Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q3 2023 Earnings Presentation
18 slides from Omv Petrom Sa's earnings presentation, Oct 31, 2023
Slide 1: OMV Petrom Q3/23 Results
OMV Petrom Q3/23 Results Christina Verchere, CEO October 31, 2023
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, constituting or forming part of, any actual offer to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares issued by the Company or any
Slide 3: Lower commodity prices
Commodity prices Lower commodity prices Oil prices FX OMV Petrom indicator refining margin USD/bbl RON/USD, RON/EUR USD/bbl 4.9 4.9 4.9 4.9 4.9 18.8 4.9 17.1 16.6 16.8 4.8 4.6 4.5 4.5 11.2 101 89 81 78 87 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Avg USD/RON Avg EUR/RON Avg Brent p
Slide 4: Mixed demand evolution despite economic growth
Romanian environment Mixed demand evolution despite economic growth GDP 4.8% 2.6% 2.75% 3.75% Growth expected 20221 Q2/231 2023e2 2024e2 Inflation 8.8% 7.5% 4.4% (CPI) On a downward Sep 23/Sep 221 2023e3 2024e3 trend Romania maintained at investment grade by major rating agencies4 Demand Q3/23 yoy 9
Slide 5: Highly regulated gas and power market
Romanian regulatory and fiscal environment Highly regulated gas and power market Further interventions Increasingly regulated gas sales portfolio Gas and power sector: Q3/23 Q2/23 Law 357/2022 and Law 206/2023: price caps for gas and power, price 30% cap for gas used in power production, regulated q
Slide 6: Key messages Q3/23: Continued to deliver on our Strategy 2030
Key messages Q3/23 Continued to deliver on our Strategy 2030 Good financial performance Clean CCS Operating result Operating Cash Flow Clean CCS ROACE RON 2.5 bn RON 3.0 bn 25.2% -40% yoy -6% yoy -11.4 pp yoy Operational performance Strategic focus Neptun Deep: FDP1 endorsed by Regulator; major fa
Slide 7: Auchan partnership strengthens our retail business
Delivering on our retail strategy Auchan partnership strengthens our retail business Successful partnership MoU signed in 2019 based on good results of the pilot phase, project accelerated in 2021 MyAuchan proximity stores in all Petrom branded filling stations in Romania (~ 400 stations) Strong
Slide 8: Resilient performance
Operational performance Resilient performance Exploration and Production Refining and Marketing Gas and Power Hydrocarbon production Refinery utilization rate Gas sales volumes kboe/d % TWh -3% -3% -4 pp +19% 117 118 116 114 113 99 99 98 95 12.5 13.1 11.7 56 57 56 55 54 9.8 9.5 31 61 61 60 59 59 Q3/
Slide 9: CAPEX on an upward trend yoy
CAPEX On an upward trend yoy Group CAPEX1 RON bn 9m/23 2023E <5.5 RON 3.4 bn: Up to RON 5.5 bn: 31 new wells and sidetracks; ~360 Wells and sidetracks: ~50; ~500 workovers workovers 3.6 Neptun Deep project Coke drums replacement 2.8 Coke drums replacement Major turnaround in Petrobra
Slide 10: OMV Petrom Q3/23 Results - Alina Popa, CFO
OMV Petrom Q3/23 Results Alina Popa, CFO October 31, 2023
Slide 11: Results decreased from Q3/22 record highs
Income Statement Results decreased from Q3/22 record highs Clean CCS Operating Result RON bn -40% -38% 4.2 Q3/23 Clean CCS Operating Result reflects: 10.1 0.3 1.3 2.8 ► Lower commodity prices and refining margin 2.5 6.2 0.4 3.2 1.6 1.3 1.0 1.8 ► Lower electricity sales quantities 1.4 4.4 1.1 3.3 ►
Slide 12: Solid Operating Results, yet lower yoy
Clean CCS Operating Result Solid Operating Results, yet lower yoy E&P RON mn Lower E&P taxation 1,362 -67 -164 1,131 Realized crude price -15%; lower realized gas price Hydrocarbon sales -4% Higher production costs Negative FX effect Q3/22 Market effects1 Operational effects Q3/23 Higher
Slide 13: Strong cash generation, improved working capital
Cash flow Strong cash generation, improved working capital Cash Flow from Operating Activities RON bn -16% -6% 3.2 9.6 8.1 Q3/23 Cash Flow from Operating Activities: 3.0 4.5 12.2 7.4 ► Decrease in operating cash flow before working capital changes 3.0 2.2 ► Improved working capital 0.0 -2.6 -1.5 -
Slide 14: Outlook 2023-2025
Outlook 2023-2025 Indicators Actual Assumptions/ Targets Assumptions/ Targets 9m/23 2023 2024-2025 averages Brent oil price USD 82.1/bbl USD >80/bbl USD ~75/bbl (prev.: USD 75 – 80/bbl) Production 1 114 kboe/d >112 kboe/d 95 – 100 kboe/d (prev.: ~110 kboe/d) Refining margin USD 14.9/bbl USD 12 – 14/
Slide 15: Q&A
Q&A October 31, 2023
Slide 16: Back-up
Back-up October 31, 2023
Slide 17: Sensitivities: EBIT impact in 2023
Sensitivities EBIT impact in 2023 2023 sensitivities Change EBIT impact Brent oil price USD +1/bbl ~EUR +15 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn Exchange rates EUR/USD USD appreciation by 5 USD cents ~EUR +50 mn 17 OMV Petrom Q3/23 Results
Slide 18: @ OMV Petrom
@ OMV Petrom