Omv Petrom Sa · BVB:SNP

Omv Petrom Sa — Q3 2022 Earnings Presentation

17 slides from Omv Petrom Sa's earnings presentation, Oct 28, 2022

  1. Slide 1: OMV Petrom Q3/22 Results

    OMV Petrom Q3/22 Results Christina Verchere, CEO October 28, 2022 OMV Petrom S.A.

  2. Slide 2: Legal disclaimer

    Legal disclaimer This presentation does not, and is not intended to, constitute or form part of, and None of the future projections, expectations, estimates or prospects in this should not be construed as, constituting or forming part of, any actual offer to sell presentation, including (without bei

  3. Slide 3: Very high and volatile commodity prices

    Very high and volatile commodity prices Oil prices FX OMV Petrom indicator refining margin1 USD/bbl RON/USD, RON/EUR USD/bbl 4.9 4.9 4.9 4.9 4.9 4.6 4.9 24.4 4.3 4.4 4.2 114 18.3 17.1 102 101 80 78 90 74 71 79 74 7.2 7.5 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Avg USD/RON Avg EUR

  4. Slide 4: Stronger than expected GDP; overall lower demand

    Stronger than expected GDP; overall lower demand Strong GDP growth  GDP: Q2/221: 5.3% yoy; H1/221: 5.8%; 2022e2: +4.8% yoy; 2023e2: 3.4% Inflation on an upward trend  CPI: September 22/September 211: 15.9%; 2022e3: 13.9%; 2023e3: 7.5% Romania maintained at investment grade by major rating agencies

  5. Slide 5: Regulatory and fiscal environment has deteriorated

    Regulatory and fiscal environment has deteriorated New regulations in 2022 9m/22 specific sector taxes Gas and power market: 9m/22 9m/22  GEO 119 amends GEO 27 yoy bn RON  Applicability: most deadlines of GEO 27 extended to August 2023 Total direct taxes, 5.5 times 7.1 thereof  Current status: ap

  6. Slide 6: Key messages Q3/22

    Key messages Q3/22 Strong financial performance Clean CCS Operating result Operating Cash Flow Clean CCS ROACE RON 4.2 bn RON 3.2 bn 36.7% +215% yoy +38% yoy +27pp yoy Good operational performance Strategic focus  Neptun Deep: Operator starting Aug 1; FID estimated mid-20231  Good contribution fro

  7. Slide 7: Good operational performance in the context of lower market demand

    Good operational performance in the context of lower market demand Exploration and Production Refining and Marketing Gas and Power Hydrocarbon production Refinery utilization rate Gas sales volumes kboe/d % TWh -5% -5% -11% -1 pp -1% 123 122 121 120 117 100 101 99 12.3 12.7 98 11.1 11.0 61 60 58 57

  8. Slide 8: Increasing CAPEX

    Increasing CAPEX Group CAPEX1 RON bn 9m/22 2022E  RON 2.3 bn:  RON ~4 bn: ~4  36 new wells and sidetracks; >500  Wells and sidetracks: ~60; ~600 workovers workovers 3.0  Energy efficiency and EOR projects  Coke drums replacement 2.8  Ongoing projects in the tank farm  Coke drums replacement

  9. Slide 9: OMV Petrom Q3/22 Results – Alina Popa, CFO

    OMV Petrom Q3/22 Results Alina Popa, CFO October 28, 2022 OMV Petrom S.A.

  10. Slide 10: Income Statement: strong results

    Income Statement: strong results Clean CCS Operating Result RON bn +215% +256%  Q3/22 Clean CCS Operating Result reflects: 4.2 10.1 0.3 ► Significantly higher commodity prices and refining margin 1.3 2.8 3.2 ► Higher power sales volumes 1.3 1.3 2.8 0.1 0.0 0.3 ► Higher gas, power and fuel taxes 0.8

  11. Slide 11: Clean CCS Operating Results improved throughout all business segments

    Clean CCS Operating Results improved throughout all business segments E&P 1,362 RON mn 160  Realized crude price +42%  Higher gas price, partially offset by royalties and gas overtaxation 759  Positive FX effect on revenues 442  Hydrocarbon sales -4%  Higher production costs Q3/21 Market effect

  12. Slide 12: Strong cash flow generation

    Strong cash flow generation Cash Flow from Operating Activities RON bn +38% +92% 3.2 9.6  Q3/22 Cash Flow from Operating Activities: 2.3 ► Increase driven by Operating Result 4.5 5.0 12.2 2.2 ► Negative NWC 5.4 0.1 -1.3 -0.5 -2.6 Q3/21 Q3/22 9m/21 9m/22 Cash generated from operating activities befo

  13. Slide 13: Outlook

    Outlook Indicators Actual Actual Assumptions/ Targets 2021 9m/22 2022 Brent oil price USD 70.9/bbl USD 105.5/bbl USD >100/bbl Production in 127 kboe/d 120 kboe/d Decline <6% yoy1 Romania (prev. <7% yoy) Refining margin2 USD 5.5/bbl USD 15.8/bbl USD >15/bbl CAPEX RON 2.8 bn RON 2.3 bn RON ~4 bn3 FCF

  14. Slide 14: Q&A

    Q&A OMV Petrom S.A.

  15. Slide 15: Back-up

    Back-up OMV Petrom S.A.

  16. Slide 16: Sensitivities in 2022

    Sensitivities in 2022 2022 sensitivities EBIT impact Brent oil price USD +1/bbl ~EUR +15 mn Equity gas price 1 EUR +1/MWh ~EUR +10 mn in a free market scenario OMV Petrom indicator USD +1/bbl ~EUR +30 mn refining margin Exchange rates USD appreciation ~EUR +75 mn EUR/USD by 5 USD cents 1 This sensit

  17. Slide 17: Clean CCS Operating Results improved throughout all business segments

    Clean CCS Operating Results improved throughout all business segments E&P 4,356 RON mn 58  Realized crude price +58%  Higher gas price, partially offset by royalties and gas overtaxation 3,072  Positive FX effect on revenues 1,226  Lower depreciation  Hydrocarbon sales -8% 9m/21 Market effects1

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