Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q3 2015 Earnings Presentation
26 slides from Omv Petrom Sa's earnings presentation, Nov 5, 2015
Slide 1: OMV Petrom results January – September and Q3 2015
OMV Petrom results January – September and Q3 2015 November 5, 2015
Slide 2: Content
Content January - September highlights Financial overview Outlook 2015 Note: All the figures refer to OMV Petrom Group (herein after also referred to as “the Group”). The financials represent OMV Petrom Group’s consolidated results prepared according to IFRS (Q3/15 financials are unaudited). The fin
Slide 3: January – September highlights
January – September highlights Mariana Gheorghe, CEO
Slide 4: Business environment
Business environment Latest available data International environment Romania: solid macroeconomics Oil price fell by 48% in 9m/15 vs Q2/15 GDP rose by 3.8% yoy (Q1/15: up 9m/14 4.1% yoy) Oil demand and supply in Europe: 2015 GDP growth: IMF3 estimate at 3.4% demand was nearly flat (+0.3% yoy
Slide 5: Dynamics of the Romanian energy sector
Dynamics of the Romanian energy sector Demand 1 Fuels2 +6%; Gas -3%; Power +3% Demand and prices Prices 9m/15 vs 9m/14 Urals: -48% Gas: deregulation for HH3 continued Power 4: +11% Gas and Power: undergoing structural changes Price liberalization: NHH5 completed; HH continues (deadli
Slide 6: Financial performance in 9m/15
OMV Petrom Financial performance in 9m/15 Clean CCS EBIT in RON mn Upstream ► Significantly impacted by lower oil prices 4,176 ► Broadly flat production following previous investments and discoveries (net of Totea and Mamu wells, production would have dropped by 4% yoy) ► Ongoing projects to increas
Slide 7: Adjustment of our business in 9m/15
OMV Petrom Adjustment of our business in 9m/15 Measures Deliverables No compromise on safety Improving Upstream HSSE performance ► Lowest LTIR1 in OMV Petrom’s history CAPEX adjustment Reduction of Group CAPEX Prioritize investments ► Group CAPEX down 33% yoy Reduce/cut/delay projects ► 13 FRDs in a
Slide 8: Financial overview
Financial overview Andreas Matje, CFO
Slide 9: Economic environment
Economic environment Oil price (USD/bbl) and FX (USD/RON) OMV Petrom Indicator refining margin (USD/bbl) 9.87 120 101 4.5 10 3.98 90 4.0 5.11 5 60 3.33 50 3.5 30 3.0 0 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Avg Urals price (left scale) Avg USD/RON (right scale) Gas prices (EUR/M
Slide 10: Q3/15 overview
Q3/15 overview Clean CCS EBIT (RON mn) Average Urals crude price at USD 49.75/bbl -32% 1,552 RON weaker than USD by 20% yoy Group production at 174 kboe/d 1,061 1,433 Strong refining margins 416 Retail sales volumes up by 7% yoy Upstream 560 Downstream Oil Gas sales volumes of 10.85 TWh
Slide 11: Upstream production assets impairments in Q3/15
Upstream production assets impairments in Q3/15 Oil price and EUR-USD FX rate assumptions 140 1.35 1.35 1.4 1.30 120 1.15 1.15 1.15 1.15 1.15 1.2 105 105 100 1.0 90 85 80 80 0.8 70 70 60 55 55 0.6 40 0.4 2015 2016 2017 2018 2019 onwards Brent price in USD/bbl (left scale) Average EUR-USD FX-rate (ri
Slide 12: Special items and CCS effect
Special items and CCS effect Q3/15 (RON mn) in RON mn Q3/15 Q3/14 Clean CCS EBIT 1,061 1,552 1,061 CCS gains/ (losses) (194) (125) Clean EBIT 867 1,427 (194) Personnel related costs (41) (41) (75) Other impairments (786) (4) Other (5) 3 (786) Total special items (833) (75) Reported EBIT 34 1,352 34
Slide 13: Clean CCS net income in Q3/15
Clean CCS net income in Q3/15 Clean CCS net income attributable in RON mn Q3/15 Q3/14 ∆ to stockholders (RON mn) EBIT 34 1,352 (97)% Financial result (83) (76) 9% -31% Income tax 3 (256) n.m. 1,189 Effective tax rate 5% 20% (73)% Net income (46) 1,020 n.m. 820 Minorities (2.84) (0.42) n.m. Net incom
Slide 14: Cash flow
Cash flow 9m/15 (RON mn) in RON mn 9m/15 9m/14 ∆ Profit before taxation 1,253 3,187 (61)% Depreciation, amortization and 3,509 2,945 19% 177 (599) impairments Net interest received/ (paid) 116 (35) n.m. Tax on profit paid (599) (653) (8)% 3,509 Other (277) 106 n.m. (3,883) Sources of funds 4,002 5,5
Slide 15: CAPEX and EBITDA
CAPEX and EBITD 9m/15 (RON mn) Key investment projects 4,823 Upstream: Field redevelopment executions, workover activities, drilling as well as investments related to Neptun Deep project 2,997 3,229 Downstream Oil: 3+3 terminals strategy, efficiency, legal and environmental projects 2,790 1,473 4 15
Slide 16: Upstream – Clean EBIT
Upstream – Clean EBIT Q3/15 vs Q2/15 (RON mn) Q3/15 vs Q3/14 (RON mn) 1,433 (1,138) 551 257 416 416 (98) 71 (56) 211 (34) (366) Q2/15 Realization Volume Exploration Other Q3/15 Q3/14 Realization Volume Exploration Other Q3/15 expenses expenses ► Decreased oil price and sales volumes ► Oil price down
Slide 17: Upstream – KPIs
Upstream – KPIs Hydrocarbon production (kboe/d) OPEX (USD/boe) Oil and NGL Gas 178 182 184 181 174 -20% 16.37 17.02 14.23 13.16 13.11 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 ► Group hydrocarbon production dropped by ► Production costs on a downward trend 3% vs Q3/14 due to planne
Slide 18: Upstream – Main operating expenses reduced to a new base
Upstream – Main operating expenses reduced to a new base USD/boe 9m/15 vs 9m/14 -22% 17.36 ► FX effect: stronger USD vs RON ► Costs for materials1 down 14% (electricity and 13.51 fuel) ► Personnel costs1 down 8% (lower headcount) ► Other : lower services costs and reduced construction tax partly off
Slide 19: Downstream Clean CCS EBIT
Downstream Clean CCS EBIT Q3/15 vs Q3/14 (RON mn) 503 51 197 256 Q3/14 Downstream Oil Downstream Gas Q3/15 Downstream Oil: Significantly higher OMV Petrom indicator refining margin driven by lower cost for crude; increased retail sales volumes Downstream Gas: Higher segment sales, lower storage
Slide 20: Downstream Oil – KPIs
Downstream Oil – KPIs Refinery utilization rate 1 (%) 103 101 94 86 81 Q3/15 vs Q3/14 ► Refinery utilization rate at 94% ► Retail sales volumes increased by 7% Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 reflecting improved product demand ► Indicator refining margin increased to Retail sales volumes (mn t) USD 9.
Slide 21: Downstream Gas
Downstream Gas Gas sales (TWh) 16.7 14.3 10.6 10.9 8.7 Q3/15 vs Q3/14 ► Gas volumes up by 25%, due to higher off-take by the Brazi power plant; storage level down to 2.7 TWh (Q3/14: 5.9 TWh) Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 ► Net electrical output significantly increased on the back of positive spark s
Slide 22: Outlook 2015
Outlook 2015 Mariana Gheorghe, CEO
Slide 23: Outlook 2015
Outlook 2015 Oil price: Brent average between USD 50-60/bbl International market Refining margin: Better in 2015 yoy; in Q4/15, expected to decline from 9m/15 level Fuels: Demand to be supported by low prices; increased competition Romanian Gas: Demand lower yoy, increased competition and pressure o
Slide 24: Closing remarks
Closing remarks ► Continued delivery on promises regarding CAPEX and OPEX adjustments, within the current market environment ► Maximize integrated value ► Neptun Deep exploration to continue through the end of the year ► Engagement with stakeholders on taxation and regulatory framework 23 | OMV Petr
Slide 25: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, constituting or forming part of, any actual offer to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares issued by the Company or any
Slide 26: Contact Investor Relations
Contact Investor Relations OMV Petrom Investor 2016 Financial Calendar Relations Feb 18: Q4 and FY 2015 results Apr 26: Annual General Meeting of Shareholders May 11: Q1 2016 results Tel.: +40 372 088406 Aug 10: Q2 and HY 2016 results E-mail: investor.relations.petrom@petrom.com Homepage: www.omvpet