Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — FY2014 Earnings Presentation
28 slides from Orlen Spolka Akcyjna's earnings presentation, Mar 6, 2015
Slide 1: LOTOS Group 4Q 2014 and FY 2014 consolidated financial results
LOTOS Group 4Q 2014 and FY 2014 consolidated financial results 6 March 2015 Grupa LOTOS S.A.
Slide 2: Agenda
Agenda 1 Key highlights 3-5 2 External environment 6-9 3 Consolidated financial results 10 - 16 4 Upstream 17 - 21 5 Downstream 22 - 27 Grupa LOTOS S.A. 2
Slide 3: Key highlights
Key highlights Grupa LOTOS LOTOSS.A. S.A. 3
Slide 4: Key highlights – 4Q 2014
Key highlights – 4Q 2014 EBITDA : - 857m PLN Clean(1) EBITDA LIFO : + 368m PLN upstream: - 48m PLN upstream : + 118m PLN downstream: - 814m PLN downstream : + 246m PLN Operating cash flow : 451m PLN (36% y/y) Upstream average daily production : 13 793 boe/d(2) (+56% y/y) Assets impairments : 198m PL
Slide 5: Key highlights – FY 2014
Key highlights – FY 2014 EBITDA : - 584m PLN Clean(1) EBITDA LIFO : +1 391m PLN upstream: - 280m PLN upstream : + 505m PLN downstream: - 315m PLN downstream : + 875m PLN Operating cash flow : 1 381m PLN Upstream average daily production : 12 674 boe/d(2) (+48% y/y) Retail Clean(3)EBITDA: 95m PLN (+1
Slide 6: External environment
External environment Grupa LOTOS LOTOSS.A. S.A. 6
Slide 7: External environment – oil prices & product cracks
External environment – oil prices & product cracks USD Avg Brent-Ural spread (left axis) Avg Brent price (right axis) USD 120.0 4.5 110.0 110 112 100.0 2.5 108 107 102 90.0 97 79 0.5 80.0 87 63 70.0 -1.3 -1.9 -2.1 -1.5 -1.7 -1.3 -1.3 -1.5 60.0 -3.3 -2.0 50.0 -3.5 40.0 Apr 14 May 14 Jun 14 Jul 14 Aug
Slide 8: Model refining margin vs peers
Model refining margin vs peers (1) (1) (1) (2) USD/bbl LOTOS PKN OMV ERMI 10.00 8.77 8.99 9.00 8.00 7.32 8.20 6.97 8.00 7.00 6.00 5.48 6.60 6.50 5.05 4.97 4.9 5.00 5.19 4.32 4.00 4.70 2.70 4.07 3.00 3.50 3.74 2.10 1.92 2.00 1.63 1.17 1.16 1.00 1.44 1.48 1.37 0.90 0.00 3Q 2013 4Q 2013 1Q 2014 2Q 2014
Slide 9: External environment – GDP growth & FX development
External environment – GDP growth & FX development (1) (3) mln m3 % Polish GDP growth Diesel consumption (Poland) 3.2 3.1 3.1 3.6 3.0 3.5 2.7 3.4 3.4 3.3 3.0 1.9 432 013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 mln m3 (3) USD/PLN 4Q 2014 (2) Gasoline co
Slide 10: Consolidated financial results
Consolidated financial results Grupa LOTOS LOTOSS.A. S.A. 10
Slide 11: 4Q 2014 results breakdown vs 4Q 2013
4Q 2014 results breakdown vs 4Q 2013 m PLN 218 368 4Q 2014 (1) 150 +362 -1 075 +863 One off items & Clean LIFO EBIT LIFO effect FX differences Clean LIFO EBIT Depreciation EBITDA (1) 4Q 2013 162 +40(2) 235 +79 73 -47 (1) Out of which: 196m PLN downstream (131m PLN inventory LIFO impairment, 33m PLN
Slide 12: Quarterly clean EBITDA LIFO by segments
Quarterly clean EBITDA LIFO(1) by segments m PLN 5 246 4Q 2014 segment results 368 118 (2) Upstream Downstream Other Clean EBITDA LIFO 84 15 35 Changes to 368 segment results(3) 235 4Q '13 EBITDA Upstream Downstream Other 4Q '14 Clean LIFO EBITDA LIFO (1) All figures excluding one – off non cash ite
Slide 13: Full year 2014 operational result breakdown
Full year 2014 operational result breakdown m PLN 809 2014 1 391 582 1 013 -1 393 -962 (1) (2) EBIT LIFO effect One off items & Clean EBIT LIFO Depreciation Clean EBITDA FX differences LIFO Clean EBITDA LIFO at c. PLN 1.4bn, up by 300m y/y (details on the following slide) proving LOTOS capabilitie
Slide 14: Full year 2013 operational results breakdown
Full year 2013 operational results breakdown m PLN 2013 643 -95 1 091 377 448 167 (1) EBIT LIFO effect One off items & Clean EBIT LIFO Depreciation Clean EBITDA FX differences LIFO (1) (1) Out of which: +95m PLN maintenance shutdown direct expenses - 103 m PLN „cheap oil” used in the calculation of
Slide 15: Operational cash flow on – FY and quarterly basis
Operational cash flow on – FY and quarterly basis Quarterly operational cash flow Annual operational cash flow m PLN m PLN 1 347 1 424 1 381 883 576 902 451 338 196 253 102 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 2010 2011 2012 2013 2014 Despite a combination of factors that were impacting reported re
Slide 16: Indebtedness
Indebtedness m PLN (1) Net debt % Gearing ratio(2) 6 316 6 101 68% 5 716 64% 62% 5 319 Dec 2013 Sep 2014 Dec 2014 Dec 2014 (incl. SPO Dec 2013 Sep 2014 Dec 2014 (incl. SPO proceeds) proceeds) m PLN (2) Financial and net debt figures including interest Net debt/clean EBITDA LIFO bearing loans, borr
Slide 17: Upstream
Upstream Grupa LOTOS LOTOSS.A. S.A. 17
Slide 18: Hydrocarbons reserves and production figures
Hydrocarbons reserves and production figures Average daily oil&gas production (boe/d) 2P oil&gas reserves (m boe) 13 792 68.9 12 377 1 443 7.5 1 446 53.5 52.5 3 342 7.8 7.6 3 844 41.6 5 307 (1) 40.3 40.0 1 550 (1) 9 008 7 426 3 675 19.8 5.4 4.9 4Q 13 3Q 14 4Q 14 Dec 13 Sep 14 Dec 14 Norway Poland Li
Slide 19: Quarterly sales split by products and countries
Quarterly sales split by products and countries 4Q 2013 sales (ths boe) 3Q 2014 sales (ths boe) 4Q 2014 sales boe 2014 sales boe (ths boe) 641 1 923 375 398 69% 1 289 7% 72% 7% 271 9% 247 69% 9% 165 93% 568 93% 155 91% 123 31% 91% 100% 7 100% 100% 28% 100% 100% 31% Norway Poland Lithuania Norway Pol
Slide 20: Upstream quarterly clean EBITDA development
Upstream quarterly clean EBITDA development m PLN +43% y/y 118 106 83 Clean EBITDA 4Q'13 Clean EBITDA 3Q'14 Clean EBITDA 4Q'14 4Q 2013 3Q 2013 4Q 2014 65 118 104 35 106 88 69 83 41 165 14 EBITDA Impairments(1) Clean Depreciation EBITDA Impairments(2) Clean Depreciation & one offs EBITDA & one offs E
Slide 21: Upstream 2014 FY clean EBITDA development
Upstream 2014 FY clean EBITDA development m PLN +62% y/y 505 311 Clean EBITDA FY 2013 Clean EBITDA FY 2014 2013 2014 3 505 344 134 785 307 304 Reported Impairments(1) Clean Depreciation EBITDA EBITDA -280 EBITDA Impairments(2) Clean Depreciation EBITDA (1) 3m PLN (balance of impairments and new rese
Slide 22: Downstream
Downstream Grupa LOTOS LOTOSS.A. S.A. 22
Slide 23: Refinery production - volumes of key products
Refinery production - volumes of key products k tons Diesel Gasoline Jet Fuel k tons HSFO Bitumens 490 1400 425 1 216 1 146 1 147 1 115 440 393 1200 1 048 390 1000 340 299 290 800 290 334 600 240 188 388 340 390 367 190 167 162 400 323 118 140 200 118 126 90 46 169 204 188 40 0 4Q 2013 1Q 2014 2Q 20
Slide 24: Share of key products in the overall refinery throughput
Share of key products in the overall refinery throughput 50% 51% 51% 49% 49% 48% 40% 30% 20% 17% 14% 13% 15% 15% 11% 13% 14% 10% 12% 12% 2% 6% 7% 6% 0% 4% 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Diesel + Jet Gasoline HSFO Bitumens Grupa LOTOS S.A. 24
Slide 25: Retail performance and market share evolution
Retail performance and market share evolution Quarterly Retail EBITDA (excl. Asset impairments)(1) Annual Retail EBITDA (excl. Asset impairments)(2) m PLN m PLN +116% 40 95 21 19 18 17 20 10 39 44 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 2011 2012 2013 2014 Market share Petrol station network (no of unit
Slide 26: Downstream segment quarterly clean EBITDA LIFO
Downstream segment quarterly clean EBITDA LIFO m PLN +52% y/y 286 246 162 Clean EBITDA LIFO 4Q'13 Clean EBITDA LIFO 3Q'14 Clean EBITDA LIFO 4Q'14 4Q 2013 3Q 2014 4Q 2014 80 28 32 -27 -1.5 52 287 131 33 246 163 207 111 EBITDA LIFO effect FX One offs Clean EBITDA LIFO effect FX Clean LIFO differences
Slide 27: Downstream 2014 FY clean LIFO EBITDA
Downstream 2014 FY clean LIFO EBITDA m PLN +10% y/y 797 875 2013 Clean LIFO EBITDA 2014 Clean LIFO EBITDA 2013 2014 65 32 377 -113 -77 95 131 875 797 +962 515 EBITDA LIFO effect One offs(1) FX differences Maintenance Clean LIFO -315 shutdown costs EBITDA (2) EBITDA LIFO effect LIFO odpis FX asset Cl
Slide 28: Thank You
Thank You Investor Relations tel: +48 58 308 73 93 fax: +48 58 346 22 35 e-mail: ir@grupalotos.pl Grupa LOTOS S.A. 28