Gazprom Neft · RUS:SIBN
Gazprom Neft — Q1 2009 Earnings Presentation
22 slides from Gazprom Neft's earnings presentation, Jun 18, 2009
Slide 1: 1Q 2009 US GAAP Financial and Operating Results
1 Q 2009 US GAAP Financial and Operating Results June 18, 2009
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gazprom Neft and its consolidated subsidiaries. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements
Slide 3: Management Participants in Today's Call
Management Participants in Today’s Call Vadim Yakovlev Deputy Chairman of the Management Board and CFO Boris Zilbermints Deputy Chairman of the Management Board, Deputy CEO for Exploration and Production Anatoly Cherner Deputy Chairman of the Management Board, Deputy CEO for Logistics, Processing an
Slide 4: 1Q 2009 Highlights
1Q 2009 Highlights Macro • Brent 19% down Q-o-Q to US$ 44/bbl from US$ 55/bbl and Y-o-Y 54% down from US$ 97/bbl 1Q 2009 Headline numbers – recovery in progress • Revenue 16% down Q-o-Q; Y-o-Y 47% down • EBITDA up 362% Q-o-Q to US$ 942 MM; Y-o-Y 53% down • Adjusted EBITDA* up 131% Q-o-Q to US$ 945 M
Slide 5: Key Macroeconomic Factors
Key Macroeconomic Factors Crude pricing, RUR/USD Rate (eop) relation Crude Export Profitability ($/bbl) 140 36 Average freight $120 Straits demurrage/port dues, insurance, port handling, customs fees, other Transneft tariff Crude export duty MET Crude export netback less MET in Western Siberia 100 $
Slide 6: Gazprom Neft Financial Results (US$MM)
Gazprom Neft Financial Results (US$MM) (48%) • Oil prices were the core drivers (16%) for revenue decrease in 1Q 2009 $10 085 • Rouble devaluation stressed $9 957 Revenues* $8 045 $4 988 domestic revenues in dollar terms $4 185 1Q08 2Q08 3Q08 4Q08 1Q09 (54%) • Significant Tax Cuts determined +362% F
Slide 7: 1Q09 Factor Analysis
1Q09 Factor Analysis FCF (US$MM) Revenue Breakdown (%) 397 -643 Gas Sales Other 1% 3% CrudeNon- Products CIS Export Domestic 35% 28% Crude CIS Export 3% Products CIS Export Crude 4% Domestic Products 1% 373 Non- CISExport 24% 99 186 -38 70 FCF 4Q08 Price Fx Tax Export Cost Work. Cap. Other FCF 1Q09
Slide 8: Financial Performance
Financial Performance Revenues (US$MM) EBITDA (US$MM) Net Income (US$MM) $8 045 $2 026 $1 411 $4 988 -48% -16% $4 185 -54% -76% $942 $335 +362% $204 4Q08 N/A 1Q09 1Q08 4Q08 1Q09 1Q08 4Q08 1Q09 1Q08 -$543 Adjusted EBITDA* (US$MM) Adjusted EBITDA* per barrel ($/bbl) Adjusted EBITDA* Margin (%) $2 195
Slide 9: Operational Performance
Operational Performance Crude output (MM bbl) Crude Oil Export (MM Tonnes) Crude Oil Export to CIS (MM Tonnes) 83.8 86.6 4,4 80.5 0,9 10,3 10,4 4,1 9,7 17,7 18,0 -11.1% 0,8 17,0 +14.3% 0,7 3,5 +17.1% -6.8% 0,7 -3.9% -7.0% 55,9 53,1 58,2 4Q08 1Q09 1Q08 4Q08 1Q09 1Q08 4Q08 1Q09 1Q08 Own Production NIS
Slide 10: Consistent Cash Performance
Consistent Cash Performance Cash Sources and Uses (US$MM) Available Net Cash Flow (US$MM) $666 -$480 $417 $427 -$826 $2 075 $514 $491 -$268 $1 658 $1 551 $1 060 $107 $153 $559 2008 Operating Capital Other Debt Net Dividends 1Q09 $480 Cash Flow Expenditures (Investing Change Activities) Sources Uses
Slide 11: Debt Profile
Debt Profile Net Debt/EBITDA, Gearing (%) Maturity Profile (US$MM) 0,60 30% 1 372 0,50 0,40 20% 939 0,30 0,20 10% 567 0,10 0,00 0% 221 152 2006 2007 2008 1Q09 2010 2011 2012 2013 2014 Net Debt/EBITDA (lhs) Gearing (rhs) Debt Structure as of March 2009, % Credit Ratings BBB/Baa2 Investment Grade 6% B
Slide 12: Organic Capex Breakdown
Organic Capex Breakdown Capex Dynamics (US$MM) $885 • 1Q09 Capex down 46% 70 Q-o-Q from US $885 MM in $782 23 4Q08 to US $480 MM in 88 20 1Q09 265 254 -46% -39% $480 43 • Total exploration and 72 production accounted for more than 75% of Capex in 181 1Q09 462 485 184 • Nearly 90% of Capex is 4Q08 1Q
Slide 13: Operating Results
6 GAZPROM NE F T Operating Results
Slide 14: Upstream
Upstream Oil Production (MM Bbl) 86.6 85.3 85.3 83.8 80.5 10,4 10,3 10,2 10,3 9,7 18,0 17,8 17,7 17,7 17,0 0,7 58,2 57,2 57,4 55,9 53,1 1Q08 2Q08 3Q08 4Q08 1Q09 Gazprom Neft NIS Slavneft Tomskneft Source: Company data Note: Including our share in equity investees Number of New Wells Launched* 203 16
Slide 15: Maximizing Netbacks & Enhancing Operational Efficiency through Oil Flows Distribution
Maximizing Netbacks & Enhancing Operational Efficiency through Oil Flows Distribution 1Q2008 Netback (US$ per bbl) 1Q2009 Netback (US$ per bbl) • Refining Netbacks %, volume %, volume Decreased In 1Q 2009 unlike $57,4 the same period of 2008 $50,6 $45,7 $44,4 $43,8 • Refining Cover remained on the s
Slide 16: Downstream
Downstream Refining Throughput (MM Tonnes) Oil Products Slate, % (1Q09) Capacity Utilization (1Q09) 7.1 7.6 7.1 7.5 6.6 Other Diesel 1,6 1,9 1,7 ONPZ 1,7 9% 33% 91% 1,6 Lubes 0,6 0,9 0,8 0,9 0,6 1% 0,8 +12% +3% YANOS 88% 4,9 +42% 4,8 Fuel Oil 4,2 +5% 4,5 4,4 22% Gasoline Jet Fuel 28% MNPZ 82% 1Q08 2
Slide 17: Oil Products Marketing in Russia
Oil Products Marketing in Russia Oil Products Sales in Russia (MM Tonnes) 4,2 4,5 -22% 3,5 +7% 3,5 3,5 0% +20% 1Q08 2Q08 3Q08 4Q08 1Q09 Oil Products Distribution Through retail network (MM Tonnes) 0,7 0,8 -13% 0,6 0,6 0% 0,6 +14% +17% Refineries Distribution sites 1Q08 2Q08 3Q08 4Q08 1Q09 Central As
Slide 18: Outlook
Outlook 18
Slide 19: 2009 Perspectives – Three aspects to deal with
2009 Perspectives – Three aspects to deal with Revenues Opex $ Capex Financial Situation • Lower tax burden •Strong cash flow •Upstream impacted by generation levels allow oil prices • $230 M saving plan to continue with our - natural monopoly investment commitments tariffs optimization •Ruble deval
Slide 20: Recent transactions
6 GAZPROM NE F T Recent transactions
Slide 21: Acquisition of Naftna Industrija Srbije AD, Novi Sad, Serbia
Acquisition of Naftna Industrija Srbije AD, Novi Sad, Serbia (“NIS” AD) Achieved Results • On February 3, 2009 Gazprom Neft completed the acquisition of 51% of shares in Serbia’s NIS • Acquisition properties: • Purchase price of NIS A.D. - Euro 400 million • Financing an investment program (reconstr
Slide 22: Sibir Energy Overview
Sibir Energy Overview Upstream business Reserves - 120 MM Tonnes (C1 reserves) Production - 4.8 MM Tonnes in 2009E Downstream business Moscow Refinery (joint venture with Gazprom Neft ) - 10 MM Tonnes of refining throughput (capacity 12 MM Tonnes ) - 133 filling stations - One of the leading positio