Tatneft-3 · RUS:TATN
Tatneft-3 — PJSC Tatneft — Investor Presentation (June 2020)
22 slides from Tatneft-3's investor presentation, Jun 18, 2020
Slide 1: Tatneft Group Presentation
TATNEFT GROUP PRESENTATION Virtual Meeting with Investors and Analysts June 18, 2020
Slide 2: Important Forward-Looking Statement and Disclaimer
2 IMPORTANT FORWARD-LOOKING STATEMENT AND DISCLAIMER THIS INFORMATION IS PRESENTED TO YOU FOR INFORMATIONAL PURPOSES ONLY AND MAY NOT BE COPIED IN ANY FORM OR MADE AVAILABLE TO THIRD PARTIES, OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE WHATSOEVER. FAILURE TO COMPLY WITH THIS REQUIREMENT MAY B
Slide 3: Nail Maganov, General Director
3 Nail MAGANOV General Director, PJSC TATNEFT Member of the Board of Directors
Slide 4: Tatneft Group
4 TATNEFT GROUP PROVED RESERVES CAPITALIZATION UPSTREAM DOWNSTREAM RETAIL BLN BLN 6.679 BBLS 28.44 USD * By estimates of Miller and Lents. Ltd as of 01.01.2020г. OIL PRODUCTION OIL REFINING SERVICE STATIONS REVENUE* BLN EBITDA** BLN 581.5 thous. bbls per day 206.7 thous. bbls per day 802 Service Sta
Slide 5: Decisive Actions During the Pandemic
5 DECISIVE ACTIONS DURING THE PANDEMIC GOALS OBJECTIVES RESULT • Measures to protect clients, employees, contractors • Protection life and health LIFE AND HEALTH • Production of personal protective equipment and • Morbidity rate control OF PEOPLE antiseptics • Stable work of hospitals and health car
Slide 6: Market Value
6 6 MARKET VALUE TATNEFT ADRs vs. Urals (dated) dynamic ATAD (LSE) Urals (dated) 21.12.19 10.01.20 30.01.20 19.02.20 10.03.20 30.03.20 19.04.20 9.05.20 29.05.20 18.06.20 8.07.20
Slide 7: Crude Oil Production in 2020
7 CRUDE OIL PRODUCTION IN 2020 Jan-May 2020 Actual Crude Production Current Production Forecast for 2020 (thousand barrels) 80.5 mln barrels (-8.2% YoY) Oil production cuts under the OPEC+ agreement (average daily production rate) MONTHS 2020 -20% June Dec. Aug. Sep. Feb. Nov. Mar. Jan. May Oct. Apr
Slide 8: The Republic of Tatarstan - The Resource Potential
8 THE REPUBLIC OF TATARSTAN - THE RESOURCE POTENTIAL Proved reserves (the Group)* OIL FIELDS IN TATARSTAN 3.2 bln bbls developed producing HVO fields are highlighted in red 2.5 bln bbls developed non-producing 1 bln bbls undeveloped 94 conventional oil fields, +14 highly-viscous oil fields and field
Slide 9: Efficient Asset Management
9 EFFICIENT ASSET MANAGEMENT DIGITAL TWINS OF OIL FIELDS >31 th. >6 th. >112 mln wells frac jobs bbls Operating Well Stock competed Incremental Production producers – 20684 over 10 years over 10 years 2009 to 2019 injectors – 10604 2009 to 2019 (as of 01.04.2020) >20 th. 68 years 285 mln EOR of expe
Slide 10: Oil Refining in 2020
10 OIL REFINING IN 2020 719.8 th. tonnes of other feedstock 12 mln tonnes of petroleum products, incl. diesel fuel (3.9 mln tonnes) middle distillates (1.9 mln tonnes) motor gasolines (1.5 mln tonnes) 11 456 th. tonnes of crude oil
Slide 11: TANECO Development
11 TANECO DEVELOPMENT Construction Main process units in operation in progress CDU-VDU-7 & CDU-VDU-6 Exp. Completion (15.3 mln tonnes) 2020 2021 Hydrocracking (2.9 mln tonnes) Catalytic DCU-2 cracking Diesel fuel / naphtha / kerosene TARGETS (2 mln (1.1 mln hydrotreatment tonnes) tonnes) (1.6 mln to
Slide 12: ESG: PJSC Tatneft Supports the Sustainable Development Goals
12 ESG PJSC TATNEFT SUPPORTS THE SUSTAINABLE DEVELOPMENT GOALS The UN Global Compact Participant since 2019
Slide 13: Climate Action
13 CLIMATE ACTION Total greenhouse gas emissions per thous. tonnes of oil equivalent of hydrocarbon production • Historically, significant actions to reduce emissions • Per unit of output greenhouse gas emissions are lower compared to t CO2 many rivals 1000 • Corporate governance system with regard
Slide 14: Rezeda Gaifullina
14 Rezeda GAIFULLINA Head of Economics Department, PJSC TATNEFT
Slide 15: Financial Performance
15 FINANCIAL PERFORMANCE Per unit revenue and oil price ($) EBITDA and net profit ($, mln) 67.8 70 71 1185 1345 1239 58 905 668 64 61.3 61.4 839 307 47.6 380 2Q2019 3Q2019 4Q2019 1Q2020 2Q2019 3Q2019 4Q2019 1Q2020 Urals Crude Revenue per bbl produced EBITDA (adj.) Net profit Main unit costs ($ per b
Slide 16: Cash Flows
16 CASH FLOWS Cash Flows and Net Debt Trends ($, mln) 2000 1657 1500 1318 1108 1000 568 691 736 544 500 260 372 312 262 340 279 148 0 3 Q 2019 4 Q 2019 1 Q 2020 2 Q 2019 -500 -758 -690 -1000 OCF CAPEX FCF Net Debt Figures for ОСF, CAPEX, FCF are translated at the average exchange rate of ruble to US
Slide 17: Dividends
17 DIVIDENDS Free Cash Flow, ~100% consolidated free cash flow (i.e. 96% BLN RUB 147,7 152,8 of net profit under the Russian Accounting Standards) 105,3 for 2019 has been already paid as dividends 47,6 45,7 Quick return of unused funds to the shareholders 2015 2016 2017 2018 2019 One of the highest
Slide 18: Nurislam Syubaev
18 Nurislam SYUBAEV Deputy General Director for Strategic Planning, PJSC TATNEFT Member of the Board of Directors
Slide 19: Tatneft Group Strategy 2030
19 TATNEFT GROUP STRATEGY COMPANY’S MARKET VALUE GROWTH STRENGTHENING OF THE COMPANY’S POSITION AS ONE OF THE INDUSTRY LEADERS BY GROWTH RATES IN BUSINESS AND FINANCIAL PERFORMANCE KEY PRIORITIES OF 2030-STRATEGY STRATEGY 2030 ARE CRUCIAL IN CURRENT CONDITIONS approved by the BoD in September 2018 K
Slide 20: Strategy - Current Objectives
20 STRATEGY – CURRENT OBJECTIVES USING UNLOCKED POTENTIAL FOR EFFICIENCY GROWTH OF THE COMPANY’S EXISTING ASSETS • REDUCING OPERATING COSTS WITH A FOCUS ON LONG-TERM EFFECT • AVAILABLE CAPACITY TO RAMP-UP OIL PRODUCTION WHEN OPEC+ 1 Exploration & Production PRODUCTION RESTRICTIONS ARE REMOVED THROUG
Slide 21: Strategy - Long-Term Goals
21 STRATEGY– LONG-TERM GOALS BREAKING BUSINESS GROWTH BARRIERS VIA MAXIMUM USE OF EXISTING STRONG COMPETENCES LONG-TERM HORIZON • Entering projects allowing to increase • Continued development of total shareholder return over the long petrochemical segment which has run (long term growth of free cas
Slide 22: Thank You for Your Time and Attention
THANK YOU FOR YOUR TIME AND ATTENTION!