Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q3 2021 Earnings Presentation
16 slides from Omv Petrom Sa's earnings presentation, Oct 29, 2021
Slide 1: OMV Petrom Q3/21 Results
OMV Petrom Q3/21 Results Christina Verchere, CEO October 29, 2021
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, and This presentation may contain forward-looking statements. These statements reflect should not be construed as, constituting or forming part of, any actual offer to sell or the Company’s current knowl
Slide 3: Increasing commodity prices
Increasing commodity prices Oil price (USD/bbl) and FX (RON/USD) OMV Petrom indicator refining margin (USD/bbl) 4.8 4.9 4.9 4.9 4.9 7.19 4.0 4.1 4.2 69.0 73.5 4.1 4.1 61.1 71.1 4.27 43.4 44.4 67.3 60.0 2.80 2.00 42.9 44.2 0.94 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Avg Urals price in USD/bbl (left axis) Avg
Slide 4: Romanian environment recovered to pre-COVID levels
Romanian environment recovered to pre-COVID levels GDP: Q2/211: 14.4% yoy; 2021e2: +7.0% yoy Strong GDP growth; CPI on an upward trend CPI: Sep 21/Sep 201: 6.3%; 2021e3: 5.6% Law regarding vulnerable consumers approved Recent regulatory changes Draft legislation for temporary measures relate
Slide 5: Key messages Q3/21
Key messages Q3/21 Clean CCS Operating Operating Cash Clean CCS Financial result Flow ROACE resilience RON 1.3 bn RON 2.3 bn 9.5% +135% yoy +35% yoy vs. 8.4% in Q3/20 • Neptun: ready to act as Operator for • DS Oil: record quarter in terms of refinery Neptun Deep Block1 Good utilization and sales vo
Slide 6: Operational performance reflects recovering market demand in a challenging environment
Operational performance reflects recovering market demand in a challenging environment Upstream Downstream Oil Downstream Gas Hydrocarbon production (kboe/d) Refinery utilization rate (%) Gas sales volumes (TWh) -13% -3% -9% -2% +17% +4% 141 140 139 134 14.36 123 13.25 100 12.11 11.21 11.07 69 67 67
Slide 7: CAPEX and E&A: cautious approach maintained in a volatile market
CAPEX and E&A: cautious approach maintained in a volatile market Organic CAPEX Group organic CAPEX* (RON bn) 9m/21 at RON 1.8 bn: 29 new wells and sidetracks; ~530 workovers Projects in the tank farm area in Petrobrazi -28% -28% Preliminary works for coke drums replacement in Petrobrazi 4.2
Slide 8: OMV Petrom Q3/21 Results Alina Popa, CFO
OMV Petrom Q3/21 Results Alina Popa, CFO October 29, 2021
Slide 9: Income Statement: results mainly supported by improved commodity prices
Income Statement: results mainly supported by improved commodity prices Clean CCS Operating Result (RON bn) +56% 56% 135% 2.85 +135% Q3/21 Clean CCS Operating Result evolution reflects: 1.82 1.34 ► Higher oil prices and refining margins 0.57 ► Lower contribution from power forward contracts Q3/20
Slide 10: Clean CCS Operating Results: improved commodity prices and refining margins
Clean CCS Operating Results: improved commodity prices and refining margins Upstream (RON mn) Realized crude price +73% -202 -3 -78 442 Higher gas price, majority offset by royalties and gas over-taxation 771 Positive FX effect on revenues (46) Q3/20 Market Volume Exploration Other Q3/21 Hyd
Slide 11: Cash Flow: supported by higher commodity prices
Cash Flow: supported by higher commodity prices Cash Flow from Operating Activities (RON bn) +16% +16% +35% 5.0 4.3 2.3 Q3/21 Cash Flow from Operating Activities: 1.7 3.6 5.4 1.4 2.2 0.4 0.1 0.7 -0.5 ► Increase driven by Operating Result Q3/20 Q3/21 9m/20 9m/21 ► Positive NWC Sources of funds Net
Slide 12: Outlook: 2021 oil price and refining margin estimates revised upwards
Outlook: 2021 oil price and refining margin estimates revised upwards Assumptions/ Targets Assumptions/ Targets Indicators Actual 2020 2021 2022-2023 averages USD 70/bbl Brent oil price USD 41.8/bbl USD 60/bbl (prev. USD 65-70/bbl) Decline ~7% yoy1 Production 145 kboe/d Decline ~5% yoy1 (prev. ~6% y
Slide 13: OMV Petrom
= OMV Petrom The energy for a better life.
Slide 14: Back-up
= OMV Petrom The energy for a better life.
Slide 15: Sensitivities in 2021
Sensitivities in 2021 OMV Petrom Group main sensitivities Operating Result impact Brent oil price USD +1/bbl ~EUR +17 mn Equity gas price EUR +1/MWh ~EUR +15-20* mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn Exchange rates (EUR/USD) USD appreciation by 5 USD cents ~EUR +35 mn *Depen
Slide 16: Clean CCS Operating Results: improved oil price
Clean CCS Operating Results: improved oil price Upstream (RON mn) Realized crude price +63% -489 1,226 15 -65 Lower exploration expenses 1,785 Hydrocarbon sales -10% (19) Higher production costs 9m/20 Market Volume Exploration Other 9m/21 effects* * Market effects defined as oil and gas pric