Slide 1: OMV results Q1/15 and Upstream update
OMV results Q1/15 and Upstream update May 18, 2015 OMV Aktiengesellschaft
Slide 2: Results Q1/15
Results Q1/15 David C. Davies, Deputy Chairman of the Executive Board and CFO OMV Aktiengesellschaft
Slide 3: Q1/15 Highlights
Q1/15 Highlights Clean CCS EBIT Q1/15 vs. Q1/14 in EUR mn 668 Average Brent price down by 50% to USD 54/bbl Production at 303 kboe/d, down by 3% Lower oil sales volumes in Upstream, mainly due to Norway and Libya 603 333 Higher Downstream result due to strong refining 33 performance Gearin
Slide 4: Economic environment
Economic environment Oil price and EUR/USD Gas prices in EUR/MWh OMV indicator refining margin in USD/bbl 2 1.37 140 1.4 25 8 7.4 22 130 25 1.3 7 120 1.2 20 1.13 6 108 110 1.1 5 15 100 1.0 16 16 4 90 0.9 10 3 80 0.8 2 1.6 70 0.7 5 60 54 0.6 1 50 0.5 0 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/1
Slide 5: Results in Q1/15
Results in Q1/15 Clean CCS net income attributable in EUR mn Q1/15 Q1/14 to stockholders 1 EBIT 228 675 (66)% in EUR mn Financial result (23) (63) (63)% Profit from ordinary activities 206 613 (66)% Taxes 16 (175) n.m. 302 Effective tax rate (8)% 29% n.m. Net income 221 438 (49)% 237 Minorities
Slide 6: Special items and CCS effect
Special items and CCS effect Q1/15 in EUR mn Q1/15 Q1/14 in EUR mn Clean CCS EBIT 333 668 333 CCS gains/(losses) (109) (19) Clean EBIT 224 649 (109) 228 Personnel related costs (4) (4) (4) (1) 0 9 Unscheduled depreciation (1) (1) Asset disposals 0 10 Other 9 22 Total special items 4 26 Clean CCS gai
Slide 7: Cash flow
Cash flow Q1/15 in EUR mn Q1/15 Q1/14 in EUR mn Net income 221 438 (49)% (67) Depreciation and 526 543 (3)% amortization (274) 526 Other (67) 35 n.m. 221 Sources of funds 680 1,015 (33)% Change in net working (274) (108) 154% capital components (935) Cash flow from 406 907 (55)% operating activi
Slide 8: CAPEX and EBITD
CAPEX and EBITD Q1/15 in EUR mn Key investments in Q1/15 754 707 Field developments and redevelopments in Norway: Gullfaks, Aasta Hansteen, Edvard Grieg and Gudrun 384 Romania: drilling, workovers and field redevelopments 609 Exploration activities Nawara gas development project in Tunisia
Slide 9: Upstream Clean EBIT
Upstream Clean EBIT in EUR mn Q1/15 vs. Q4/14 Q1/15 vs. Q1/14 603 (426) 262 (185) (124) 33 15 (6) (30) 33 (146) 39 61 2 Q1/14 Realization Volume Exploration DD&A Other Q1/15 expenses Q4/14 Realization Volume Exploration DD&A Other Q1/15 expenses Lower oil price by 30% Lower oil price by 50% Lo
Slide 10: Upstream Key Performance Indicators
Upstream Key Performance Indicators Hydrocarbon production (kboe/d) Q1/15 vs. Q4/14 318 Production down by 5% 311 297 311 303 Norway production decreased due to 162 145 163 164 150 the shut-in of Gudrun (approx. 1 month) Libya: production shut-ins 149 152 149 154 152 Romania: up by 2 kboe/d
Slide 11: Upstream OMV Petrom group
Upstream OMV Petrom group Hydrocarbon production (kboe/d) Q1/15 vs. Q4/14 Clean EBIT at EUR 39 mn (down by 69%) 182 180 178 182 184 higher production volume 87 84 84 84 85 more than offset by lower oil prices 95 95 95 97 98 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Oil and NGL Gas OPEX in USD/boe OPEX d
Slide 12: Downstream Clean CCS EBIT
Downstream Clean CCS EBIT Q1/15 vs. Q1/14 in EUR mn 260 0 19 156 85 Q1/14 Refining 1 Marketing 1 Downstream Gas Q1/15 Significantly higher OMV indicator refining margin, lower petrochemicals margins Better performance from natural gas sales business 1 The refining and the marketing businesses ar
Slide 13: Downstream Key Performance Indicators
Downstream Key Performance Indicators Refining utilization rate in % 1 Q1/15 vs. Q1/14 103 101 88 92 95 94 90 82 86 Overall refining utilization rate at 92%, 59 up by 3% Marketing sales volumes slightly down by 3% Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Better result from Borealis mainly driven West Eas
Slide 14: Strict CAPEX and cost management
Strict CAPEX and cost management Group CAPEX reduced in EUR bn Group CAPEX reduced by EUR ~1.1 bn 1 ~3.8 E&A budget cut by up to EUR 200 mn 1 ~2.7 Reduction of annual operating cost and ~3.0 overhead cost by EUR ~150 mn 2 ~2.0 Headcount reduction program defined ~0.9 Review of non-core ass
Slide 15: Financial priorities 2015 to 2017
Financial priorities 2015 to 2017 Cash Mid-term goal: broadly neutral free cash flow after dividends 2014 dividend proposal EUR 1.25 per share 1 Dividend Maintain dividend policy of long-term payout ratio of 30% of net income Maintain strong investment grade credit rating Rating Strong bal
Slide 16: Outlook 2015
Outlook 2015 Oil price Annual average between USD 50 and 60/bbl expected Gas markets Remain challenging – portfolio under review Refining margins Expected to come down from recent highs Marketing volumes Lower product prices expected to support demand Production ~300 1 kboe/d CAPEX EUR ~2.7 bn (~80%
Slide 17: Upstream update
Upstream update Jaap Huijskes, Executive Board member responsible for Upstream OMV Aktiengesellschaft
Slide 18: Operational highlights – Projects update
Operational highlights – Projects update Edvard Grieg, Norway Nawara, Tunisia ► Gudrun (Norway): production resumed after shutdown in February ► Edvard Grieg (Norway): project execution according to plan ► Aasta Hansteen (Norway): construction going as planned ► Schiehallion (UK): progressing on FPS
Slide 19: Operational highlights – Exploration update
Operational highlights – Exploration update Exploration only Exploration and production North Sea Wisting ► Successful wells in Norway and Romania Hagar Region onshore Black ► High impact drilling in Romania and Norway Stripfing T1 Sea ► Stripfing – data evaluation ongoing; shallower Neptun Deep hor
Slide 20: Yemen – situation update
Yemen – situation update Production in Q1/15: ~7 kboe/d Deteriorating security situation; all project activities were suspended in February 2015 Sana’a office closed since last week of March 2015 Production operations continued with local staff until complete shutdown at beginning of April 2
Slide 21: Committed to CAPEX reduction plan by leveraging our portfolio mix
Committed to CAPEX reduction plan by leveraging our portfolio mix CAPEX 1 adjustments 2015 CAPEX expected at EUR ~2 bn in EUR bn Project prioritization; manage growth pace in Previous guidance: portfolio ~3.1 Exploration Re-phased and rescaled projects (e.g. Other projects Rosebank, Nawara, fa
Slide 22: Cost savings initiatives under way to capture industry deflation opportunity
Cost savings initiatives under way to capture industry deflation opportunity OPEX evolution 2015: up to USD 1/boe OPEX reduction in USD/boe enabled by intrinsic business effort Production costs estimated to remain 16.6 broadly at the Q1/15 level throughout 2015 13.9 Strict management of external
Slide 23: Romania – manage decline rates within operational and cash constraints
Romania – manage decline rates within operational and cash constraints Manage decline rate Production increased in Q1/15 but 2015 Production in Romania, outlook assumes a decline in production in kboe/d, CAGR 2015 production decline ~2-4% vs. 2014 -3% Workover at key wells onshore and gas -1-2
Slide 24: Upstream priorities 2015+
Upstream priorities 2015+ Gudrun, Norway Safety and ► Safe operations performance ► Increase operational efficiency ► Flexibility and ► Managing expenditures and optionality Manage investment level cash ► Adjust further if ► Renegotiate key cost elements needed ► Minimize impact on underlying core p
Slide 25: Disclaimer
Disclaimer This document does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract, investment decisions or commitment whatsoever.
Slide 26: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft OuvV Moving more. Moving the future. O M V