Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q2 2022 Earnings Presentation
35 slides from Omv Petrom Sa's earnings presentation, Jul 28, 2022
Slide 1: OMV Petrom Q2/22 Results Conference Call
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Christina Verchere Chief Executive Officer and President of the Executive Board Alina Popa Chief Financial Officer The spoken word applies. Check against delivery. Page 1 of 35
Slide 2: Slide 1 – Intro
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Christina Verchere – OMV Petrom – CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. Thank you for joining our call. It is a real pleasure to present to you today OMV Petrom’s performance for the second q
Slide 3: Slide 2 – Legal Disclaimer
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 2 – Legal Disclaimer Please let me first draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. Page 3 of 35
Slide 4: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 4 of 35
Slide 5: Slide 3 – Higher and very volatile commodity prices
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 3 – Higher and very volatile commodity prices Let me start with some highlights regarding commodity prices and main currencies in the second quarter of 2022. Brent oil price continued its growth to an average of 114 dollars per barrel in
Slide 6: Gas, power and CO2 price developments
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 June saw prices rallying again, mainly driven by further reductions of Russian natural gas supplies to Europe. Consequently, the second quarter ended higher than it started for many of the European hub price benchmarks. Gas prices on the Romani
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OMV Petrom Q2/22 Results Conference Call, July 28, 2022 This page was left blank intentionally. Page 7 of 35
Slide 8: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 8 of 35
Slide 9: Slide 4 – Challenging Romanian environment
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 4 – Challenging Romanian environment In the context of the Russia-Ukraine conflict, an energy supply security crisis has unfolded, sending commodity prices to new highs, with wider implications for the global economy. The EU embargo on im
Slide 10: Romanian government measures and GDP outlook
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 We mentioned last quarter the temporary measures decided by the Romanian Government to address the high gas and power prices, applicable between April 2022 and March 2023. In addition, the Government adopted temporary measures for the fuels mar
Slide 11: Gas and power demand in Romania
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Gas demand, as per internal estimations, decreased by 19 percent year- on-year, as consumption was impacted by high energy prices. Moreover, last year’s unusually high consumption due to cold weather led to a high base effect. Power demand was
Slide 12: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 12 of 35
Slide 13: Slide 5 – Key messages Q2/22
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 5 – Key messages Q2/22 On slide 5, we present the key highlights for the quarter. At Group level, Clean CCS Operating Result of 3.7 billion RON was the highest quarterly result ever recorded, and more than quadrupled year- on-year, on goo
Slide 14: Key messages continued: projects and HSSE
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 number agreed with our partner to be opened by end-2023. This year, about 80 more proximity stores will be inaugurated. In Gas and Power, we are progressing towards our target of reaching 1 GW photovoltaic installed capacity by 2030. Negotiatio
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Slide 16: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 16 of 35
Slide 17: Slide 6 – Good operational performance in mixed market demand
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 6 – Good operational performance in the context of mixed market demand On slide 6, I would like to present the operational performance and I will start with Exploration and Production. Hydrocarbon production decreased by 10 percent due to
Slide 18: Operational performance continued
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 outage for half of its capacity in April 2022 versus being at full capacity in April 2021. Page 18 of 35
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Slide 20: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 20 of 35
Slide 21: Slide 7 – Increasing CAPEX
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 7 – Increasing CAPEX Moving now to slide 7, total organic CAPEX amounted to 1.4 billion RON in the first half of 2022, 15 percent higher year-on-year. The majority, 1 billion RON, was directed to Exploration and Production, where we final
Slide 22: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 22 of 35
Slide 23: Slide 8 – Continued focus on sustainability
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 8 – Continued focus on sustainability Moving now to slide 8, I am happy to share with you our progress in terms of sustainability, which is an important topic on our Board’s agenda. For us, 2021 was a milestone year, with the launch of ou
Slide 24: Sustainability ratings and handover to CFO
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 performing peer companies and improved our score and rating versus the previous assessment. Please let me now hand over to Alina, who will go into the financials and the outlook in detail. Page 24 of 35
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Slide 26: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 26 of 35
Slide 27: Slide 10 – Income Statement: strong results
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 10 – Income Statement: strong results Thank you, Christina, and good afternoon also from my side. I will continue the presentation with slide 10, starting with some highlights of the Income Statement, with focus on the developments of the
Slide 28: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 28 of 35
Slide 29: Slide 11 – Clean CCS Operating Results improved across segments
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 11 – Clean CCS Operating Results improved throughout all business segments Let me go on to slide 11, which shows the major building blocks for the development of the Clean CCS Operating Result. I will start with Exploration and Production
Slide 30: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 30 of 35
Slide 31: Slide 12 – Excellent cash flow generation
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 12 – Excellent cash flow generation On slide 12, I would like to continue with the highlights of our cash flow statement. In the second quarter of 2022, we achieved an operating cash flow of 3.7 billion RON, 148 percent higher year-on-yea
Slide 32: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 32 of 35
Slide 33: Slide 13 – Outlook
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Slide 13 – Outlook Let me conclude our presentation with the Outlook, on slide 13. We expect Brent oil price in 2022 to be above100 dollars per barrel, higher than our previous assumption of 95 dollars per barrel and significantly above the ran
Slide 34: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 34 of 35
Slide 35: OMV Petrom Q2/22 Results Conference Call, July 28, 2022
OMV Petrom Q2/22 Results Conference Call, July 28, 2022 Page 35 of 35