Saudi Arabian Oil Co. · TADAWUL:2222
Saudi Arabian Oil — Saudi Aramco — H1 2020 Earnings Presentation
17 slides from Saudi Arabian Oil's earnings presentation, Aug 10, 2020
Slide 1: Saudi Aramco H1 2020 Results
Saudi Aramco H1 2020 Results August 10, 2020
Slide 2: Cautionary notes
Cautionary notes IMPORTANT: The following applies to this presentation and associated slides by Saudi Arabian Oil Company (the “Company”) (collectively, the “Information”). The Information contains forward-looking statements. All Information other than statements relating to historical or current fa
Slide 3: Amin Nasser, President & CEO
Amin Nasser President & CEO 3Saudi Aramco: Company General Use
Slide 4: COVID-19 response and update
Proactive protective measures Getting ahead of the curve through prevention COVID-19 response Business continuity focus Protecting and enabling operations and update Enhanced resilience and dynamic working patterns Leverage digital, communications, and remote working 4Saudi Aramco: Company General U
Slide 5: Challenging macro-economic environment
Challenging macro-economic environment Brent Global demand1 ($/bbl) (mmbpd)2 75 Actual Forecast 110 60 Unprecedented reduction 100 45 in global demand due to 30 90 pandemic 15 0 80 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Continued pressure on Brent price Oil demand1 refining and chemicals ma
Slide 6: H1 2020 milestones
H1 2020 milestones • Highest net income, dividends and • Continued leadership in upstream Total Shareholder Return amongst carbon intensity major oil companies since IPO • Significant contribution to OGCI1 • Dividend delivery: aggregate $37.5bn 2025 overall carbon intensity target announced for Q1 a
Slide 7: Khalid Al-Dabbagh, CFO
Khalid Al-Dabbagh CFO 7Saudi Aramco: Company General Use
Slide 8: H1 2020 operational and financial performance
H1 2020 operational and financial performance Hydrocarbon production Net income Capital expenditure 12.7mmboed 1 $23.2bn $13.6bn H1 2019: 13.2 H1 2019: $46.9bn H1 2019: $14.5bn Crude production Free cash flow3 Dividends paid 9.5mmbpd 2 $21.1bn $32.1bn H1 2019: 9.9 H1 2019: $38.0bn H1 2019: $46.4bn 1
Slide 9: Sources and uses of cash
Sources and uses of cash H1 20191 H1 20202 ($ billion) ($ billion) 14 35 7 14 121 52 46 35 58 32 Sources Uses Sources Uses Net cash flow from operations Capex Cash acquired on acquisition Dividends 1. 2019 excludes proceeds from inaugural bond issue of $12.1bn and purchases of short-term investments
Slide 10: Impact of SABIC acquisition
Impact of SABIC acquisition • Positioned within top petrochemicals players globally • Petrochemicals production of ~90 million tonnes combined1 • Payment over eight years • Dividends received from closing onwards • Full consolidation • Recognition of deferred payments in our debt and gearing 1. 2019
Slide 11: Capital discipline and flexibility
Capital discipline and flexibility Total capex1 ($ billion) 40 • Capital spending remains under continuous 35 scrutiny and review 30 $25-30bn − 2020: lower end of $25-30bn range2 25 20 − 2021 and beyond under review: expected to be significantly lower than 15 previous guidance 10 5 • Lowest capital
Slide 12: Shareholder distributions
Shareholder distributions ($ billion) 1 80 75 73 70 • Intention to declare aggregate ordinary 58 cash dividends of $75bn in respect of 2020 60 50 subject to Board approval 50 40 • Dividend prioritization for public shareholders 30 - Downside protection 20 10 0 2017 2018 2019 2020 1. Intention to dec
Slide 13: Financial strength across cycles
Financial strength across cycles Rigorous capital allocation process 5-15% target gearing across the cycle1 Dividend priority for public shareholders 1. Gearing calculated as net debt to net debt plus book equity 13Saudi Saudi Aramco: Company General Use
Slide 14: Committed to value creation
Committed to value creation Resilient financial performance Responsive to changing environment 2020 capital spending lowered Intention to declare $75bn dividend1 1. Subject to Board approval 14Saudi Saudi Aramco: Company General Use
Slide 15: Amin Nasser, President & CEO
Amin Nasser President & CEO 15Saudi Saudi Aramco: Company General Use
Slide 16: Sustainable and growing free cash flow
Sustainable and growing free cash flow Liquids Gas Downstream • Potential for continued • Meet growing domestic • Enhancing performance volume growth demand - Asset optimization • Advantaged low cost, • Commercial returns - SABIC integration low carbon resource base - Expanding global trading 16Saud
Slide 17: Questions & Answers
Questions & Answers 17Saudi Saudi Aramco: Company General Use