Omv Ag · VIE:OMV

Omv — OMV Aktiengesellschaft — Q3 2018 Earnings Presentation

19 slides from Omv's earnings presentation, Oct 31, 2018

  1. Slide 1: OMV Q3/18 Conference Call

    OMV Q3/18 Conference Call Rainer Seele Chairman of the Executive Board and CEO October 31, 2018 OMV Aktiengesellschaft

  2. Slide 2: Disclaimer

    Disclaimer This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook,” “expect,” “anticipate,” “target,” “estimate,” “goal,” “plan,” “intend,” “may,” “objective,” “will” and similar terms or by their context. These forward-look

  3. Slide 3: Macro environment – Higher oil and gas prices, healthy refining margins

    Macro environment – Higher oil and gas prices, healthy refining margins Oil prices USD/bbl OMV indicator refining margin USD/bbl 80 74 75 8 67 7.0 61 5.7 5.7 60 52 68 6 5.2 61 4.8 56 58 40 47 4 Average Brent price 20 Average realized crude price 2 0 0 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q3/17 Q4/17 Q1/18

  4. Slide 4: Key messages

    Key messages FINANCIAL STRONG DELIVERING THE PERFORMANCE OPERATIONS STRATEGY Excellent clean CCS Refineries ran at a very high Signed Basic Sale Agreement Operating Result utilization rate of 98% with Gazprom for a stake in of EUR 1,050 mn Achimov 4A/5A Production cost Continued strong cash brought

  5. Slide 5: Balanced and upgraded portfolio in Upstream, expected exit rate of 500 kboe/d this year

    Balanced and upgraded portfolio in Upstream, expected exit rate of 500 kboe/d this year Production Kboe/d ~500 1  500 kboe/d exit rate expected by the end Australasia of 2018 driven by both organic projects and 421 MEA acquisitions 348  OMV’s increased footprint comes with a North Sea 311 303 well

  6. Slide 6: Clean CCS Operating Result of more than EUR 1 bn achieved

    Clean CCS Operating Result of more than EUR 1 bn achieved Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Corporate & Others, Consolidation EUR mn Downstream 1,050 1.45 472 1.39 455 804 726 554 300 0.83 272 457 510 484 338

  7. Slide 7: Upstream – Benefitting from higher oil prices and an improved operational performance

    Upstream – Benefitting from higher oil prices and an improved operational performance Clean Operating Result Q3/18 vs. Q3/17 EUR mn  Realized oil price increased by 43%, realized gas price in EUR/MWh came down by 11% due to portfolio mix +254 +85%  Hedging impact in Q3/18 of EUR -59 mn 554 (vs. EU

  8. Slide 8: Downstream – Strong earnings despite higher oil price environment

    Downstream – Strong earnings despite higher oil price environment Clean CCS Operating Result Q3/18 vs. Q3/17 EUR mn Oil (26) -5%  Market environment weakened compared to strong Q3/17 510  Refining margins at USD 5.7/bbl (-19%) 36 484 7 2  Flat ethylene/propylene net margins  Strong operational p

  9. Slide 9: Strong cash generation – Balanced free cash flow despite record dividends and Abu Dhabi acquisition

    Strong cash generation – Balanced free cash flow despite record dividends and Abu Dhabi acquisition Sources and uses 1 in 9m/18 EUR bn Balanced free cash flow  Cash flow from operating activities increased to after dividends EUR 3.3 bn (9m/17: EUR 2.7 bn) ≈  Interim dividends from Borealis of EUR

  10. Slide 10: Healthy balance sheet with cash position of EUR 3.4 bn

    Healthy balance sheet with cash position of EUR 3.4 bn Net debt development EUR bn  Strong cash position of EUR 3.4 bn 4.0  Net debt down to EUR 2.3 bn 3.0 2.8  Gearing ratio at 16%, comfortably below the 2.3 long-term target of ≤30% 2.0 Dec 31, 15 Dec 31, 16 Dec 31, 17 Jun 30, 18 Sep 30, 18 28%

  11. Slide 11: Updated Outlook 2018

    Updated Outlook 2018 2017 Outlook 2018 Brent oil price (USD/bbl) 54 74 (previously 70) CEGH gas price (EUR/MWh) 18 >22 (previously >18) Total hydrocarbon production (kboe/d) 348 >420 OMV indicator refining margin (USD/bbl) 6 <6 Ethylene/propylene net margin (EUR/t) 427 425 Utilization rate refinerie

  12. Slide 12: OMV Aktiengesellschaft

    OV OMV OMV Aktiengesellschaft ouv OMV

  13. Slide 13: BACKUP

    BACKUP OMV Aktiengesellschaft

  14. Slide 14: Strong operating result despite recycling of FX losses following divestment of Samsun power plant

    Strong operating result despite recycling of FX losses following divestment of Samsun power plant Operating Result Net income attributable to Earnings Per Share EUR mn stockholders EUR Upstream EUR mn Downstream Corporate & Others, Consolidation 758 763 439 1.35 602 247 470 363 221 0.68 203 0.62 517

  15. Slide 15: Upstream – Result supported by higher realized prices

    Upstream – Result supported by higher realized prices Clean Operating Result Q3/18 vs. Q2/18 EUR mn  Realized oil price increased by 12% +97  Realized gas price increased by 1% 1 10 554  Lower hedging impact in Q3/18 of EUR -59 mn (Q2/18: EUR -124 mn) 106 457  Positive FX impact due to stronger

  16. Slide 16: Downstream – Improved operational performance and higher refining margins

    Downstream – Improved operational performance and higher refining margins Clean CCS Operating Result EUR mn Q3/18 vs. Q2/18 +146 Oil 484  Higher refining margin (+9%) 5 105  Improved ethylene/propylene net margins (+5%)  Very high utilization rate (98%); utilization rate in Q2/18 negatively 338 4

  17. Slide 17: Operational KPIs

    Operational KPIs Hydrocarbon production Refined product sales Retail sales kboe/d mn t mn t 419 406 5.39 5.50 1.72 1.74 4.98 1.60 341 Q3/17 Q2/18 Q3/18 Q3/17 Q2/18 Q3/18 Q3/17 Q2/18 Q3/18 Hydrocarbon sales Refinery utilization rate Natural gas sales mn boe % TWh 35.7 35.2 96 98 24.0 24.8 23.3 28.4 7

  18. Slide 18: Strong balance sheet

    Strong balance sheet Balance Sheet Sep 30, 2018 vs. Jun 30, 2018 Highlights EUR bn Assets 35.8 35.8  Cash position increased to EUR 3.4 bn reflecting 33.5 33.5 OMV’s strong organic cash generation  Other current assets increased to EUR 4.2 bn driven Stockholders’ equity 11.5 by higher derivatives

  19. Slide 19: Sensitivities of OMV Group in 2018

    Sensitivities of OMV Group in 2018 Annual impact 1 Clean CCS Operating Operating cash flow in EUR mn Result 2 Brent oil price (USD +1/bbl) +45 +30 OMV realized gas price (EUR +1/MWh) +125 +95 CEGH/NCG gas price 3 (EUR +1/MWh) +40 +35 OMV indicator refining margin (USD +1/bbl) +105 +80 Ethylene/propy

OMV Aktiengesellschaft — Q3 2018 Earnings Presentation on 6ix