Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q4 2020 Earnings Presentation
19 slides from Omv Petrom Sa's earnings presentation, Feb 4, 2021
Slide 1: OMV Petrom Q4/20 Results
OMV Petrom Q4/20 Results Christina Verchere, CEO February 4, 2021 OMV Petrom S.A.
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, This presentation may contain forward-looking statements. These statements and should not be construed as, constituting or forming part of, any actual reflect the Company’s current knowledge and its expe
Slide 3: Economic environment
Economic environment Oil price (USD/bbl) and FX (RON/USD) OMV Petrom indicator refining margin (USD/bbl) 4.8 4.8 4.8 4.8 4.9 6.75 4.3 4.4 4.68 4.4 4.1 4.1 63.1 50.1 43.4 44.4 62.8 29.9 1.85 2.00 48.1 44.2 42.9 29.6 0.94 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Avg Urals price in USD/bbl (left axis) Avg USD/RON
Slide 4: Romanian environment
Romanian environment Fiscal and regulatory Macroeconomic environment framework Authorities’ reaction to COVID: GDP growth: State of alert prolonged until mid-February Q3/201: -5.7% yoy; 9m/20: -4.5% yoy Vaccination program ongoing 2020e2: -5.2% yoy Health and social, fiscal and monetary me
Slide 5: Key messages Q4/20
Key messages Q4/20 performance Clean CCS Operating Cash Clean CCS Dividend Financial Operating result Flow ROACE proposal 1 RON 0.5 bn RON 1.2 bn 6.4% RON 1.8 bn Managed crisis with no business interruptions, good net working capital and asset utilization Operational highlights Upstream Natural de
Slide 6: Operational KPIs
Operational KPIs Upstream Downstream Oil Downstream Gas Hydrocarbon production Refinery utilization rate Gas sales volumes (kboe/d) (%) (TWh) -8% -2% -2% 0% 152 150 147 141 140 98 -33% -10% 96 96 19.85 18.61 72 72 71 69 67 13.06 12.11 13.25 89 80 79 76 73 73 86 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q4/19 Q1
Slide 7: CAPEX and E&A
CAPEX and E&A Organic CAPEX Group organic CAPEX* 2020 at RON 3.0 bn: (RON bn) 63 new wells and sidetracks 830 workovers -28% -28% Securing long-term logistic access to Petrobrazi refinery 4.2 Bio-compliance blending project -4% -4% 3.0 2021E at RON ~2.9 bn: 2.9 Wells and sidetracks: up
Slide 8: OMV Petrom achievements on strategic objectives
OMV Petrom achievements on strategic objectives 2021+ Strategic Objectives 2020 Achievements Production cost stabilized at ~11 USD/boe Exploit full potential of Romanian opportunities 40 marginal fields are being divested, process to be finalized in H1/21 Improve competitiveness >70% autom
Slide 9: OMV Petrom Q4/20 Results - Alina Popa, CFO
OMV Petrom Q4/20 Results Alina Popa, CFO February 4, 2021
Slide 10: Income Statement highlights
Income Statement highlights Clean CCS Operating Result (RON bn) Q4/20 Clean CCS Operating Result reflects: -50% 4.57 ► Lower oil and gas prices -58% ► Weak refining margin 2.29 1.12 ► Decreased fuel sales volumes partially offset by solid 0.47 margins Q4/19 Q4/20 2019 2020 ► Significantly higher c
Slide 11: Clean CCS Operating Result
Clean CCS Operating Result Upstream (RON mn) Lower oil and gas prices 700 Hydrocarbon sales -7% -653 26 Lower clean exploration expenses -103 19 64 Ongoing cost optimization Q4/19 Market Volume Exploration Other Q4/20 effects Lower depreciation Downstream (RON mn) Significantly stronger
Slide 12: Cash Flow highlights
Cash Flow highlights Cash Flow from Operating Activities (RON bn) -18% -18% 6.8 5.6 -30% -30% 1.8 7.1 4.6 Q4/20 CFO: lower decrease than Operating Result due 1.2 1.8 1.0 0.2 1.0 to improved net working capital -0.3 -0.1 Q4/19 Q4/20 2019 2020 Sources of funds Net Working Capital Free Cash Flow 1 (R
Slide 13: Strong response to adjust to the weak market environment
Strong response to adjust to the weak market environment Planned reductions of Targets achieved ~RON 2.0 bn (2020 vs. 2019) Rephased and optimized long-term delivery projects Cut of non-committed CAPEX RON 1.2 bn1 Reduced (30%)2, 3 Decrease by >30% of number of wells drilled CAPEX Decrease
Slide 14: 2020 Dividend proposal: RON 1,756 mn
2020 Dividend proposal: RON 1,756 mn DPS1 2020: RON 0.031, flat yoy Dividend yield2 2020: 8.5%, higher than 6.9% in 2019 2012-2020 DPS and Dividend yield DPS, RON/share 2020 Payout ratio (%) 2 Dividend yield , % RON mn 9.0 1,756 8.5 7.0 6.9 1,291 5.7 136% 0.031 0.031 1 0.027 0.020 0.015 2016 201
Slide 15: Outlook
Outlook Assumptions/Targets Assumptions/Targets Indicators Actual 2020 2021 2022-2023 averages Brent oil price USD 41.84/bbl USD 50-55/bbl USD 60/bbl Production 145 kboe/d Decline ~5% yoy1 Decline ~5% yoy1 Refining margin USD 2.9/bbl >USD 4/bbl USD ~5/bbl CAPEX2 RON 3.0 bn RON ~2.9 bn RON ~3.8 bn FC
Slide 16: The energy for a better life
B® OMV Petro The energy for a better life.
Slide 17: Back-up
B® OMV Petro The energy for a better life.
Slide 18: Sensitivities in 2021
Sensitivities in 2021 OMV Petrom Group main sensitivities Operating Result impact Brent oil price USD +1/bbl ~EUR +20 mn Equity gas price EUR +1/MWh ~EUR +20 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn USD appreciation by 5 USD Exchange rates (EUR/USD) ~EUR +35 mn cents 18 | OMV P
Slide 19: Clean CCS Operating Result
Clean CCS Operating Result Upstream (RON mn) Lower oil and gas prices 2,845 One-off positive effect in Q1/19 -2,872 Lower clean exploration expenses 7 -183 123 95 Ongoing cost optimization 2019 Market Volume Exploration Other 2020 effects Downstream (RON mn) Significantly stronger power pe