Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q3 2018 Earnings Presentation
20 slides from Omv Petrom Sa's earnings presentation, Oct 31, 2018
Slide 1: Q3/18 Results presentation with speech
Christina Verchere Chief Executive Officer and President of the Executive Board Stefan Waldner Chief Financial Officer The spoken word applies. Check against delivery. 1
Slide 2: Intro
Christina Verchere – OMV Petrom – CEO Slide 1 – Intro Good afternoon, ladies and gentlemen, and a warm welcome from my side. It is a real pleasure to present to you today the Q3/18 performance of OMV Petrom. 2
Slide 3: Legal Disclaimer
Slide 2 – Legal Disclaimer Before I start the actual presentation, please let me draw your attention to our Legal Disclaimer, which you can read in detail on slide 2. 3
Slide 4: Key messages Q3/18 Clean CCS
Key messages Q3/18 8 Clean CCS —°o9 PY 5 @®) a . Operating 2 E é perating result Clean CCS £8 CE ley RON 4.7 bn ROACE Wo RON 2.4 bn 11.8% ° en oo 52 Bo Refining ma 82 Retail sales volumes flat yoy gs 9 Gas sales volume: H r net electrical output, +39% yoy Ww 8 LTIR' 9m/18: 0.31 = * Lost time injury
Slide 5: Key messages Q3/18 (speech)
Slide 3 – Key messages Q3/18 Let me start with some key highlights for the third quarter of 2018 on slide 3. In this quarter, market conditions were very supportive for Upstream, as crude prices increased. In Downstream, refining margins and electricity spark spreads remained at healthy levels, if c
Slide 6: Clean CCS ROACE and safety (speech)
Reiterating the point I was making on profitable growth, I am particularly proud to report that the Clean CCS ROACE improved on a year-on-year basis by almost 3 percentage points, to 11.8%. Finally, the Lost Time Injury Rate reached 0.31 in the first nine months of 2018. 6
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Slide 8: Economic environment
Economic environment 25.4 Zs 61 74) ms es 73 Gl 61 3.90 3.92 3.90 400 }$—_ O37 O47 ais Q2ns Q3i18 O37 Q4i7 atts 2s O38 —»— Avg Urals price in USD/bbI (left scale) —=— Avg USD/RON (rightscale) —+— Avg Brent price in USD/bbI (left scale) —e— Romanian centralized market'? —e— CEGH * 59 59 56 | j > GDP
Slide 9: Economic environment (speech)
Slide 4 – Economic environment On slide 4, we provide some macroeconomic highlights for Romania and an overview of the pricing environment in our industry. Brent averaged USD 75/bbl in the third quarter, 44% higher year-on-year. A similar trend can be seen for Urals. The spread between Brent and Ura
Slide 10: Income Statement highlights
OMV Pet Results October 31, 2018 Stefan Waldner, @ OMV Petrom The energy for a better life. Income Statement highlights Clean CCS Operating Result (RON bn) » Clean CCS Operating Result reflects: 3.38 Favorable commodities prices (o. cal Petrobrazi turnaround (Q2/18) 1.04 Consolidation reflects mainl
Slide 11: Income Statement highlights (speech)
Slide 6 – Income Statement highlights Thank you, Christina, and good afternoon to you all. I will continue the presentation with slide 6, starting with some highlights of the Income Statement, with a focus on Q3/18 versus Q3/17 developments. Sales continued to increase, by 24% year-on-year, driven b
Slide 12: Clean CCS Operating Result
Clean CCS Operating Result Upstream (RON mn) » Higher realized prices 428 » Lower exploration expenses ii J > Sales volumes -6% Q3N7 Market Volume Exploration Other Q3/18 effects Downstream > 98% refining utilization rate after turnaround (RON mn) 651 639 > Flat retail sales yoy a8 mm-5 2mm 39 er --
Slide 13: Clean CCS Operating Result (speech)
Slide 7 – Clean CCS Operating Result Let me move on to slide 7, which shows the major building blocks for the development of the Clean CCS Operating Result in Q3/18. I will start with Upstream. The increase in the realized oil price by around 50% year-on-year to USD 66.3/bbl resulted in a positive m
Slide 14: Cash Flow highlights
Cash Flow highlights Operating Cash Flow (RON bn) Q37 Q3/18 9m/17 om/18 Free Cash Flow (RON bn) 0.96 1.22 Q3/17 3/18 9m/17 9m/18 >» Q3/18 OCF! mirroring Operating Result > Q3/18 NWC?: cash inflow RON 133 mn » Q3/17 NWC?: cash outflow RON 181 mn > Q3/18 CFI° more than double yoy » Dividends paid in J
Slide 15: Cash Flow highlights (speech)
Slide 8 – Cash Flow highlights On slide 8, I would like to continue with the highlights of our cash flow statement. In Q3/18, we achieved an operating cash flow of about RON 2.4 billion, 62% up year-on-year, mainly reflecting the good operational performance and favorable market conditions. We recor
Slide 16: Outlook 2018
Outlook 2018 Brent oil price Refining margin Production FCF after dividends Actual 2017 USD 54/bbl USD 7.75/bbI 168 kboe/d RON 3.0 bn RON 2.7 bn USD 72/bbl USD 6.63/bbl 161 kboe/d RON 3.1 bn RON 1.3 bn 16 "Nor Including pontono optimization Iniicives 9 | OMVPetrom | Q3/18 Results ® OMV Petrom The en
Slide 17: Outlook 2018 (speech)
Slide 9 – Outlook 2018 Let me finish our presentation with the outlook for the full year 2018, on slide 9. Here I would like to highlight our main market assumptions for the full year 2018 and how they compare to the actual figures for 2017 and the first nine months of 2018. Throughout the first nin
Slide 18: OMV Petrom
- OMV Petrom 2 OMV Petrom @ OMV Petrom 18 The energy for a better life.
Slide 19: Operational KPIs; CAPEX and E&A
Operational KPls | Upstream Downstream Oil Downstream Gas OPEX (USD/boe) OMV Petrom Indicator Gas sales volumes refining margin (USD/bb!) (TWh) 1246 “a189 4167 1341 1420 10.23 10.41 10.70 10.51 74 Q317) 417 QIN $218 =O318 a28 318 Q317) O47 «QING «218 3/18 Hydrocarbon production Retail sales volumes
Slide 20: Clean CCS Operating Result 9m
Clean CCS Operating Result Upstream (RON mn) 1,334 & 9m/17 Market Volume Exploration Other 9m/i18 a 6 29e--- 230 effects Downstream 1,181 981 200 omii7 Market Operational Petrobrazi 9m/18 effects effects turnaround effect HM Downstream Oil [lll Downstream Gas Higher realized prices Lower total produ