Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q3 2012 Earnings Presentation
30 slides from Orlen Spolka Akcyjna's earnings presentation, Oct 30, 2012
Slide 1: Consolidated Financial Results of the LOTOS Group Q3 2012 (IFRS)
Consolidated Financial Results of the LOTOS Group Q3 2012 (IFRS) Management Board of Grupa LOTOS 30th October 2012
Slide 2: Key highlights
Grupa LOTOS S.A. 1 Key highlights 2 Market Conditions 3 Market Conditions Upstream 4 Upstream Downstream 5 Downstream Overall financial results Management Board 2/30
Slide 3: Key Highlights: 3Q 2012 in a nutshell
Grupa LOTOS S.A. KEY HIGHLIGHTS 3Q 2012 IN A NUTSHELL Core business related LOTOS model refining margin at the average level of 6.95 USD/bbl (reaching 10.95 USD/bbl in the last week of September) 9 month LIFO EBITDA (excluding one-off items) at the record high level of PLN 1.6bn proving high val
Slide 4: Key Highlights: Q3'12 Overall Figures
Grupa LOTOS S.A. KEY HIGHLIGHTS Q3’12 OVERALL FIGURES Crude oil production amounted to 4,812 bbl/d (57 k tonnes) Crude oil throughput amounted to 2,450 k tonnes Consolidated sales at the level of 2,599 k tonnes EBITDA at the level of PLN 768m higher by PLN 514m yoy LOTOS model refining mar
Slide 5: Market Conditions
Grupa LOTOS S.A. 1 Key highlights 2 Market Conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 5/30
Slide 6: Market Conditions: Key Factors
Grupa LOTOS S.A. MARKET CONDITIONS KEY FACTORS Refining margin Crude Oil Prices Negative impact of decrease in Brent/Ural spread in comparison with Q2’12, comparable level in regards to Q3’11 Positive impact of increase in refining margin yoy Decrease in crude oil prices yoy Management Board 6
Slide 7: Market Conditions: FX rates development
Grupa LOTOS S.A. MARKET CONDITIONS KEY FACTORS FX rates development *end of period values The EUR/USD rate increase qoq while the USD/PLN rate decreased qoq Management Board 7/30
Slide 8: Upstream
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 8/30
Slide 9: Geographical coverage of LOTOS' upstream operations
Grupa LOTOS S.A. UPSTREAM GEOGRAPHICAL COVERAGE OF LOTOS’ UPSTREAM OPERATIONS Sales volumes (ths bbl/q) Reserves (ths bbl) Helsinki Production (bbl/d) Oslo Stockholm Vilnius Warsaw Management Board 9/30
Slide 10: Upstream: Sales and Production Figures
Grupa LOTOS S.A. UPSTREAM SALES AND PRODUCTION FIGURES Net Sales (PLN m) +42% -3% Crude oil production (k tonnes) Comments +26% Slightly lower sales y/y, mainly due to lower sales from LOTOS Petrobaltic 0% Increase of the cumulative net sales by 42% y/y, following higher level of crude oil produ
Slide 11: Upstream: EBIT & EBITDA Development
Grupa LOTOS S.A. UPSTREAM EBIT & EBITDA DEVELOPMENT EBIT (PLN m) EBITDA (PLN m) * 2012 – excluding the negative impact of PLN 913m YME impairment ; 2011 – excluding the positive impact of the settlement of AB Geonafta acquistion Comments 3Q 2012 figures for EBIT and EBITDA on a similar level as in
Slide 12: Downstream
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 12/30
Slide 13: Downstream: Crude Oil Throughput
Grupa LOTOS S.A. DOWNSTREAM CRUDE OIL THROUGHPUT Crude oil throughput (k tonnes) +5% +4% Record high throughput of oil at the level of 2 450 k tonnes, responding to the high level of margins in the market Cumulative oil throughput for 9 months of 2012 reaching 7 138 k tonnes, which is higher by
Slide 14: Downstream: Sales of Products and Goods
Grupa LOTOS S.A. DOWNSTREAM SALES OF PRODUCTS AND GOODS Quarterly sales (k tonnes) Comments In Q3 ’12 total sales reached 2 599 thousand tonnes (+1% y/y) Second consecutive quarter of record high sales Following up improved margins, q/q increase of the Diesel sales 9 month sales (k tonnes) Com
Slide 15: Downstream: Overall Market Share Evolution
Grupa LOTOS S.A. DOWNSTREAM OVERALL MARKET SHARE EVOLUTION Wholesale market share Stable level of the overall market share - above the strategic target of 30% Management Board 15/30
Slide 16: Downstream: Retail Market Share and Network
Grupa LOTOS S.A. DOWNSTREAM RETAIL MARKET SHARE AND NETWORK Petrol station network development Total number of petrol stations reaching 368 (as of 30 Sep 2012) The total number of DODO stations decreased to 35 units Management Board 16/30
Slide 17: Downstream: Retail Results
Grupa LOTOS S.A. DOWNSTREAM RETAIL RESULTS Retail Net Sales (PLN m) Retail EBIT & Sales Volumes +14% +10% * Including LPG Another quarter confirming substantial growth of LOTOS retail business; cumulative retail net sales result up by 14% comparing with 2011 Less severe margin pressure bringing
Slide 18: Downstream: Financial Results – Quarterly View
Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – QUARTERLY VIEW Downstream Net Sales (PLN m) +19% +13% Cumulative 9month 2012 sales reaching a record high figure of PLN 24.6bn, which is up by 19% comparing with 2011 In the third quarter sales revenues exceeded PLN 8.5bn (+13% in comparison with Q
Slide 19: Downstream: Financial Results – EBITDA & EBIT
Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – EBITDA & EBIT Downstream EBITDA (PLN m) Downstream EBIT (PLN m) +16% +14% +368m +468m Reported EBITDA and EBIT at the level of respectively PLN 656m and PLN 524m, proving the capability of taking advantage of favorable market conditions Management Bo
Slide 20: Downstream: LIFO EBITDA & EBIT Analysis
Grupa LOTOS S.A. DOWNSTREAM LIFO EBITDA & EBIT ANALYSIS LIFO EBITDA Downstream (PLN m) LIFO EBIT Downstream (PLN m) +787m +739m +615m +615m Good results of the downstream segment thanks to high level of production and sales, capturing the market opportunities in the high margin environment 9M LI
Slide 21: Overall financial results
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 21/30
Slide 22: Overall Financial Results: Q3 Results Breakdown
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS Q3’ RESULTS BREAKDOWN Q3 ’12 Q3 ’11 Management Board 22/30
Slide 23: Quarterly LIFO Effect Analysis
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS QUARTERLY LIFO EFFECT ANALYSIS Q3 2012 LIFO EFFECT Comments The reported EBIT almost in line with the LIFO EBIT – the LIFO effect of PLN 22m on the Q3 2012 LIFO EBITDA at the level of PLN 791m, by PLN 660m higher than in the Q3 2011 High level of marg
Slide 24: 9M Cumulative Results
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS 9M CUMULATIVE RESULTS 9M ’12 9M ’11 Management Board 24/30
Slide 25: 9M 2012 Normalised Reported Result Breakdown
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS 9M 2012 NORMALISED REPORTED RESULT BREAKDOWN 9M 2012 9M 2011 *2012 negatively impacted by PLN 935m of YME field impairment investment (net result impact of PLN -285m); 2011 results boosted by PLN 127m of the settlement of LOTOS Geonafta acqusition ** Exclud
Slide 26: 9M LIFO Effect Analysis Excluding One-Off Items
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS 9 MONTH LIFO EFFECT ANALYSIS EXCLUDING ONE OFF ITEMS 9M 2012 LIFO EFFECT Comments Cumulative 9 month „normalised” LIFO EBIT at PLN 1.1bn, up by almost PLN 0.9bn comparing to 2011 Cumulative normalised LIFO EBITDA for 9 month of 2012 (excluding the impac
Slide 27: Balance Sheet Evolution
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS BALANCE SHEET EVOLUTION ASSETS Comments The decrease of assets under construction as a consequence of YME write-off The above mentioned impairment triggering the increase of the deferred tax assets -707m +685m LIABILITIES Comments +962m Increase of th
Slide 28: Financial Debt and Gearing Ratio
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS FINANCIAL DEBT 10 + related debt denominated in USD (PLN m) Financial debt (PLN m) -382m Gearing ratio Level of indebtness of the company fluctuating following the development of USD/PLN FX rate – mark to market revaluation of the 10+related USD denominat
Slide 29: Thank You
Grupa LOTOS S.A. Thank You Investor Relations tel: +48 58 308 73 93 fax: +48 58 346 22 35 e-mail: ir@grupalotos.pl Management Board 29/30
Slide 30: Legal Disclaimer
Grupa LOTOS S.A. LEGAL DISCLAIMER • This presentation regarding the consolidated financial results of Grupa LOTOS S.A. after the third quarter of 2012 („Presentation") has been prepared by Grupa LOTOS S.A. ("Company"). The Presentation nor any copy hereof may be copied, distributed or delivered dire