ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q1 2018 Earnings Presentation
35 slides from ORLEN Spolka Akcyjna's earnings presentation, Apr 26, 2018
Slide 1: PKN ORLEN consolidated financial results 1Q18
PKN ORLEN consolidated financial results 1Q18 26 April 2018 #ORLEN1Q18@PKN_ORLEN
Slide 2: Agenda
Agenda Key highlights 1Q18 Macro environment Financial and operating results Liquidity and investments Outlook for 2018 2
Slide 3: Key highlights 1Q18
Key highlights 1Q18 EBITDA LIFO: PLN 1,9 bn Crude oil throughput: 8,5 mt / 98% utilization Sales: 10,1 mt, i.e. increase by 4% (y/y) Declaration of cooperation between PKN ORLEN and Lithuanian government Signing a letter of intent regarding taking control over LOTOS Group Value creation ORLEN: stron
Slide 4: Agenda
Agenda Key highlights 1Q18 Macro environment Financial and operating results Liquidity and investments Outlook for 2018 4
Slide 5: Macro environment in 1Q18 (y/y)
Macro environment in 1Q18 (y/y) Downstream margin decrease Product slate of downstream margin Model downstream margin, USD/bbl Crack margins Refining products (USD/t) 1Q17 4Q17 1Q18 ∆ y/y -0,7 USD/bbl Diesel 77 91 87 13% 13,6 13,9 Gasoline 142 139 133 -6% 12,1 11,5 11,4 HHO -118 -130 -154 -31% SN 15
Slide 6: Fuel consumption increase in Poland (y/y)
Fuel consumption increase in Poland (y/y) GDP increase1 Fuel consumption (diesel, gasoline)2 Change (%) to respective quarter of the last year mt 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 1Q18 1Q17 1Q18 4,8÷5,4 + 6% 4,1 4,0 4,9 5,1 + 5% 3,58 3,81 0,96 1,02 Poland - 2% + 2% 3,4 9,28 9,08 2,2 2,3 1,8÷2,2 4,41 4,4
Slide 7: Agenda
Agenda Key highlights 1Q18 Macro environment Financial and operating results Liquidity and investments Outlook for 2018 7
Slide 8: Financial results in 1Q18
Financial results in 1Q18 PLN m 1Q17 4Q17 1Q18 Revenues: increase by 2% (y/y) mainly due to higher + 2% sales volumes 22 875 24 734 23 241 Revenues EBITDA LIFO: decrease by PLN (-) 0,4 bn (y/y) mainly due to negative impact of macro partially limited by - 0,4 bn higher sales volumes. 2 321 2 022 1 8
Slide 9: EBITDA LIFO – segments' results in 1Q18
EBITDA LIFO Segments’ results in 1Q18 PLN m 464 68 Downstream: negative impact of macro partially limited by 1 893 higher sales volumes. 1 513 -152 1Q18 results include PLN 0,1 bn of received insurance related to CCGT’s. 1Q17 results include PLN 0,2 bn of received insurance related to FCC Unit failu
Slide 10: Downstream – EBITDA LIFO
Downstream – EBITDA LIFO Sales increase limited negative impact of macro EBITDA LIFO PLN m Higher throughput by 8% (y/y) due to full utilization of 3000 refineries in Płock and Lithuania 2550 2513 Sales volumes increase by 2% (y/y), of which: 2291 2363 higher sales (y/y): diesel by 3% (however in Po
Slide 11: Downstream – operational data
Downstream – operational data Higher crude oil throughput and sales volumes increase Sales volumes Utilization ratio mt +2% % 8,9 9 Refineries 1Q17 4Q17 1Q18 ∆ (y/y) 8,5 8,1 8,2 Płock 90% 104% 103% 13 pp 7,9 8 7,6 7,7 Unipetrol 88% 81% 86% -2 pp 7,3 7,2 ORLEN Lietuva 86% 104% 98% 12 pp 7 Petrochemic
Slide 12: Retail – EBITDA LIFO
Retail – EBITDA LIFO Sales volumes and retail margins increase EBITDA LIFO PLN m Sales volumes increase by 11% (y/y) 900 Market share increase on all markets (y/y) 619 610 Fuel and non-fuel margins increase in Polish and Czech 576 600 491 markets at comparable margins in German and Lithuanian 441 44
Slide 13: Retail – operational data
Retail – operational data Sales volumes increase and further non-fuel offer growth Sales volumes Number of petrol stations and market shares (by volume) mt #, % + 11% 2,5 2,3 2,3 2,3 2,2 2,2 2,1 2,1 2,0 2,0 1,9 1,5 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Coffee corners (including convenience st
Slide 14: Upstream – EBITDA LIFO
Upstream – EBITDA LIFO Increase of average production by 19% (y/y) EBITDA LIFO Average production PLN m th. boe/d 150 20 + 19% 128 16,7 17,1 100 16,2 80 82 78 15,0 68 15 14,2 14,4 58 53 13,9 42 13,2 50 12,8 27 10 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q
Slide 15: Upstream
Upstream Poland Canada Total reserves of crude oil and gas (2P) Total reserves of crude oil and gas (2P) Ca. 11 m boe* (6% liquid hydrocarbons, 94% gas) Ca. 141 m boe* (42% liquid hydrocarbons, 58% gas) 1Q18 1Q18 Average production: 1,2 th. boe/d (100% gas) Average production: 15,9 th. boe/d (43% li
Slide 16: Agenda
Agenda Key highlights 1Q18 Macro environment Financial and operating results Liquidity and investments Outlook for 2018 16
Slide 17: Cash flow
Cash flow Cash flow from operations Cash flow from investments PLN bn PLN bn 1,9 0,1 -0,8 0,5 -1,4 -0,1 -4,0 -4,8 EBITDA LIFO effect Working capital Others Net inflow CAPEX CAPEX liabilities Net outflow LIFO increase from 1Q18 change and others from 1Q18 operations investments 1Q18 1Q18 Working capi
Slide 18: Financial strength
Financial strength Net debt and gearing Net debt /EBITDA LIFO PLN bn, % Financial gearing 15,7 3,5 3,0 11,6 2,5 2,0 5,2 1,5 3,7 3,7 1,0 0,73 2,2 0,53 0,59 1,7 0,5 0,35 1,2 0,11 0,07 0,6 0,8 0,0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 Diversified sources of financing (gross debt) Gross
Slide 19: CAPEX
CAPEX Planned CAPEX 2018 Realized CAPEX 3M18 – split by segment PLN bn, % PLN m 4,8 247 27 802 Downstream 1,2 16% Retail 0,4 Growth 2,5 48% 32% 5,8 128 5,1 Upstream 0,8 4% 400 Corp. functions 0,1 Energy 53 Petrochemical 186 Maintenance 2,3 and regulatory 161 Rafinery CAPEX Downstream Retail Upstream
Slide 20: Agenda
Agenda Key highlights 1Q18 Macro environment Financial and operating results Liquidity and investments Outlook for 2018 20
Slide 21: Macro environment 2018
Macro environment 2018 Macro Brent crude oil – expected increase of crude oil price vs. the average for 2017 mainly due to extension till the end of 2018 of the agreement between OPEC countries and Russia regarding limitation of crude oil production and high geopolitical risk. However, stronger incr
Slide 22: Thank you for your attention
Thank you for your attention For more information on PKN ORLEN, please contact Investor Relations Department: phone: + 48 24 256 81 80 fax: + 48 24 367 77 11 e-mail: ir@orlen.pl www.orlen.pl
Slide 23: Supporting slides
Agenda Supporting slides 23 23
Slide 24: Results – split by quarter
Results – split by quarter PLN m 1Q17 4Q17 1Q18 ∆ (y/y) 3M17 3M18 ∆ Revenues 22 875 24 734 23 241 2% 22 875 23 241 2% EBITDA LIFO 2 321 2 022 1 893 -18% 2 321 1 893 -18% LIFO effect 519 731 144 -72% 519 144 -72% EBITDA 2 840 2 753 2 037 -28% 2 840 2 037 -28% Depreciation -562 -662 -626 -11% -562 -62
Slide 25: Results – split by segment
Results – split by segment 1Q18 Corporate Downstream Retail Upstream TOTAL PLN m functions EBITDA LIFO 1 513 464 68 -152 1 893 LIFO effect 144 - - - 144 EBITDA 1 657 464 68 -152 2 037 Depreciation -412 -114 -75 -25 -626 EBIT 1 245 350 -7 -177 1 411 EBIT LIFO 1 101 350 -7 -177 1 267 1Q17 Corporate Do
Slide 26: EBITDA LIFO – split by segment
EBITDA LIFO – split by segment PLN m 1Q17 4Q17 1Q18 ∆ (y/y) 3M17 3M18 ∆ Downstream 2 021 1 636 1 513 -25% 2 021 1 513 -25% Retail 372 491 464 25% 372 464 25% Upstream 80 78 68 -15% 80 68 -15% Corporate functions -152 -183 -152 0% -152 -152 0% EBITDA LIFO 2 321 2 022 1 893 -18% 2 321 1 893 -18% Data
Slide 27: Results – split by company
Results – split by company Others and 1Q18 ORLEN consolidation PLN m PKN ORLEN S.A. Unipetrol 2) Lietuva 2) corrections Total Revenues 18 323 4 473 4 190 -3 745 23 241 EBITDA LIFO 1 240 247 56 350 1 893 LIFO effect 1) -155 21 -8 -2 -144 EBITDA 1 395 226 64 352 2 037 Depreciation 317 125 18 166 626 E
Slide 28: ORLEN Lietuva Group
ORLEN Lietuva Group USD m 1Q17 4Q17 1Q18 ∆ (y/y) 3M17 3M18 ∆ Revenues 1 013 1 400 1 232 22% 1 013 1 232 22% EBITDA LIFO 41 97 17 -59% 41 17 -59% EBITDA 54 105 19 -65% 54 19 -65% EBIT 50 99 13 -74% 50 13 -74% Net result 43 78 12 -72% 43 12 -72% Sales volumes at comparable level (y/y). Higher revenues
Slide 29: UNIPETROL Group
UNIPETROL Group CZK m 1Q17 4Q17 1Q18 ∆ (y/y) 3M17 3M18 ∆ Revenues 29 850 30 544 27 172 -9% 29 850 27 172 -9% EBITDA LIFO 3 617 1 282 1 499 -59% 3 617 1 499 -59% EBITDA 3 971 2 033 1 371 -65% 3 971 1 371 -65% EBIT 3 347 1 189 610 -82% 3 347 610 -82% Net result 2 838 716 366 -87% 2 838 366 -87% Sales
Slide 30: Macro environment in 2Q18
Macro environment in 2Q18 Downstream margin decrease Product slate of downstream margin Model downstream margin, USD/bbl Crack margins Refining products (USD/t) 2Q17 1Q18 2Q18* ∆ Q/Q ∆ Y/Y -0,7 USD/bbl Diesel 79 87 97 11% 23% 13,6 13,9 Gasoline 161 133 155 17% -4% 12,9 12,1 HHO -99 -154 -170 -10% -7
Slide 31: Macro environment in 2Q18
Macro environment in 2Q18 Refining margin and B/U differential decrease Petrochemical margin decrease Model refining margin and Brent/Ural differential, USD/bbl Model petrochemical margin, EUR/t differential margin - 130 EUR/t - 0,7 USD/bbl 1.003 8,4 8,9 930 7,7 911 890 902 7,4 1,0 873 1,5 2,1 6,2 2
Slide 32: Production data
Production data 1Q17 4Q17 1Q18 ∆ (y/y) ∆ (q/q) 3M17 3M18 ∆ Total crude oil throughput in PKN ORLEN (kt) 7 894 8 746 8 529 8% -2% 7 894 8 529 8% Utilisation 90% 99% 98% 8 pp -1 pp 90% 98% 8 pp Refinery in Poland 1 Processed crude (kt) 3 684 4 250 4 121 12% -3% 3 684 4 121 12% Utilisation 90% 104% 103
Slide 33: Dictionary
Dictionary Model downstream margin = revenues (90,7% Products = 22,8% Gasoline + 44,2% Diesel + 15,3% HHO + 1,0% SN 150 + 2,9% Ethylene + 2,1% Propylene + 1,2% Benzene + 1,2% PX) – costs (input 100% = 6,5% Brent crude oil + 91,1% URAL crude oil + 2,4% natural gas) Model refining margin = revenues (9
Slide 34: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by PKN ORLEN S.A. (“PKN ORLEN” or “Company”). Neither the Presentation nor any copy hereof may be copied, distributed or delivered directly or indirectly to any person for any purpose without PKN ORLEN’s knowledge and consent. Copying,
Slide 35: For more information on PKN ORLEN, please contact Investor Relations
For more information on PKN ORLEN, please contact Investor Relations Department: phone: + 48 24 256 81 80 fax: + 48 24 367 77 11 e-mail: ir@orlen.pl www.orlen.pl