Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q3 2013 Earnings Presentation
31 slides from Orlen Spolka Akcyjna's earnings presentation, Oct 29, 2013
Slide 1: Consolidated Financial Results of LOTOS Group 3Q 2013
Consolidated Financial Results of LOTOS Group 3Q 2013 Management Board of Grupa LOTOS S.A. 29th October 2013
Slide 2: Agenda
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Market Conditions Upstream 4 Upstream Downstream 5 Downstream financial results Consolidated Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 2/31
Slide 3: Key Highlights: 3Q 2013 in a Nutshell
Grupa LOTOS S.A. KEY HIGHLIGHTS 3Q 2013 IN A NUTSHELL Business highlights Development of the B8 field - joint financing agreement signed between LOTOS Petrobaltic S.A. and Polskie Inwestycje Rozwojowe S.A. (PIR) Strong operational performance despite difficult macro environment Financial highlig
Slide 4: Key Highlights (continued): 3Q 2013 Overall Figures
Grupa LOTOS S.A. KEY HIGHLIGHTS (CONTINUED) 3Q 2013 OVERALL FIGURES Crude oil production amounted to 53.5 k tons (4,488 bbl/d) Crude oil throughput amounted to 2,398 k tons Consolidated sales at the level of 2,516 k tons Average Brent Dtd price at the level of 110.29 USD/bbl (+0.7% yoy and +
Slide 5: Financing of B8 Field – Agreement with PIR
Grupa LOTOS S.A. KEY HIGHLIGHTS (CONTINUED) FINANCING OF B8 FIELD – SIGNING OF THE AGREEMENT WITH PIR* Planned SPV to be set up for the further development of B8 field Type of the project: „Project Finance” Asset type: „greenfield” Estimated CAPEX ~1 600m PLN Structure of the deal: Assets
Slide 6: Market conditions
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Consolidated financial results Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 6/31
Slide 7: Model Refining Margin – New Approach (1/2)
Grupa LOTOS S.A. MARKET CONDITIONS MODEL REFINING MARGIN – NEW APPROACH (1/2) Yield structure in the old and new model Commentary The method takes into account: completion of the +10 Programme, the Gdańsk refinery’s switch to natural gas as the fuel source enhanced energy efficiency profile,
Slide 8: Model Refining Margin – New Approach (2/2)
Grupa LOTOS S.A. MARKET CONDITIONS MODEL REFINING MARGIN – NEW APPROACH (2/2) Comparison of the old vs new model (USD/bbl) 2013 weeks Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 8/31
Slide 9: Margin and Oil Prices
Grupa LOTOS S.A. MARKET CONDITIONS MARGIN AND OIL PRICES Average quarterly model refining margin (USD/bbl) Crude oil prices and spread (USD/bbl) Decrease in terms of avg Brent/Ural spread in comparison with previous quarters (negative spread until mid August, with a rebound in the second part of t
Slide 10: Fluctuations of Foreign Exchange Rates
Grupa LOTOS S.A. MARKET CONDITIONS FLUCTUATIONS OF FOREIGN EXCHANGE RATES USD/PLN rate EUR/USD rate *end of period values The EUR/USD rate increased qoq USD appreciated versus PLN by 20gr comparing with the end of the 2Q Management Board - Consolidated Financial Results of the LOTOS Group 3Q 201
Slide 11: Upstream
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Consolidated financial results Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 11/31
Slide 12: Geographical Coverage of LOTOS' Upstream Operations
Grupa LOTOS S.A. UPSTREAM GEOGRAPHICAL COVERAGE OF LOTOS’ UPSTREAM OPERATIONS Sales volumes (ths tonnes) Reserves (ths bbl) Production (bbl/d) Helsinki Oslo Stockholm Vilnius * increase in the level of 2P reserves in Norway – following methodological changes to way of calculation; no physicial incre
Slide 13: Upstream Sales and Production
Grupa LOTOS S.A. UPSTREAM UPSTREAM SALES AND PRODUCTION Crude oil production (k tonnes) Commentary Stable q/q production, with linear contributions from AB Geonafta and B3 field Level of sales staying slightly below the production levels, due to delayed delivery schedule to Gdansk refinery Manag
Slide 14: EBIT Development & Normalised EBIT
Grupa LOTOS S.A. UPSTREAM EBIT DEVELOPMENT & NORMALISED EBIT EBIT UPSTREAM (PLN m) NORMALISED EBIT UPSTREAM (PLN m) -37m -34% Commentary The quarterly upstream EBIT at a level of PLN 9m, lower than in 3Q’12 and significantly lower than in 2Q’12; negatively influenced by one-off effect – costs rela
Slide 15: EBITDA Development & Normalised EBITDA
Grupa LOTOS S.A. UPSTREAM EBITDA DEVELOPMENT & NORMALISED EBITDA EBITDA UPSTREAM (PLN m) NORMALISED EBITDA UPSTREAM (PLN m) -33m -12m Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 15/31
Slide 16: Downstream
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Consolidated financial results Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 16/31
Slide 17: Refinery Throughput
Grupa LOTOS S.A. DOWNSTREAM REFINERY THROUGHPUT Crude oil throughput (k tonnes) -2% 3Q 13 fairly in line with the comparable period of 2012, and a visible rebound after lower throughput levels in 2Q 13, impacted by the maintenance shutdown Since the beginning of the year AB Geonafta oil is being
Slide 18: Production & Sales Data of Products and Goods
Grupa LOTOS S.A. DOWNSTREAM PRODUCTION & SALES DATA OF PRODUCTS AND GOODS Volume of production (k tons) Commentary The 3Q 13 production level was at the level 2 628k tons (-1% y/y) Visibly improved product slate with lower share of HSFO and slightly higher gasoline and diesel y/y Volume of sales
Slide 19: Retail Market Share
Grupa LOTOS S.A. DOWNSTREAM RETAIL MARKET SHARE Retail market share Wholesale market share Petrol station network by type 30 Sep 2013 127 21 416 Second quarter in a row marked by an improvement in terms of wholesale market share 30 Dec 2012 101 28 405 Continuously increasing market share in term
Slide 20: Retail Results
Grupa LOTOS S.A. DOWNSTREAM RETAIL RESULTS Retail Net Sales (PLN m) Retail EBIT & Sales Volumes +13% Record high sales in retail following improving demand in the market in the third quarter Improved q/q sales volumes for the second consecutive quarter and achieving a positive EBIT of PLN 6m Man
Slide 21: Financial Results – Quarterly View
Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – QUARTERLY VIEW Downstream Net Sales (PLN m) -9% 9% decrease in terms of quarterly net sales year on year following lower sales volumes and a drop of revenues from Diesel following lower prices in the market Management Board - Consolidated Financial R
Slide 22: Financial Results – EBITDA & EBIT
Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – EBITDA & EBIT Downstream EBITDA (PLN m) Downstream EBIT (PLN m) -36% -43% Reported EBITDA and EBIT for the current quarter following the worsened overall cracks by the key products, still delivering solid results despite a severe slump in terms of mo
Slide 23: LIFO EBITDA & EBIT Analysis
Grupa LOTOS S.A. DOWNSTREAM LIFO EBITDA & EBIT ANALYSIS LIFO EBITDA Downstream (PLN m) LIFO EBIT Downstream (PLN m) -35% -30% The LIFO EBITDA and LIFO EBIT at the respective levels of PLN 473m and PLN 353m Following the decrease of oil inventories, the calcuation of the EBIT LIFO took into accou
Slide 24: Consolidated financial results
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Consolidated financial results Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 24/31
Slide 25: EBIT Quarterly Segment Contribution
Grupa LOTOS S.A. CONSOLIDATED FINANCIAL RESULTS EBIT QUARTERLY SEGMENT CONTRIBUTION 3Q 2013 (PLN m) 3Q 2012 (PLN m) Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 25/31
Slide 26: Cumulative EBIT 9M 2013 Segment Contribution
Grupa LOTOS S.A. CONSOLIDATED FINANCIAL RESULTS CUMULATIVE EBIT 9M 2013 SEGMENT CONTRIBUTION 9M 2013 (PLN m) 9M 2012 (PLN m) *9M 2013: reversal of impairment related to B4 and B6 fields, and revaluation of estimated provision for offshore oil and gas facilities in Norway 9M 2012: write down related
Slide 27: LIFO Effect Analysis
Grupa LOTOS S.A. CONSOLIDATED FINANCIAL RESULTS LIFO EFFECT ANALYSIS 3Q 2013 LIFO effect analysis (PLN m) Commentary LIFO EBITDA at the level of PLN 553m in 3Q 2013, comparing with PLN 790m in 3Q 2012 The worse performance in the 3Q 2013, was mainly a result of worsened consolidated operational
Slide 28: Balance Sheet Evolution
Grupa LOTOS S.A. CONSOLIDATED FINANCIAL RESULTS BALANCE SHEET EVOLUTION Assets Commentary Inventories fell by PLN 561m, driven mainly by -561m a decline in inventories of crude oil and finished products +646m ST receivables increased by PLN 646m, led primarily by higher sales volume in September
Slide 29: Financial Debt
Grupa LOTOS S.A. CONSOLIDATED FINANCIAL RESULTS FINANCIAL DEBT 10+ and inventory related debt denominated in USD (PLN m) Financial debt (PLN m) -687m Net debt (PLN m) Continuosly decreasing level of indebtness, partially explained Gearing ratio by the development by the appreciation of PLN vs USD
Slide 30: Thank You
Grupa LOTOS S.A. Thank You Investor Relations tel: +48 58 308 73 93 fax: +48 58 346 22 35 e-mail: ir@grupalotos.pl Management Board - Consolidated Financial Results of the LOTOS Group 3Q 2013 30/31
Slide 31: Legal Disclaimer
Grupa LOTOS S.A. LEGAL DISCLAIMER • This presentation regarding the consolidated financial results of Grupa LOTOS S.A. after the third quarter of 2013 („Presentation") has been prepared by Grupa LOTOS S.A. ("Company"). The Presentation nor any copy hereof may be copied, distributed or delivered dire