Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q4 2019 Earnings Presentation
18 slides from Omv Petrom Sa's earnings presentation, Feb 6, 2020
Slide 1: OMV Petrom Q4/19 Results
OMV Petrom Q4/19 Results Christina Verchere, CEO February 6, 2020
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 68.8 68.9 25.0 25.9 23.7 22.1 21.2 68.3 68.8 19.5 63.4 63.1 62.0 24.5 15.5 13.0 63.1 62.8 11.2 62.0 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Avg Urals price in USD/bbl Avg Brent price in USD/bbl Romanian centralized ma
Slide 4: Romanian environment
Romanian environment Fiscal and regulatory Macroeconomic environment framework 2019e GDP growth1: +3.9% yoy Q3/19 GDP growth2: +3.2% yoy Government Emergency Ordinance no. 1/2020: • 2% fee on gas and power CPI annual inflation: Dec 19/Dec turnover eliminated starting 18: 4.04%; Q4/19: 1.08% Jan 2020
Slide 5: Key messages Q4/19
Key messages Q4/19 performance Clean CCS Operating Cash Clean CCS Dividend Financial Operating result Flow ROACE proposal 1 RON 1.1 bn RON 1.8 bn 13.8% RON 1.8 bn Upstream: Shallow offshore drilling campaign finalized, 3 producing wells Operational highlights Large 3D seismic acquisition survey
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% -3% -11% -11% 156 153 151 150 152 +54% +54% 6.46 19.85 72 71 72 71 72 5.27 4.68 12.88 13.37 3.62 3.85 12.23 84 9.39 82 79 79 80 Q4/18 Q1/
Slide 7: CAPEX and E&A
CAPEX and E&A Group CAPEX incl. capitalized E&A CAPEX incl. capitalized E&A (RON bn) 2019 at RON 4.2 bn: 100 new wells and sidetracks -2% -1% ~900 workovers 4.3 4.2 4.2 Shallow offshore drilling campaign Coker Closed Blowdown system 3.0 CCPP Brazi planned shut down 2.6 Recognition of a
Slide 8: OMV Petrom achievements on strategic objectives
OMV Petrom achievements on strategic objectives 2021+ Strategic Objectives 2019 Achievements Exploit full potential of Romanian opportunities <11 USD/boe stabilized production cost despite production decline Improve competitiveness Neptun Deep assessment of commercial & economic viability co
Slide 9: OMV Petrom Q4/19 Results - Alina Popa, CFO
OMV Petrom Q4/19 Results Alina Popa, CFO February 6, 2020
Slide 10: Income Statement highlights
Income Statement highlights Clean CCS Operating Result (RON bn) -5% Q4/19 Clean CCS Operating Result reflects: 4.80 4.57 ► Lower oil prices -21% ► Higher sales volumes of fuels and gas 1.43 1.12 ► Favorable FX development and prices for natural gas Q4/18 Q4/19 2018 2019 Co&O and Cons Downstream Up
Slide 11: Special items and CCS effect
Special items and CCS effect Q4/19 Gain from forward contracts in Downstream Gas RON mn Q4/19 Q4/18 2019 2018 Clean CCS Operating Result 1,120 1,426 4,573 4,804 Impairment of assets held for sale in Upstream CCS effects: Inventory holding 17 -81 42 186 gains / (losses) Special items (89) 406 (37
Slide 12: Clean CCS Operating Result
Clean CCS Operating Result Upstream (RON mn) Favourable FX 794 Higher realized gas prices 3 0 31 -128 700 Lower exploration expenses Lower crude prices Q4/18 Market Volume Exploration Other Q4/19 Sales volumes -1% effects Downstream 98% refining utilization rate (RON mn) 514 -3 447 Ref
Slide 13: Cash Flow highlights
Cash Flow highlights Cash Flow from Operating Activities (RON bn) -8% 7.39 6.80 -3% Q4/19 CFO: lower decrease than Operating Result due to higher depreciation and impairments 1.82 1.78 Q4/18 Q4/19 2018 2019 Free Cash Flow (RON bn) +4% 3.13 3.25 Q4/19 CFO1 -3% yoy +6% 0.69 0.74 Q4/19 CFI2 -8% y
Slide 14: 2019 Dividend proposal: EUR 370 mn
2019 Dividend proposal: EUR 370 mn DPS1 2019: RON 0.031, up 15% yoy Dividend yield2 2019: 6.9% EUR 1.66 bn returned to shareholders in the past seven years 2012-2019 DPS and Dividend yield DPS, RON/share 2019 Payout ratio (%) 2 Dividend yield , % EUR mn 3 766 9.0 6.6 7.0 6.9 6.5 5.7 370 0.031
Slide 15: Outlook 2020
Outlook 2020 Assumptions/Targets Indicators Actual 2019 2020 Brent oil price USD 64.21/bbl USD 60/bbl Production 152 kboe/d decline below 5% yoy 1 Refining margin USD 4.67/bbl USD >5.0/bbl CAPEX RON 4.2 bn RON ~4.2 bn FCF after dividends RON 1.7 bn Positive 1 Not including portfolio optimization 15
Slide 16: OMV Petrom
@® OMV Petrom The energy for a better life.
Slide 17: Back-up
@® OMV Petrom The energy for a better life.
Slide 18: Clean CCS Operating Result
Clean CCS Operating Result Upstream Favourable FX (RON mn) 3,224 Higher realized gas prices 119 -252 -63 2,845 -183 Clarification of a tax topic Lower crude prices 2018 Market Volume Exploration Other 2019 Sales volumes -4% effects Downstream (RON mn) 97% refining utilization rate 1,695