Slide 1: OMV Petrom Q4/17 Results
Cover option 1: Insert a cover picture and align grouped text OMV Petrom freely on page, (28pt) Q4/17 Results Place, xx. Month 2013 (16pt) February 21, 2018 Mariana Gheorghe, CEO
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, This presentation may contain forward-looking statements. These statements and should not be construed as, constituting or forming part of, any actual reflect the Company’s current knowledge and its expe
Slide 3: Key messages Q4/17
Key messages Q4/17 Free cash flow of RON 664 mn Upstream: production 165 kboe/d, -3% yoy; OPEX USD 12.4/boe, +7% yoy Clean CCS Operating Result at RON 573 mn Downstream Oil: refining Clean CCS EPS up 65% yoy margins USD -1.0/bbl yoy; retail sales volumes +4% yoy Dividend proposal1: RON 0.02/share, 3
Slide 4: Romanian environment
Romanian environment Macroeconomic environment Fiscal framework 2017 GDP growth1: 7% yoy; Supplementary gas taxation5 extended Q4/17 GDP growth: 7% yoy Tax on special constructions CPI annual inflation: 3.3% end- eliminated starting January 1, Dec; 12-month average: 1.3% 2017 Demand: Engagement with
Slide 5: Economic environment
Economic environment FX (RON/USD) Oil price (USD/bbl) 4.25 61 4.17 4.14 61 54 52 49 50 52 51 3.92 48 3.90 48 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Avg RON/USD Avg Urals price in USD/bbl Avg Brent price in USD/bbl Gas prices (EUR/MWh)1 Power prices in Romania (EUR/MWh)1 19.5 67
Slide 6: Upstream KPIs: OPEX/boe impacted by one-offs
Upstream KPIs: OPEX/boe impacted by one-offs OPEX1 Key drivers Q4/17 vs. Q4/16 (USD/boe) +7% +7% 12.4 Higher OPEX, in USD/boe terms, +7%: 11.6 10.5 10.4 10.2 One-off personnel-related expense, USD 1.2/boe Unfavorable FX development, USD 0.7/boe Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Abolition of tax on speci
Slide 7: Downstream Oil KPIs: Q4/17 decline of refining margins and strong retail sales
Downstream Oil KPIs: Q4/17 decline of refining margins and strong retail sales OMV Petrom Indicator refining margin Key drivers Q4/17 vs. Q4/16 (USD/bbl) 8.51 8.75 Refining margin -14% yoy 7.58 7.14 6.16 Refinery utilization rate at 91% Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Retail sales volumes (mn t) +4% +
Slide 8: Downstream Gas KPIs: significantly higher net electrical output
Downstream Gas KPIs: significantly higher net electrical output Gas sales volumes Key drivers Q4/17 vs. Q4/16 (TWh) -5% -5% 15.50 14.17 11.79 13.41 Lower gas volumes to third parties in the 10.70 context of decreased demand Larger volumes off-taken by Brazi power plant Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
Slide 9: Cost efficiency and operational excellence
Cost efficiency and operational excellence Total operating cost1 Key drivers 2017 vs. 2015 (RON mn) -500 -500 -380 -380 Upstream cost base reduced with 22% Downstream Direct Cash Costs: reduced maintenance costs, energy efficiency improvements and 3rd party contracts renegotiation, -11% Corporate Co
Slide 10: OMV Petrom Q4/17 Results
Cover option 1: Insert a cover picture and align grouped text OMV Petrom freely on page, (28pt) Q4/17 Results Place, xx. Month 2013 (16pt) February 21, 2018 Stefan Waldner, CFO
Slide 11: Cash Flow highlights
Cash Flow highlights Operating Cash Flow 2017 OCF1 up due to higher Operating Result +34% (RON bn) 5.95 Q4/17 NWC2: cash outflow RON 117 mn +41% 4.45 1.07 1.51 2017 NWC2: cash outflow RON 199 mn Q4/16 Q4/17 2016 2017 Investing Cash Flow (net outflow, RON bn) -16% 2017 CAPEX higher 15% yoy 2.90 2.45
Slide 12: Income Statement highlights
Income Statement highlights Clean CCS Operating Result Clean CCS Operating Result reflects: (RON bn) +92% ► Market conditions (prices, demand) 3.27 +26% ► Higher exploration expenses 1.70 0.45 0.57 ► Insurance revenues related to power segment Q4/16 Q4/17 2016 2017 Clean CCS Net Income1 Clean CCS Ne
Slide 13: Special items and CCS effect
Special items and CCS effect Q4/17 Reversal of work litigation provision RON mn Q4/17 Q4/16 2017 2016 Gain from forward contracts for electricity Clean CCS Operating Result 573 453 3,273 1,700 Reversal of restructuring provision CCS effects: Inventory holding 103 75 102 -98 gains / (losses) Impairme
Slide 14: Upstream Clean Operating Result supported by higher realized prices
Upstream Clean Operating Result supported by higher realized prices Upstream Clean Operating Result Key drivers Q4/17 vs. Q4/16 (RON mn) Higher realized oil prices, +27% -98 317 -121 340 -4 Higher exploration expenses 246 Sales volumes -3% Production costs impacted by one-off effects Q4/16 Realizati
Slide 15: Downstream Clean CCS Operating Result: improved performance in both segments
Downstream Clean CCS Operating Result: improved performance in both segments Downstream Clean CCS Operating Result Key drivers Q4/17 vs. Q4/16 (RON mn) 360 Higher sales revenues following increase in 36 demand 292 31 Improved non-oil business contribution 319 288 Lower refining margins 41 5 Q4/16 Q4
Slide 16: CAPEX and E&A
CAPEX and E&A Group CAPEX incl. capitalized E&A CAPEX incl. capitalized E&A (RON bn) 2017 at RON 3.0 bn: +25% +25% 64 new development wells and sidetracks drilled +15% +15% 3.7 >1,000 workovers performed 3.0 2.6 2018 at RON 3.7 bn: Drilling >100 development wells and sidetracks ~1,000 workovers Refi
Slide 17: 2017 Dividend proposal: EUR 248 mn
2017 Dividend proposal: EUR 248 mn DPS1 2017: RON 0.02 Dividend yield2 2017: 7% EUR 1.1 bn returned to shareholders in the past five years 2012-2016 Payout ratio and Dividend yield 2017 DPS1: RON 0.02 Payout ratio, % EUR mn 6.5 6.6 Dividend yield 2 , % 545 5.7 2.7 248 81 40 45% 36 30 0 2012 2013 201
Slide 18: Outlook 2018
Outlook 2018 Indicators Actual 2017 Assumptions/Targets 2018 Brent oil price USD 54/bbl USD 60/bbl Refining margin USD 7.75/bbl <USD 7.75/bbl Production 168 kboe/d ~ -4% yoy1 CAPEX RON 3.0 bn RON 3.7 bn FCF after dividends RON 2.7 bn positive 1 Not including portfolio optimization initiatives 18 | O
Slide 19: OMV Petrom Q4/17 Results
Cover option 1: Insert a cover picture and align grouped text OMV Petrom freely on page, (28pt) Q4/17 Results Place, xx. Month 2013 (16pt) February 21, 2018 Mariana Gheorghe, CEO
Slide 20: First progress towards achieving our 2021+ strategic objectives
First progress towards achieving our 2021+ strategic objectives Sustainable access to energy for everyday modern life Drilling campaign ramped-up Operational efficiency increased Enhancing competitiveness Costs optimized Portfolio streamlining initiated Strong performance and attractive return Devel
Slide 21: OMV Petrom
GA OMV Petrom