Repsol Sa · BME:REP
Repsol Sa — Q3 2020 Earnings Presentation
15 slides from Repsol Sa's earnings presentation, Oct 29, 2020
Slide 1: Repsol Conference Call Third Quarter 2020 Results
REPSOL CONFERENCE CALL Third Quarter 2020 Results Josu Jon Imaz, CEO 29 October 2020
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2020 This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to tr
Slide 3: Index
Index 01. Market environment 02. Key messages 03. Operational highlights 04. Financial results 05. Resilience Plan 2020 delivery and outlook Repsol 3Q20 Results 3
Slide 4: Higher oil and gas prices, challenging refining environment
Market environment Higher oil and gas prices, challenging refining environment Brent Henry Hub ($/bbl) ($/Mbtu) 62.0 63.1 2.5 2.2 2.0 2.0 50.1 42.9 1.7 29.6 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Refining Margin Indicator Exchange Rate ($/bbl) ($/€) 5.5 5.6 4.7 1.17 3.0 1.11 1.11 1.10 1.1
Slide 5: Strong cash performance demonstrates strength of Resilience Plan
Key messages Strong cash performance demonstrates strength of Resilience Plan Strong CFFO in very • CFFO 3Q20: €1.3 Bn (vs. €0.9 Bn in 1H20) challenging scenario • Organic FCF 3Q20: €0.8 Bn (€0.5 Bn in Upstream division) Resilience Plan delivering • On track to surpass the €2.2 Bn of targeted saving
Slide 6: Upstream: adapting operations to current environment
Operational highlights Upstream: adapting operations to current environment Upstream production (kboed) Capex flexibility (M€ operating investments) -50 553 -44 2 -1 -71% 163 711 616 3Q19 3Q20 Organic FCF delivery (M$) 3Q19 Europe & Latin America North Asia, Russia 3Q20 465 +120% Africa America & Re
Slide 7: Industrial: challenging Refining, resilient Chemicals
Operational highlights Industrial: challenging Refining, resilient Chemicals • Middle-distillate spreads at • International margins impacted in narrowest level in more than 20 years 3Q20 by recovery of naphtha price Refining Chemicals • All refineries under operation. Run- • Feedstock advantage for
Slide 8: Further progress in the decarbonization of industrial operations
Operational highlights Further progress in the decarbonization of industrial operations 1st batch of biojet FID for advanced biofuels plant Repsol produces in Puertollano airplane Repsol to build Spain's first low emissions A Coruña Bilbao biofuel for the first time in Spain: advanced biofuels plant
Slide 9: Commercial and Renewables: higher contribution despite investing phase
Operational highlights Commercial and Renewables: higher contribution despite investing phase Mobility • Sales in Service Stations -13% 3Q20 Lubricants, • International expansion vs. 3Q19 Asphalts and supports solid performance • Gasoline and diesel demand recovery: Specialties ~10% below 2019 level
Slide 10: 3Q20 and 9M20 Results
Financial results 3Q20 and 9M20 Results Results (€ Million) Q3 2020 Q2 2020 Q3 2019 9M 2020 9M 2019 Upstream 51 (141) 218 0 864 Industrial (67) 8 223 229 671 Commercial and Renewables 169 42 153 332 418 Corporate and Others (146) (167) (72) (365) (316) Adjusted Net Income 7 (258) 522 196 1,637 Net I
Slide 11: Resilience Plan delivering above original targets
Resilience Plan 2020 delivery Resilience Plan delivering above original targets Original target 9M20 captured New 2020 estimate Opex savings €350 M > €350 M €500 M Self-financed Resilience Plan 2020 expected to exceed the €2.2 Bn of Capex savings €1,000 M ~ €1,000 M €1,200 M initially targeted cash
Slide 12: Updated FY2020 outlook
Outlook Updated FY2020 outlook Production 640-645 kboed • Libya producing from 4Q20 Refining Margin Indicator 2.2-2.5 $/bbl • Uncertain demand recovery • In line with 2019 with the positive effect Net debt ≤ €3.3 Bn of hybrid bonds transactions of 2Q20 -3% Carbon Energy • vs. 2016 baseline Intensity
Slide 13: New Strategic Plan 2021-2025 Repsol's Capital Markets Day
Outlook New Strategic Plan 2021-2025 Repsol’s Capital Markets Day (Thursday 26 November) Agenda (CET) • 12.00 – 13:30 h CEO Investor presentation • 13:30 – 14:00 h Break • 14:00 – 15.00 h Business presentations Upstream Strategy Tomas Garcia Blanco, EMD Exploration and Production Customer Centric St
Slide 14: Strategic progress despite negative impact of COVID-19
Conclusions Strategic progress despite negative impact of COVID-19 Delivering on the objectives • Prioritizing health, safety and continuity of operations of Resilience Plan 2020 • On track to surpass the €2.2 Bn cash savings objective in 2020 • CFFO in 3Q20 > 1H20 despite challenging scenario Stron
Slide 15: Repsol Conference Call Third Quarter 2020 Results
REPSOL CONFERENCE CALL Third Quarter 2020 Results Repsol Investor Relations Investor.relations@repsol.com