Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Shareholder Meeting (April 2021)
12 slides from Omv Petrom Sa's shareholder meeting presentation, Apr 27, 2021
Slide 1: General Meeting of Shareholders – OMV Petrom 2020 Overview
General Meeting of Shareholders OMV Petrom 2020 Overview Christina Verchere, CEO and President of the Executive Board April 27, 2021 OMV Upstream
Slide 2: Agenda
Agenda Highlights 2020 Strategy Execution
Slide 3: Romanian environment
Romanian environment 2020 Macroeconomic environment Provisional GDP1 -3.9% CPI annual inflation +2.6% Demand in Romania Fuels2 -6% Gas3 +5% Regulatory changes Power4 -4% • 2% fee on gas and power turnover eliminated starting January 2020 • New gas release program • Removal of centralized market obli
Slide 4: Group Strategic and Financial performance 2020
Group Strategic and Financial performance 2020 2.3 bn RON Clean CCS Operating Result Strategic projects Regional Expansion 5.6 bn RON Operating Cash Flow • Winning bidder for an exploration block in the Black Sea, Georgia • Completed the acquisition of Han Asparuh offshore Bulgaria Portfolio optimiz
Slide 5: Cost efficiency and operational excellence
Cost efficiency and operational excellence Total operating cost (RON mn) -116 Key drivers 2020 vs. 2019 2019 2020 • Upstream: efficiency programs implemented led to cost base reduction by -3% Upstream Downstream Gas • Corporate Costs: -11% Downstream Oil Corporate • Headcount: further downsized, -13
Slide 6: Focused on safeguarding our employees and the environment
Focused on safeguarding our employees and the environment Our HSSE vision: “ZERO Harm – NO Losses” • LTIR1: 0.15 (2019: 0.31) • Upstream: Asset Moesia, Asset Oltenia and Kazakhstan recorded ZERO LTI; Asset Moesia achieved ~14 mn man-hours without LTI • Downstream Oil: ZERO LTI for own employees; 5 m
Slide 7: Upstream KPIs
Upstream KPIs Hydrocarbon production (kboe/d) -5% -5% 174 168 160 152 145 80 75 Oil and NGL 73 72 70 Gas 95 93 86 80 75 2016 2017 2018 2019 2020 Total Upstream production -5%, due to: • Natural decline • Surface works OPEX1(USD/boe) • Planned maintenance 0% • Contribution from new wells and workover
Slide 8: Downstream Oil KPIs
Downstream Oil KPIs Indicator refining margin (USD/bbl) 7.75 -38% 6.98 -38% 6.28 4.67 2.89 2016 2017 2018 2019 2020 Refining margin -38% due to lower products Retail sales volumes (mn t) spreads -8% -8% 2.56 2.70 2.74 2.85 2.62 • Refined product sales -9% due to weaker demand • Retail sales -8% driv
Slide 9: Downstream Gas KPIs
Downstream Gas KPIs Gas sales volumes (TWh) +4% +4% 54.84 57.03 50.36 51.40 47.32 2016 2017 2018 2019 2020 Record high gas sales volumes, built on third party acquisitions Net electrical output (TWh) Gas sales to regulated market in 2020: 6.97 +23% TWh • Record high net electrical output 4.17 3.82 2
Slide 10: Progress towards achieving our strategic objectives
Progress towards achieving our strategic objectives Upstream ▪ Production cost stabilized at ~11 USD/boe ▪ 40 marginal fields are being divested, process to be finalized in H1/21 ▪ >70% automated wells and modernized / automated facilities ▪ Entered offshore Bulgaria ▪ Entering offshore Georgia; PSC
Slide 11: Back up
Back up OMV Upstream
Slide 12: OMV Petrom’s response to COVID-19 and the new market environment
OMV Petrom’s response to COVID-19 and the new market environment ▪ Proven track record in managing economic crises ▪ Integrated business model supports financial results Ability to cope ▪ Resilience in highly volatile market, underpinned by with challenges business optimization and strict cost disci