Slide 1: OMV Q1 2018 conference call
OMV Q1 2018 conference call Rainer Seele Chairman of the Executive Board and CEO Reinhard Florey Chief Financial Officer May 3, 2018 Umm Lulu offshore field in Abu Dhabi
Slide 2: Disclaimer
Disclaimer This report contains forward-looking statements. Forward-looking statements may be identified by the use of terms such as “outlook,” “expect,” “anticipate,” “target,” “estimate,” “goal,” “plan,” “intend,” “may,” “objective,” “will” and similar terms or by their context. These forward-look
Slide 3: Macro environment – Higher oil prices, lower refining margins
Macro environment – Higher oil prices, lower refining margins Oil price Brent USD/bbl OMV indicator refining margin USD/bbl 80 8 7.0 67 61 5.7 60 6 4.8 6.0 54 52 5.4 40 50 4 20 2 0 0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Gas prices Ethylene/propylene net margin 2 EUR/MWh EUR/t
Slide 4: Key messages
Key messages OPERATIONAL PORTFOLIO PERFORMANCE COST DISCIPLINE MANAGEMENT Clean CCS Operating Result Production cost further Established a material position at EUR 818 mn reduced to USD 7.4/boe in Abu Dhabi Strong free cash flow New efficiency program: Expanded position generation of EUR 538 mn savi
Slide 5: Acquisition of a 20% stake in two offshore fields in Abu Dhabi from ADNOC
Acquisition of a 20% stake in two offshore fields in Abu Dhabi from ADNOC ► OMV signed a concession agreement for the acquisition of a 20% stake in two offshore oil fields from ADNOC: ► Satah Al Razboot (SARB) including the satellite fields Bin Nasher and Al Bateel ► Umm Lulu ► Commencement of conce
Slide 6: Abu Dhabi – High-quality assets with substantial cash generation
Abu Dhabi – High-quality assets with substantial cash generation Adding 450 mn bbl to ► Substantially strengthening OMV‘s reserves base OMV’s reserve base ► Upside potential from satellite fields ≥ 40 kbbl/d long-term ► Plateau production to be reached early in the next decade plateau production ► L
Slide 7: Acquisition in New Zealand – Major step towards building Australasia into a new core region
Acquisition in New Zealand – Major step towards building Australasia into a new core region ► Acquisition of Shell’s Upstream business in Adding up to 100 mn boe New Zealand: of recoverable resources ► Increased stake in Pohokura by 48% and in Maui by 83.75% (31 kboe/d in Jan-Feb 2018) Immediate pro
Slide 8: Strengthened footprint in the Middle East Africa and Australasia
Strengthened footprint in the Middle East Africa and Australasia Group capital employed based on 2017 capital employed plus Abu Dhabi and New Zealand acquisition ~20% ► Majority of the portfolio in ~70% European countries Europe MEA 1 + (Upstream and Australasia ► Doubled capital employed in Downstr
Slide 9: Solid Group clean CCS Operating Result despite FX headwinds
Solid Group clean CCS Operating Result despite FX headwinds Clean CCS Operating Result Clean CCS net income attributable Clean CCS Earnings Per Share EUR mn to stockholders EUR Upstream Downstream Corporate & Others EUR mn 805 818 502 1.54 688 321 367 377 1.12 1.15 438 344 494 356 376 Q1/17 Q4/17 Q1
Slide 10: Upstream – Significantly higher result supported by oil prices and sales volumes
Upstream – Significantly higher result supported by oil prices and sales volumes Clean Operating Result Q1 2017 vs. Q1 2018 EUR mn Higher realized oil prices offset by weaker USD +117 +117 Realized oil price increased by 15% 438 Realized gas price decreased by 16% 9 Realized hedging loss in
Slide 11: Downstream – High Downstream Gas result offset by lower refining margins
Downstream – High Downstream Gas result offset by lower refining margins Clean CCS Operating Result Q1 2017 vs. Q1 2018 EUR mn Oil Lower refining margin (-12%) and negative FX impact -117 (118) 494 Higher ethylene/propylene net margins (+16%); lower 50 butadiene margins 12 53 Strong refinery u
Slide 12: Strong free cash flow of EUR 0.5 bn
Strong free cash flow of EUR 0.5 bn Sources and uses 1 of cash in Q1/18 EUR mn Strong cash flow from operating activities of 1,076 EUR 1,076 mn (Q1/17: EUR 923 mn) Borealis dividend of EUR 252 mn Free cash Cash flow from investing activities of EUR 538 mn +538 flow (Q1/17: EUR 397 mn), includi
Slide 13: Continued low gearing and strong cash position
Continued low gearing and strong cash position Net debt development EUR bn Strong cash position of EUR 4.3 bn 4.0 Redemption of the 2011 hybrid bond of EUR 0.75 bn; repaid on April 26, 2018 3.0 2.3 Net debt increased to EUR 2.3 bn due to 2.0 reclassification of 2011 hybrid bond as of Q1 2018 a
Slide 14: Outlook 2018
Outlook 2018 2017 Outlook 2018 Brent oil price (USD/bbl) 54 68 (Previous 60) CEGH gas price (EUR/MWh) 18 18 Total hydrocarbon production (kboe/d) 348 >420 (Previous 420) OMV indicator refining margin (USD/bbl) 6 <6 Ethylene/propylene net margin (EUR/t) 427 425 Utilization rate refineries (%) 90 >90
Slide 15: OMV Aktiengesellschaft Downstream
OMV OMV Aktiengesellschaft Downstream
Slide 16: BACKUP
BACKUP OMV Aktiengesellschaft
Slide 17: Significant increase in Group Operating Result
Significant increase in Group Operating Result Operating Result Net income attributable to Earnings Per Share EUR mn stockholders EUR Upstream Downstream Corporate & Others EUR mn 1,037 712 2.18 899 508 631 478 406 1.24 294 311 0.95 540 384 417 Q1/17 Q4/17 Q1/18 Q1/17 Q4/17 Q1/18 Q1/17 Q4/17 Q1/18 1
Slide 18: Strong balance sheet
Strong balance sheet Balance Sheet Q4 2017 vs. Q1 2018 Highlights Q1 2018 EUR bn Assets 32.4 32.4 31.6 31.6 Trade receivables increased to EUR 3.2 bn due to higher sales volumes and prices in Downstream Gas Stockholders’ equity 10.8 and more liftings in Norway 11.2 Tangible & intangible 16.2 Cas
Slide 19: Operational KPIs
Operational KPIs Hydrocarbon production Refined product sales 1 Retail sales 1 kboe/d mn t mn t 437 6.54 2.34 377 335 4.95 4.53 1.55 1.41 Q1/17 Q4/17 Q1/18 Q1/17 Q4/17 Q1/18 Q1/17 Q4/17 Q1/18 Hydrocarbon sales Refinery utilization rate Natural gas sales mn boe % TWh 38.5 96 92 93 32.3 31.1 33.0 33.0
Slide 20: Upstream – Significantly higher result supported by oil prices and sales volumes
Upstream – Significantly higher result supported by oil prices and sales volumes Clean Operating Result EUR mn Q1 2018 vs. Q4 2017 +94 Higher oil price offset by weaker USD 438 8 Realized oil price increased by 4% Realized gas price decreased by 9% 344 127 Realized hedging loss in Q1/18 of E
Slide 21: Downstream – Strong operational performance offsetting weaker market environment
Downstream – Strong operational performance offsetting weaker market environment Clean CCS Operating Result EUR mn Q1 2018 vs. Q4 2017 +20 Oil 8 376 Lower refining margin (-16%) offsetting 356 47 higher ethylene/propylene net margins (+11%); 20 Strong refinery utilization rate (93%) Lower reta
Slide 22: Sensitivities of OMV Group in 2018
Sensitivities of OMV Group in 2018 Annual impact Clean CCS Operating Operating cash flow in EUR mn Result 1 Brent oil price (USD +1/bbl) +45 +30 OMV realized gas price (EUR +1/MWh) +125 +95 CEGH/NCG gas price 2 (EUR +1/MWh) +40 +35 OMV indicator refining margin (USD +1/bbl) +105 +80 Ethylene/propyle