Slide 1: Webcast – Conference Call: Second Quarter 2018 Results
WEBCAST – CONFERENCE CALL Second Quarter 2018 Results July 26th 2018 © Repsol Investor Relations www.repsol.com
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2018 Repsol, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any form or
Slide 3: 2Q 2018 Results
2Q 2018 Results 1. Key messages 2. Operational activity 3. Financial results 4. Outlook for 2018 5. Conclusions ©
Slide 4: Key messages
Key messages . 2018-2020 Capex breakdown 4 Downstream Expand € Billion 1.5 and Low carbon 4 11 2.52 business 11 Upstream Growth Upstream & Downstream Sustain 2015-20171 Core Portfolio New 2018-2020 Initiatives 1. Excluding Capex from Talisman acquisition. 2. Includes €750M from Viesgo acqu
Slide 5: Market environment
Market environment Brent - $/bbl 80 74.4 70 66.8 61.3 60 52.1 50 49.6 40 30 2Q17 3Q17 4Q17 1Q18 2Q18 2Q18 Exchange Rate - $/€ Henry Hub - $/Mbtu 1,25 3,5 1.23 3.2 1,20 1.19 3.0 3.0 3,0 1.18 1,15 1.17 2.9 2.8 1,10 2,5 1.10 1,05 1,00 2,0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q18 © 5
Slide 6: Operational Activity: Upstream
Operational Activity Upstream - 1% 727 722 724 kboe/d kboe/d kboe/d 1Q 2018 2Q 2018 1H 2018 2Q18 volumes were supported by: Exploration program: • Higher production in Peru 5 exploratory wells completed (3 positive) • Increased volumes in Marcellus • Ramp-up in Reggane Development activity: Bung
Slide 7: Operational activity: Downstream
Operational activity Downstream Refining Margin Indicator Petrochemicals 10 7.0 6.9 7.2 6.2 6.6 • Worse international environment 5 • Multiannual turnaround of Sines 0 cracker 2Q17 3Q17 4Q17 1Q18 2Q18 2Q18 $/bbl Utilization rates Commercial businesses 2Q 2018 • Marketing business: • Higher activity
Slide 8: Financial Results
Financial Results Q2 2018 Q2 2017 Variation % CCS Adjusted Net Income 549 445 + 23% Net Income 936 367 + 155% UPSTREAM Q2 2018 Q2 2017 Variation CCS Adjusted Net Income 360 115 + €245M Million € DOWNSTREAM Q2 2018 Q2 2017 CCS Adjusted Net Income 337 429 - €92M Million € CORPORATE & OTHERS Q2 2018 Q2
Slide 9: Outlook for 2018
Outlook for 2018 Capex guidance: full-year forecast of ~€4Bn • Upstream €2.2Bn • Downstream €0.9Bn • Low carbon business €0.8Bn • Corporation €0.1Bn Production: ~715 kboe/d subject to fluctuations in Libya Downstream: • Full year Refining Margin Indicator ~7$/bbl with a premium in CCS
Slide 10: Conclusions
Conclusions On track to deliver 2018 targets Value growth based on: • Improved shareholder returns • Increased profitability across portfolio • Building a low-carbon Gas and Power business Organic cash flow generation and proceeds from Gas Nat we will allow to : • Increase capex • Grow shareho
Slide 11: Q&A Session
Q&A Session Second Quarter 2018 Results Repsol Investor Relations investorsrelations@repsol.com ©
Slide 12: Webcast – Conference Call: Second Quarter 2018 Results
WEBCAST – CONFERENCE CALL Second Quarter 2018 Results July 26th 2018 © Repsol Investor Relations www.repsol.com