Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Polskie Górnictwo Naftowe i Gazownictwo — Q3 2018 Earnings Presentation
19 slides from Orlen Spolka Akcyjna's earnings presentation, Nov 21, 2018
Slide 1: Financial performance of the PGNiG Group in Q3 and 9M 2018
Polskie Górnictwo Naftowe i Gazownictwo SA Financial performance of the PGNiG Group in Q3 and 9M 2018 November 21st 2018
Slide 2: Performance drivers
Performance drivers 9-month average crude oil price Revenue up on rising PLN weaker yoy against USD and EUR up 32% yoy in Q3 2018 PLN USD/bbl hydrocarbon prices and 4,5 100 +1% higher gas sales volumes. 4.31 Rising unit cost of gas. 4.26 80 75.34 4,0 60 +2% 51.73 +46% 3,5 3.63 3.70 51.43 +32% 67.67
Slide 3: Changes in the presentation of services under IFRS 15
Changes in the presentation of services under IFRS 15 Effect of the implementation of IFRS 15 on the consolidated The Group has applied the requirements of new statement of profit or loss IFRS 9 and IFRS 15 with the use of a modified retrospective approach, effective as of January 2017 consolidated
Slide 4: Effects of presentation changes under IFRS 15 – segments
Effects of presentation changes under IFRS 15 – segments Without presentation changes under IFRS 15 Q3 2017 Q3 2018 The Trade and Storage Trade and Storage segment acts as a agent with Revenue 5,051 6,254 respect to gas distribution, gas Operating expenses (excl. D&A) -5,331 -6,723 transmission and
Slide 5: Q3 2018 financial highlights
Q3 2018 financial highlights Group’s EBITDA by segment in Q3 2017 vs Q3 2018 [PLNm] Q3 2017 Q3 2018 D% PLNm Revenue 6,034* 7,595 +26% 1500 1376 1300 Operating expenses (excl. D&A) -4,955* -6,127 +24% 1100 900 798 EBITDA 1,079 1,469 +36% 700 581 579 500 Depreciation and amortisation -661 -643 -3% 300
Slide 6: Segments – Exploration and Production
Segments – Exploration and Production [PLNm] Q3 2017 Q3 2018 D% Revenue growth driven by Revenue 1,271 1,854 +46% higher prices of oil and gas yoy and an increase in the volumes Operating expenses (excl. D&A) -473 -478 +1% of oil sold. Costs of dry wells -54 -165 +3x Comments: Revenue from sales of
Slide 7: Trade and Storage
Trade and Storage [PLNm] Q3 2017 Q3 2018 D% Segment performance affected by increasing market prices of Revenue 4,294* 5,552 +29% gas and crude oil. Operating expenses (excl. D&A) -4,574* -6,021 +32% Comments: Revenue from gas sales (including the negative EBITDA -280 -469 -68% effect of hedging tra
Slide 8: Segments – Distribution
Segments – Distribution [PLNm] Q3 2017 Q3 2018 D% Segment’s performance affected by lower tariff and Revenue 1,085 1,084 0% net revenue from balancing. Operating expenses (excl. D&A) -504 -505 0% EBITDA 581 579 0% Comments: Depreciation and amortisation -228 -231 +1% Gas distribution volumes stable
Slide 9: Segments – Generation
Segments – Generation Key contributors to the segment’s [PLNm] Q3 2017 Q3 2018 D% performance include higher Revenue 262 302 +15% electricity sales volumes, higher electricity prices Operating expenses (excl. D&A) -240 -268 +12% and higher cost of raw materials. EBITDA 22 34 +55% Depreciation and am
Slide 10: Contact details
Contact details More information Marcin Piechota Head of the Investor Relations Division Phone: +48 22 589 43 22 Mobile: +48 885 889 890 Email: marcin.piechota@pgnig.pl Piotr Gałek Investor Relations Specialist Phone: +48 22 589 48 46 Mobile: +48 723 235 652 Email: piotr.galek@pgnig.pl Aleksander Ku
Slide 11: Appendices
Appendices: 1. Effect of changes in IFRS on performance in 9M 2018 2. 9M 2018 financial highlights 3. Gas sales and imports structure 4. Operating expenses 5. Debt and sources of funding 6. Statement of financial position, statement of cash flows, financial ratios and workforce 7. Production and sal
Slide 12: Changes in the presentation of services under IFRS 15
Changes in the presentation of services under IFRS 15 Effect of the implementation of IFRS 15 on the consolidated The Group has applied the requirements of new statement of profit or loss IFRS 9 and IFRS 15 with the use of a modified retrospective approach, effective as of January 9M 2017 9M 2017 1s
Slide 13: Effects of presentation changes under IFRS 15 – segments
Effects of presentation changes under IFRS 15 – segments Without presentation changes under IFRS 15 9M 2017 9M 2018 The Trade and Storage Trade and Storage segment acts as a agent with Revenue 20,870 24,077 respect to gas distribution, gas Operating expenses (excl. D&A) -21,060 -24,575 transmission
Slide 14: 9M 2018 financial highlights
9M 2018 financial highlights Group’s EBITDA by segment in 9M 2017 vs 9M 2018 [PLNm] 9M 2017 9M 2018 D% PLNm Revenue 24,777* 28,481 +15% 4500 3943 4000 Operating expenses (excl. D&A) -19,521* -22,712 +16% 3500 3037 3000 2500 EBITDA 5,256 5,769 +10% 1964 1963 2000 1500 Depreciation and amortisation -1
Slide 15: Gas sales and imports structure
Gas sales and imports structure Imports of natural gas to Poland Gas sales outside the PGNiG Group by company A marked increase in the LNG Q3 2018 share of LNG in Q3 2018 gas 19% [mcm] Q3 2017 Q3 2018 D% imports. PGNiG Group: 4,594 5,114 +11% Five gas tankers were 14% Western and southern direction
Slide 16: Operating expenses in Q3 2018 vs Q3 2017
Operating expenses in Q3 2018 vs Q3 2017 [PLNm] Q3 2017 Q3 2018 D% Comments: PLN 1,056m (+34%) yoy increase in the cost of gas Cost of gas sold -3,072 -4,129 +34% sold, due to higher prices of oil and gas. Higher yoy cost of dry wells and seismic surveys (PLN Fuels for heat and power generation -77
Slide 17: Debt and sources of funding
Debt and sources of funding Comments: On December 21st 2017, due to a mismatch Sources of funding (as at September 30th 2018) between its investment programme and the PLNm PLN 1.5bn bond programme of July 4th 2012, PGNiG TERMIKA entered into agreements available used terminating the bond programme.
Slide 18: Statement of financial position, statement of cash flows, financial ratios and workforce
Statement of financial position, statement of cash flows, financial ratios and workforce Group’s statement of financial position Workforce (as at September 30th 2018)* (as at September 30th 2018) thousand Non-current Current Equity 40 PLNm Other segments Generation Distribution Trade & Storage Explo
Slide 19: Production and sales volumes
Production and sales volumes NATURAL GAS PRODUCTION, PGNIG Group [mcm] 9M 2018 Q3 2018 Q2 2018 Q1 2018 FY 2017 Q4 2017 9M 2017 Q3 2017 Q2 2017 Q1 2017 FY 2016 Q4 2016 Q3 2016 HIGH-METHANE GAS (E) 1,361 436 461 464 1,863 461 1,402 459 469 474 1,919 473 449 including in Poland 960 323 314 323 1,315 33
Polskie Górnictwo Naftowe i Gazownictwo — Q3 2018 Earnings Presentation on 6ix