Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Shareholder Meeting (April 2018)
14 slides from Omv Petrom Sa's shareholder meeting presentation, Apr 26, 2018
Slide 1: OMV Petrom Group 2017 Overview and 2018 Outlook
OMV Petrom Group 2017 Overview and 2018 Outlook General Meeting of Shareholders April 26, 2018 Mariana Gheorghe Chief Executive Officer
Slide 2: Operational highlights 2017, Outlook 2018, Execution of Strategy 2021+
1 Operational highlights 2017 2 Outlook 2018 3 Execution of Strategy 2021+ 2 | General Meeting of Shareholders, April 26, 2018
Slide 3: Romanian macroeconomic and fiscal environment
Romanian macroeconomic and fiscal environment Macroeconomic Fiscal framework environment 2017 GDP growth1: 7% yoy Supplementary gas taxation5 extended CPI annual inflation: 3.3% end-Dec; 12-month average: Tax on special 1.3% constructions eliminated starting January 1, 2017 Demand: Engagement with 2
Slide 4: Key messages 2017
Key messages 2017 Upstream: production 168 Free cash flow of RON 2.7 bn kboe/d, -4% yoy; OPEX after RON 0.8 bn dividend USD 10.9/boe, -7% yoy paid Clean CCS Operating Result at RON 3.3 bn Downstream Oil: refining margins USD +0.8/bbl yoy; Clean CCS EPS up > 2 times retail sales volumes +6% yoy yoy D
Slide 5: Cost efficiency and operational excellence
Cost efficiency and operational excellence Total operating cost1 Key drivers 2017 vs. 2015 (RON mn) -500 -500 -380 -380 Upstream cost base reduced with 22% Downstream Direct Cash Costs: reduced maintenance costs, energy efficiency improvements and 3rd party contracts renegotiation, -11% Corporate Co
Slide 6: Focused on safeguarding our employees and the environment
Focused on safeguarding our employees and the environment Improved LTIR1 in 2017 vs. 2012 Significant reduction of GHG3 and Water Intensity 2017 LTIR well below international Upstream achieved the greatest GHG benchmarks (IOGP2 2016: 0.27) reduction: -41% in 20174 vs. 2012 Water intensity reduced by
Slide 7: Upstream KPIs: improved OPEX/boe
Upstream KPIs: improved OPEX/boe OPEX1 Key drivers 2017 vs. 2016 (USD/boe) 17,3 Improved OPEX, in USD/boe terms, -7%: 15,4 15,5 -7% -7% 13,2 11,7 Abolition of tax on special constructions 10,9 MTBF 626 days; lower services costs One-off personnel-related expense 2012 2013 2014 2015 2016 2017 Hydroca
Slide 8: Downstream Oil KPIs: strong refining margins and sales
Downstream Oil KPIs: strong refining margins and sales OMV Petrom Indicator refining margin Key drivers 2017 vs. 2016 (USD/bbl) 8,71 7,75 6,98 Strong refining margin, +11% yoy 1,89 Refinery utilization rate at 93% -1,39 -2,83 2012 2013 2014 2015 2016 2017 Retail sales volumes (mn t) +6% +6% 2,56 2,7
Slide 9: Downstream Gas KPIs: higher gas sales volumes
Downstream Gas KPIs: higher gas sales volumes Gas sales volumes Key drivers 2017 vs. 2016 (TWh) +2% +2% 52,16 52,70 51,39 50,36 51,40 47,70 Higher gas volumes, built on sale portfolio optimization 2012 2013 2014 2015 2016 2017 Net electrical output (TWh) Higher spark spreads supported by -7% -7% bas
Slide 10: Operational highlights 2017, Outlook 2018, Execution of Strategy 2021+
1 Operational highlights 2017 2 Outlook 2018 3 Execution of Strategy 2021+ 10 | General Meeting of Shareholders, April 26, 2018
Slide 11: Outlook 2018
Outlook 2018 Indicators Actual 2017 Assumptions/Targets 2018 Brent oil price USD 54/bbl USD 60/bbl Refining margin USD 7.75/bbl <USD 7.75/bbl Production 168 kboe/d ~ -4% yoy1 CAPEX RON 3.0 bn RON 3.7 bn FCF after dividends RON 2.7 bn positive 1 Not including portfolio optimization initiatives 11 | G
Slide 12: Operational highlights 2017, Outlook 2018, Execution of Strategy 2021+
1 Operational highlights 2017 2 Outlook 2018 3 Execution of Strategy 2021+ 12 | General Meeting of Shareholders, April 26, 2018
Slide 13: First progress towards achieving our 2021+ strategic objectives
First progress towards achieving our 2021+ strategic objectives Sustainable access to energy for everyday modern life Drilling campaign ramped-up Operational efficiency Enhancing increased competitiveness Strong Costs optimized performance and Portfolio streamlining initiated attractive return 9.8%
Slide 14: Thank you!
Thank you! OMV Petrom