Slide 1: OMV Q2 2018 Conference Call
OMV Q2 2018 Conference Call Rainer Seele Chairman of the Executive Board and CEO August 2, 2018 OMV Aktiengesellschaft
Slide 2: Disclaimer
Disclaimer This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook,” “expect,” “anticipate,” “target,” “estimate,” “goal,” “plan,” “intend,” “may,” “objective,” “will” and similar terms or by their context. These forward-look
Slide 3: Macro environment – Higher oil prices, lower refining margins
Macro environment – Higher oil prices, lower refining margins Oil prices USD/bbl OMV indicator refining margin USD/bbl 80 74 8 7.0 67 61 5.7 60 50 52 6 5.2 61 6.0 4.8 56 58 40 46 47 4 Average Brent price 20 Average realized crude price 2 0 0 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q2/17 Q3/17 Q4/17 Q1/18 Q2/1
Slide 4: Key messages
Key messages OPERATIONAL PORTFOLIO PERFORMANCE COST DISCIPLINE MANAGEMENT Clean CCS Operating Result at Production cost at USD 7.6/boe Closed Abu Dhabi acquisition EUR 726 mn Ongoing Capex discipline Signed agreement to divest the Production of 419 kboe/d power plant in Turkey Petrobrazi refinery tu
Slide 5: Clean CCS Operating Result improved versus Q2 2017
Clean CCS Operating Result improved versus Q2 2017 Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Corporate & Others & Consolidation EUR mn Downstream 818 726 1.15 662 377 0.86 0.83 438 457 259 282 272 411 376 338 Q2/17 Q
Slide 6: Upstream – Strong earnings increase due to higher sales volumes and prices
Upstream – Strong earnings increase due to higher sales volumes and prices Clean Operating Result Q2 2018 vs. Q2 2017 EUR mn Realized oil price increased by 32% +198 +76% Realized gas price decreased by 16% 457 Realized hedging loss in Q2/18 of EUR (124) mn 16 (vs. EUR 17 mn in Q2/17) 105 Ne
Slide 7: Downstream – Lower result due to weaker margin environment and OMV Petrol Ofisi divestment
Downstream – Lower result due to weaker margin environment and OMV Petrol Ofisi divestment Clean CCS Operating Result Q2 2018 vs. Q2 2017 EUR mn Oil (72) -73 Lower refining margin at USD 5.2/bbl (-13%) 411 Lower ethylene/propylene net margins (-17%); lower butadiene margins 82 41 44 338 Negati
Slide 8: Organic free cash flow after dividends of EUR 0.7 bn
Organic free cash flow after dividends of EUR 0.7 bn Sources and uses 1 in H1 2018 EUR bn Strong cash flow from operating activities of EUR 2.3 bn (H1/17: EUR 1.9 bn) 3.0 Borealis dividend of EUR 252 mn (H1/17: EUR 270 mn) (0.5) Cash inflow from disposals of EUR 166 mn mainly from 2.5 Pakistan
Slide 9: Strong cash position and low gearing ratio
Strong cash position and low gearing ratio Net debt development EUR bn Cash position of EUR 2.9 bn 4.0 OMV called and redeemed the EUR 750 mn hybrid bond issued in 2011 at its nominal value 3.0 2.8 plus interest on April 26, 2018 2.3 2.0 A new hybrid bond of EUR 500 mn with a substantially low
Slide 10: Outlook 2018
Outlook 2018 2017 Outlook 2018 Brent oil price (USD/bbl) 54 70 (Previous 68) CEGH gas price (EUR/MWh) 18 >18 (Previous 18) Total hydrocarbon production (kboe/d) 348 >420 OMV indicator refining margin (USD/bbl) 6 <6 Ethylene/propylene net margin (EUR/t) 427 425 Utilization rate refineries (%) 90 >90
Slide 11: OMV Aktiengesellschaft
OV OMV OMV Aktiengesellschaft ouv OMV
Slide 12: BACKUP
BACKUP OMV Aktiengesellschaft
Slide 13: Group Operating Result increased substantially due to lower special items than in Q2 2017
Group Operating Result increased substantially due to lower special items than in Q2 2017 Operating Result Net income attributable to Earnings Per Share EUR mn stockholders EUR Upstream Corporate & Others & Consolidation EUR mn Downstream 899 406 1.24 602 203 0.62 478 363 417 318 169 (857) (694) (1,
Slide 14: Upstream – Higher prices almost offset by lower sales volumes
Upstream – Higher prices almost offset by lower sales volumes Clean Operating Result Q2 2018 vs. Q1 2018 EUR mn Realized oil price increased by 4% +19 Realized gas price decreased by 2% Realized hedging loss in Q2/18 of EUR (124) mn 78 65 457 (vs. EUR (68) mn in Q1/18) 438 6 Positive FX impa
Slide 15: Downstream – Financial performance impacted by seasonality of gas business and Petrobrazi refinery turnaround
Downstream – Financial performance impacted by seasonality of gas business and Petrobrazi refinery turnaround Clean CCS Operating Result EUR mn Q2 2018 vs. Q1 2018 (38) Oil 376 Higher refining margin (+9%) 3 60 338 Lower ethylene/propylene net margins (-9%) 19 Lower refinery utilization rate (
Slide 16: Operational KPIs
Operational KPIs Hydrocarbon production Refined product sales 1 Retail sales 1 kboe/d mn t mn t 437 419 6.94 2.52 339 4.98 4.53 1.60 1.41 Q2/17 Q1/18 Q2/18 Q2/17 Q1/18 Q2/18 Q2/17 Q1/18 Q2/18 Hydrocarbon sales Refinery utilization rate Natural gas sales mn boe % TWh 38.5 93 33.0 35.7 77 77 26.0 28.5
Slide 17: Strong balance sheet
Strong balance sheet Balance Sheet Jun 30, 2018 vs. Mar 31, 2018 Highlights EUR bn Assets 33.5 33.5 Tangible and intangible assets increased to EUR 17.2 32.4 32.4 bn following the acquisition of the 20% stake in the two Abu Dhabi oil fields Stockholders’ equity 11.2 10.8 Trade receivables decrea
Slide 18: Sensitivities of OMV Group in 2018
Sensitivities of OMV Group in 2018 Annual impact 1 Clean CCS Operating Operating cash flow in EUR mn Result 2 Brent oil price (USD +1/bbl) +45 +30 OMV realized gas price (EUR +1/MWh) +125 +95 CEGH/NCG gas price 3 (EUR +1/MWh) +40 +35 OMV indicator refining margin (USD +1/bbl) +105 +80 Ethylene/propy