Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Polskie Górnictwo Naftowe i Gazownictwo — FY2016 Earnings Presentation
23 slides from Orlen Spolka Akcyjna's earnings presentation, Mar 8, 2017
Slide 1: PGNiG Group Q4 and FY 2016 Results
Polskie Górnictwo Naftowe i Gazownictwo SA PGNiG Group Q4 and FY 2016 Results March 8th 2017
Slide 2: Table of contents
Table of contents 1. Executive summary 2. Performance drivers 3. Financial highlights Q4 2016 4. Financial highlights FY 2016 5. PGNiG Group EBITDA by segment 6. 2017 outlook 7. Appendix − Segment performance Exploration and Production Trade and Storage Distribution Generation 8. Other appendices 2
Slide 3: Executive summary
Executive summary PLN 33.2bn PLN 6.0bn PLN 2.3bn PLN 49.7bn 25.3 thousand Revenue EBITDA Net profit Total assets Number of employees 4.5 bcm – production of natural 24.3 bcm – volume of gas sold 6.9 million – number of customers 1.1 GW – electric power gas 9.1 bcm – volume of gas sold via the 10.9 b
Slide 4: Performance drivers
Performance drivers Yoy appreciation of USD and EUR In Q4 2016, 9-month average Marked impact of recent against PLN of crude oil prices down 24% yoy PLN USD/bbl periods' tariff reductions on 4,5 4.38 120 gas selling prices Average regulated price down 4.26 +2.8% 100 14% yoy and flat qoq 4.06 80 in Q
Slide 5: Financial highlights Q4 2016
Financial highlights Q4 2016 [PLNm] Q4 2015 Q4 2016 % EBITDA more than doubled on Revenue 9,769 10,146 4% higher volumes of core products sold by the PGNiG Group Operating expenses (excl. D&A) (8,998) (8,441) (6%) EBITDA 771 1,705 x2 Adjusted EBITDA* 1,211 1,828 51% Depreciation and amortisation (71
Slide 6: Financial highlights FY 2016
Financial highlights FY 2016 [PLNm] 2015 2016 % Major impact of falling Revenue 36,464 33,196 (9%) commodity prices on full-year operating performance Operating expenses (excl. D&A) (30,384) (27,222) (10%) EBITDA 6,080 5,974 (2%) Adjusted EBITDA* 6,670 6,810 2% Depreciation and amortisation (2,790)
Slide 7: Business segments – Q4 2016 EBITDA
Business segments – Q4 2016 EBITDA [PLNm] Q4 2015 Q4 2016 adj. Q4 2015* adj. Q4 2016* Exploration and Production Revenue from sales of oil and condensate Exploration and Production 117 295 535 373 up PLN 84m or 22% yoy. Trade and Storage -135 649 -136 660 Effect of the PLN -108m impairment losses in
Slide 8: 2017 outlook
2017 outlook Segment performance supported by Progressing gas market deregulation higher oil and gas prices Since October 2017, tariffs are applied solely to gas sold to households Rising oil and gas prices expected by the market and stronger US dollar Roll-out of dual fuel products Forecasted oil a
Slide 9: Contact details
Contact details Aleksandra Dobosiewicz Calendar Deputy Head of the Economic Department Head of the Investor Relations Division Phone: +48 22 589 46 71 Mobile: +48 665 004 847 Fax: +48 22 691 81 23 Email: aleksandra.dobosiewicz@pgnig.pl May August November Weronika Zając 10th 11th 8th Senior Investor
Slide 10: Appendices – Segment performance
Agenda Appendices Segment performance Exploration and Production Trade and Storage Distribution Generation 10
Slide 11: Segments – Exploration and Production
Segments – Exploration and Production [PLNm] Q4 2015 Q4 2016 % Significant positive impact of oil prices Revenue 1,143 1,196 5% Operating expenses (excl. D&A) (1,026) (901) (12%) Commentary: Revenue from sales of crude oil and EBITDA 117 295 x2.5 condensate up PLN 84m yoy, with oil prices in PLN up
Slide 12: Segments – Trade and Storage (1/2)
Segments – Trade and Storage (1/2) [PLNm] Q4 2015 Q4 2016 % Margin on E gas fuel at 13%, with operating margin on the Revenue 8,622 8,571 (1%) product at 5% in Q4 2016 Operating expenses (excl. D&A) (8,757) (7,922) (10%) Commentary: Revenue from gas sales in Trade & Storage EBITDA (135) 649 - slight
Slide 13: Segments – Trade and Storage (2/2)
Segments – Trade and Storage (2/2) PGNiG Group gas sales volumes up 0.8 bcm yoy in Q4 2016, of which 0.3 bcm LNG cargoes received at the is the increase in gas volumes sold by PGNiG SA on the Polish Power Exchange Świnoujście terminal on a Gas inventory levels PGNiG Group's gas sales volumes Gas imp
Slide 14: Segments – Distribution
Segments – Distribution [PLNm] Q4 2015 Q4 2016 % Segment performance buoyed by higher gas Revenue 1,161 1,416 22% distribution volumes Operating expenses (excl. D&A) (636) (822) 29% Commentary: Volume of distributed gas up 20% yoy, to 3.4 EBITDA 525 594 13% bcm (new connections and lower temperature
Slide 15: Segments – Generation
Segments – Generation [PLNm] Q4 2015 Q4 2016 % Inclusion of SEJ and PEC in consolidated financial Revenue 617 756 23% statements with an impact on Operating expenses (excl. D&A) (355) (557) 57% segment performance Commentary: EBITDA 262 199 (24%) Revenue from sales of heat up 18% yoy, to PLN 460m, o
Slide 16: Table of contents
Table of contents 1. Efficiency Improvement Programme 2. Operating expenses 3. Changes on the Polish gas market 4. Gas trading and retail sales 5. Production and sales volumes 6. Debt and sources of funding 7. Statement of financial position, statement of cash flows, financial ratios and headcount 1
Slide 17: Efficiency Improvement Programme – almost PLN 850m in savings by 2017
Efficiency Improvement Programme – almost PLN 850m in savings by 2017 Programme objectives: The Programme aims to To set efficiency improvement targets for the individual segments and entities within the permanently reduce the PGNiG Group and to define related benefits to quality improvement. manage
Slide 18: Lower cost of gas sold in Q4 2016
Lower cost of gas sold in Q4 2016 [PLNm] Q4 2015 Q4 2016 % Higher regasification costs and Fuels for heat and power generation (226) (259) 14% production charges offset by lower gas procurement costs. Other raw materials and consumables used (406) (504) 24% Commentary: Employee benefits expense (908
Slide 19: Changes on the Polish gas market
Changes on the Polish gas market Gas sales volume (mcm) 2014 2015 2016 Gas market deregulation is Total PGNiG Group 18.6 23.0 24.3 affecting PGNiG's share in imports and sales structure PGNiG SA (without Pakistan) 13.8 13.2 14.5 Commentary: including PGNiG SA through PPE 3.7 8.1 9.0 Since August 1st
Slide 20: Gas trading and retail sales in Poland
Gas trading and retail sales in Poland Gas sold to key customers: above 25 mcm annually 4.2 bcm in 2015 4.3 bcm in 2016 Production PGNiG SA Direct sales 0.7 bcm in 2015 0.7 bcm in 2016 Gas purchase Polish Power Exchange 8.1 bcm in 2015 9.0 bcm in 2016 6.9m customers Polish Power Exchange PGNiG Obrót
Slide 21: Debt and sources of funding
Debt and sources of funding Commentary: Financing sources (as at December 31st 2016) On February 13th 2017, PGNiG made a timely PLNm available drawn repayment of a loan from PGNiG Finance AB 10 000 of EUR 500m along with interest. On February 14th 2017, PGNiG Finance AB redeemed its 8 000 Eurobonds
Slide 22: Statement of financial position, cash flows, financial ratios and headcount
Statement of financial position, statement of cash flows, financial ratios and headcount Group's statement of financial position Headcount (at year end) (as at December 31st 2016) PLNm Non-current Current Equity thousand Generation Distribution Trade & Storage Exploration & Production 60 000 40 50 0
Slide 23: Statement of financial position, cash flows, financial ratios and headcount
Statement of financial position, statement of cash flows, financial ratios and headcount Group's statement of financial position Headcount (at year end) (as at December 31st 2016) PLNm Non-current Current Equity thousand 40 60 000 Other Generation Distribution Trade & Storage Exploration & Productio
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