Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q2 2020 Earnings Presentation
19 slides from Omv Petrom Sa's earnings presentation, Jul 29, 2020
Slide 1: OMV Petrom Q2/20 Results
Cover/divider option 1: Placeholder text (max. 3 lines, 28pt) Place, Month xx, 2018 (16pt) OMV Petrom Q2/20 Results Christina Verchere, CEO July 29, 2020 OMV Petrom S.A.
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, This presentation may contain forward-looking statements. These statements and should not be construed as, constituting or forming part of, any actual reflect the Company’s current knowledge and its expe
Slide 3: Economic environment
Economic environment Oil price (USD/bbl) Gas prices (EUR/MWh)1 68.9 20.7 21.5 62.0 63.1 68.8 50.1 14.8 13.8 62.0 62.8 29.9 15.5 9.6 48.1 13.0 11.2 10.6 29.6 6.7 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Avg Urals price in USD/bbl Avg Brent price in USD/bbl Romanian centralized mark
Slide 4: Romanian environment
Romanian environment Fiscal and regulatory Macroeconomic environment framework Authorities’ reaction to COVID: GDP growth: Emergency state mid-March to mid-May; followed by Q1/201: + 2.7% yoy alert state 2020e2: - 6% yoy Health and social, fiscal and monetary measures National Investment a
Slide 5: Key messages Q2/20 performance
Key messages Q2/20 performance Financial Clean CCS Operating Cash Clean CCS Operating result Flow ROACE RON 0.3 bn RON 1.2 bn 10.3% Managed crisis with no business interruptions and net working capital at optimal levels Operational highlights Upstream: Strong hydrocarbon production performance; OP
Slide 6: Operational KPIs
Operational KPIs Upstream Downstream Oil Downstream Gas Hydrocarbon production OMV Petrom Indicator Gas sales volumes (kboe/d) refining margin (USD/bbl) (TWh) -3% -1% +39% -52% +9% -17% 151 150 152 150 147 6.75 19.85 18.61 6.46 72 71 72 72 71 4.68 13.37 13.06 3.85 9.39 79 79 80 79 76 1.85 Q2/19 Q3/1
Slide 7: CAPEX and E&A
CAPEX and E&A Group CAPEX incl. capitalized E&A CAPEX incl. capitalized E&A (RON bn) 6m/20 at RON 1.6 bn: 28 new wells and sidetracks -30% -30% ~430 workovers 4.2 Securing long-term logistic access to Petrobrazi refinery Bio-compliance blending project 3.0 2020E at RON ~3.0 bn: -8% -8%
Slide 8: OMV Petrom's response to COVID-19 and the new market environment
OMV Petrom’s response to COVID-19 and the new market environment Ability to cope with challenges ► Proven track record in managing economic crises ► Integrated business model supports financial results ► Resilience in highly volatile market, underpinned by business optimization and strict cost disci
Slide 9: OMV Petrom – a sustainable choice for our stakeholders
OMV Petrom – a sustainable choice for our stakeholders Sustainability 5 pillars: HSSE, Carbon Efficiency, Innovation, Employees, strategy 2019-25 Business Principles and Social Responsibility Employees’ health and safety remain top priority Social Support for ~350 communities; EUR 13.5 mn inve
Slide 10: OMV Petrom Q2/20 Results – CFO
Cover/divider option 1: Placeholder text (max. 3 lines, 28pt) Place, Month xx, 2018 (16pt) OMV Petrom Q2/20 Results Alina Popa, CFO July 29, 2020 OMV Petrom S.A.
Slide 11: Income Statement highlights
Income Statement highlights Clean CCS Operating Result (RON bn) -44% Q2/20 Clean CCS Operating Result reflects: 2.22 -72% ► Lower oil and gas prices 1.00 1.25 ► Weak refining margin 0.28 ► Decreased fuel sales volumes Q2/19 Q2/20 6m/19 6m/20 ► Higher contribution from power Co&O and Cons Downstrea
Slide 12: Clean CCS Operating Result
Clean CCS Operating Result Upstream Lower oil and gas prices (RON mn) 774 Favourable FX Lower exploration expenses -1,079 Lower production cost 124 (130) -6 57 NRV reversal Q2/19 Market Volume Exploration Other Q2/20 effects Lower depreciation Downstream Gas sales volumes: +39% (RON mn
Slide 13: Cash Flow highlights
Cash Flow highlights Cash Flow from Operating Activities (RON bn) -12% -12% 2.93 -14% 2.59 Q2/20 CFO: lower decrease than Operating Result due 1.43 1.23 to improved net working capital Q2/19 Q2/20 6m/19 6m/20 Free Cash Flow 1 (RON bn) -44% 1.13 +8% Q2/20 CFO2: -14% yoy 0.64 0.46 0.50 Q2/20 CFI
Slide 14: Strong response to adjust to the weak market environment
Strong response to adjust to the weak market environment Reductions of Realized reductions ~RON 1.8 bn of ~RON 0.6 bn3 (2020 vs. 2019) (6m/20 vs. 6m/19) Rephased and optimized long-term delivery projects Cut of non-committed CAPEX RON 1.2 bn1 Reduced (30%)2 RON 0.1 bn Focus on projects in deve
Slide 15: Sensitivities in 2020
Sensitivities in 2020 OMV Petrom Group main sensitivities Operating Result impact Brent oil price USD +1/bbl ~EUR +20 mn Equity gas price EUR +1/MWh ~EUR +20 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn USD appreciation by 5 USD Exchange rates (EUR/USD) ~EUR +30 mn cents 15 | OMV P
Slide 16: Outlook 2020
Outlook 2020 Assumptions/Targets Indicators Actual 2019 Actual 6m/20 2020 Brent oil price USD 64.21/bbl USD 40.07/bbl USD 40/bbl Production 152 kboe/d 149 kboe/d decline below 5% yoy 1 USD <4/bbl Refining margin USD 4.67/bbl USD 4.36/bbl (previously: USD >5/bbl) CAPEX 2 RON 4.2 bn RON 1.6 bn RON ~3.
Slide 17: Q&A
Cover/divider option 1: Placeholder text (max. 3 lines, 28pt) Place, Month xx, 2018 (16pt) Q&A OMV Petrom S.A.
Slide 18: Back-up
Cover/divider option 1: Placeholder text (max. 3 lines, 28pt) Place, Month xx, 2018 (16pt) Back-up OMV Petrom S.A.
Slide 19: Clean CCS Operating Result
Clean CCS Operating Result Upstream (RON mn) Lower oil and gas prices 1,599 One-off positive effect in Q1/19 -1,504 Favourable FX -27 30 27 -71 Lower exploration expenses 6m/19 Market Volume Exploration Other 6m/20 effects Downstream (RON mn) Higher refining margin 1,104 Gas sales volume