Repsol Sa · BME:REP
Repsol Sa — Q3 2022 Earnings Presentation
14 slides from Repsol Sa's earnings presentation, Oct 27, 2022
Slide 1: 3Q22 Results Repsol Conference Call
3Q22 Results REPSOL CONFERENCE 27 October 2022 CALL Josu Jon Imaz CEO 1
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED ©REPSOL,S.A.2022 This document contains information and statements that constitute forward-looking statements about Repsol. Such estimates or projections may include statements about current plans, objectives and expectations, including statements regarding trends
Slide 3: Agenda
Agenda 01. Key messages 02. Divisional performance 03. ESG Day 04. Financial results 05. Outlook Repsol 3Q22 Results 3
Slide 4: Moving forward towards strategic objectives in a volatile environment
Key messages Moving forward towards strategic objectives in a volatile environment Accelerating portfolio transformation EIG to acquire 25% of Repsol’s Upstream €1.5 B €3.2 B business for $3.4 B ($4.8 B EV) €4.3 B proceeds and €23 B EV (100%) Adjusted Net Income CFFO between Upstream and Renewables
Slide 5: Supportive macro scenario driven by higher gas prices and stronger dollar
Market environment Supportive macro scenario driven by higher gas prices and stronger dollar Brent Henry Hub ($/bbl) 114 ($/Mbtu) 8.2 102 101 7.2 80 5.8 74 5.0 4.0 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 Repsol’s Refining Margin Indicator Exchange Rate ($/bbl) ($/€) 23.3 1.18 1.14 1.12 1.0
Slide 6: Incorporating a leading global investor and crystallizing value
Divisional performance - Upstream Incorporating a leading global investor and crystallizing value Equity payment to Repsol Strategic partnership with EIG validates $3.4B Repsol’s commitment to the Upstream vertical as a core division Proceeds of $3.4 B, for a total consideration of 75% 25% $4.8 B, i
Slide 7: Moving forward in key Upstream projects
Divisional performance - Upstream Moving forward in key Upstream projects Production 3Q22 vs 2Q22 Developing activity Pikka (US) (Kboe/d) +16 -16 +9 FID approved, FO 2026, 80 Kboe/d3 540 549 Eagle Ford (US) FID 3rd phase approved 60 Kboe/d in 20232 Cypre (T&T) 2Q22 North Latin Europe, Africa 3Q22 Am
Slide 8: Divisional performance – Industrial
Divisional performance – Industrial Refining margins above mid-cycle. Chemicals impacted by demand and costs Refining Chemicals Transformation Margins above mid-cycle levels in very Challenging environment anticipates Industrial complexes evolving into volatile quarter economic downturn multi-energy
Slide 9: Divisional performance – Commercial and Renewables
Divisional performance – Commercial and Renewables Crystallizing value and progressing in the Renewables project pipeline Mobility Retail E&G Renewables Higher sales offset by the Approaching 1.5 M customers Completed sale of 25% minority discounts applied in Spain in Iberia stake for 905 M€ Results
Slide 10: Repsol's ESG Day
Repsol’s ESG Day A just Energy Transition requires accessible, competitive and sustainable energy ▪ The world is not reducing emissions World European Union +44% -32% Increase in global emissions • Exported CO2 (2019 vs. 2000) • Lower industrial weight ▪ Must guarantee security of supply (including
Slide 11: 3Q22 Results
Financial results 3Q22 Results Results (€ Million) Q3 2022 Q2 2022 Q3 2021 Upstream 753 947 385 Industrial 638 1,157 100 Commercial and Renewables 158 98 169 Corporate and Others (72) (81) (31) Adjusted Net Income 1,477 2,121 623 Inventory effect (552) 532 139 Special items (242) (1,506) (58) Net In
Slide 12: Increasing shareholder distributions in higher price scenario
Outlook Increasing shareholder distributions in higher price scenario Production FY22 at 550 Kboe/d -20 Kboe/d vs previous guidance Cash Flow From Operations FY22 €8.4 - 8.7 B Capex FY22 ~ €4 B Shareholder Remuneration Distribute 25-30% of organic CFFO 150 M shares already cancelled YTD Additional 5
Slide 13: Conclusions: Accelerating transformation, improving remuneration, reinforcing balance-sheet
Conclusions Accelerating transformation, improving remuneration and reinforcing balance-sheet ▪ Allocating the extra cash generated in higher price scenario in accordance with strategic priorities: portfolio transformation, shareholder remuneration and financial strength Leading the ▪ Crystallizing
Slide 14: Repsol Conference Call
3Q22 Results REPSOL CONFERENCE 27 October 2022 CALL Repsol Investor Relations investor.relations@repsol.com Repsol 3Q22 Results 14