Slide 1: Q3 2023 Results Conference Call
Q3 2023 Results Conference Call Alfred Stern Chairman of the Executive Board and CEO October 31, 2023 1 | Q3 2023 Conference Call, October 31, 2023 © OMV Group
Slide 2: Disclaimer
Q3 2023 Results conference call Disclaimer This presentation contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “target”, “objective”, “estimate”, “goal”, “may”, “will”, and sim
Slide 3: Macro environment
Macro environment Oil and gas prices below prior-year quarter, strong refining margins, and weak chemical market environment Oil prices Gas prices USD/bbl EUR/MWh Realized gas price Central European Gas Hub Average Brent price Average realized crude price 201 101 99 89 87 99 81 78 56 82 38 34 86 81
Slide 4: Key messages
Q3 2023 Results conference call Key messages FINANCIAL OPERATIONS Q3/23 DELIVERING THE PERFORMANCE Q3/23 STRATEGY Clean CCS Operating Result of Polyolefin sales incl. JVs Signed long-term gas sales agreement EUR 1.3 bn +11% y-o-y with Equinor –62% y-o-y Signed collaboration agreement for Total fuel
Slide 5: Start-up of new Baystar polyethylene plant in Texas, USA
Q3 2023 Results conference call Start-up of new Baystar polyethylene plant in Texas, USA 1 mn t integrated ethane-to- polyethylene complex Houston ● First usage of Borstar® technology in North America to meet local demand for Pasadena Port Arthur Polyethylene Ethane enhanced polyethylene products pl
Slide 6: Clean CCS Earnings
Clean CCS Earnings Performance impacted by declining oil and gas prices, partially offset by stronger refining earnings Clean CCS Operating Result Clean CCS net income attributable to Clean CCS Earnings Per Share EUR mn stockholders EUR Chemicals & Materials EUR mn Fuels & Feedstock Energy Corporate
Slide 7: Chemicals & Materials
Chemicals & Materials Substantially weaker margins and missing contribution of the Nitro business, partially offset by higher inventory valuation effects Clean Operating Result EUR mn (225) Nitro: missing contribution of the Nitro business, which had a temporary 214 exceptionally strong contribution
Slide 8: Fuels & Feedstock
Fuels & Feedstock Significantly stronger refining operations and commercial performance Clean CCS Operating Result EUR mn +79 418 ● Slightly lower refining indicator margin Europe (USD 14.0/bbl vs. 14.4/bbl) ● Operational performance 339 120 ● Significantly higher refinery utilization rate Europe (8
Slide 9: Energy
Energy Sharp commodity price drop from exceptionally strong level of Q3/22 and decreased sales volumes mainly due to lifting schedule Clean Operating Result EUR mn ● Market environment ● Average realized crude oil price decreased by -18% (2,005) ● Average realized natural gas price declined by -69%
Slide 10: Cash Flow
Cash Flow Organic free cash flow before dividends at EUR 2.1 bn for 9m/23 Cash flow 9m/23 vs. 9m/22 ● Decrease of ~EUR 5.1 bn in cash flow from operating activities EUR bn excluding net working capital effects vs. 9m/22 ● Net working capital effects of EUR 1.1 bn -5.1 9m/22 (9m/22: EUR -2.3 bn) 8.6
Slide 11: Strong balance sheet
Strong balance sheet Very low leverage ratio and high cash position Leverage ratio Net debt in EUR bn 9.3 End of September 2023 OMV cash position1 32% 6.0 EUR 7.8 bn 4.7 22% 21% End of September 2023 3.1 OMV undrawn committed 2.2 1.7 credit facilities 11% 8% 6% 0.6 EUR 5.2 bn 2% 2019 2020 2021 2022
Slide 12: Updated outlook 2023
Q3 2023 Results Updated outlook 2023 2022 9m 2023 2023 Brent oil price (USD/bbl) 101 82 >80 (previously 75–80) Average realized gas price (EUR/MWh) 54 30 ~30 Europe ethylene indicator margin (EUR/t) 560 501 ~510 (previously ~530) Europe propylene indicator margin (EUR/t) 534 389 ~400 Europe polyethy
Slide 13: Appendix
APPENDIX 13 | Q3 2023 Conference Call, October 31, 2023 © OMV Group
Slide 14: Chemicals & Materials
Chemicals & Materials Substantially weaker margins and lower volumes, partially offset by higher inventory valuation effects Clean Operating Result EUR mn Nitro: divestment of the business in July 2023 (18) Olefins and polyolefins in Europe ● Market environment and inventory effects ● Lower ethylene
Slide 15: Specialty Polyolefins
Specialty Polyolefins Specialty polyolefin margins and volumes in Europe have proven very resilient Polyolefin clean sales margin of Borealis excluding JVs Standard products sales margin in EUR ● Specialty products are supplied to various industries such as Specialty products sales margin in EUR Ene
Slide 16: Fuels & Feedstock
Fuels & Feedstock Stronger refining margins and utilization rate Clean CCS Operating Result EUR mn +135 +48% 37 418 172 ● Higher refining indicator margin Europe (USD 14.0 vs 7.6/bbl) ● Operational performance 283 ● Higher refinery utilization rate (84% vs 73%) ● Slightly higher retail contribution,
Slide 17: Energy
Energy Strong contribution from Gas Marketing & Power almost offset by weaker market environment Clean Operating Result EUR mn +47 ● Market environment ● Average realized oil price increased by 9% 45 942 72 895 21 20 ● Average realized gas price decreased by -10% Gas Marketing &Power 132 ● Immateria
Slide 18: Strong balance sheet
Balance sheet Strong balance sheet Balance sheet September 30, 2023 vs. June 30, 2023 EUR bn 50.0 50.6 50.6 50.0 ● Successful divestment of Borealis’ nitrogen business Stockholders’ equity on July 5th, leading to a cash inflow of EUR 661 mn and hybrid capital 18.4 17.8 Tangible & 22.5 and lowering a
Slide 19: Sensitivities of the OMV Group results in 2023
2023 Sensitivities Sensitivities of the OMV Group results in 2023 Annual impact excl. hedging Clean CCS Operating Operating cash flow in EUR mn Result Brent oil price (USD +1/bbl) +55 +25 Realized gas price (EUR +1/MWh) +75 +40 OMV indicator refining margin Europe (USD +1/bbl) +110 +85 Ethylene indi