Saudi Arabian Oil Co. · TADAWUL:2222
Saudi Arabian Oil — FY2020 Earnings Presentation
26 slides from Saudi Arabian Oil's earnings presentation, Mar 22, 2021
Slide 1: FY 2020 Results
FY 2020 Results March 22, 2021
Slide 2: Cautionary notes
Cautionary notes IMPORTANT: The following applies to this presentation and associated slides by Saudi Arabian Oil Company (the “Company”) (collectively, the “Information”). The Information contains forward‐looking statements. All Information other than statements relating to historical or current fa
Slide 3: Amin Nasser, President & CEO
Amin Nasser President & CEO Saudi Aramco FY 2020 Results | 3 Saudi Aramco: Company General Use
Slide 4: COVID-19: Care for employees and communities
COVID-19: Care for employees and communities Workforce safety, health and wellbeing is our top priority Dedicated taskforce on virus prevention and containment Supported communities in which we operate globally Saudi Aramco FY 2020 Results | 4 Saudi Aramco: Company General Use
Slide 5: COVID-19: Focus on business continuity
COVID-19: Focus on business continuity Proactive approach to maintain safe operations: activated contingency plans Capability for 55,000 employees to work remotely Project execution not impacted Saudi Aramco FY 2020 Results | 5 Saudi Aramco: Company General Use
Slide 6: Succeeding in a challenging environment
Succeeding in a challenging environment Brent Global demand1 ($/bbl) (mmbpd)2 75 110 60 100 45 30 90 15 80 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Actual Forecast Brent price Historic oil demand1 Forecast oil demand1 1. Source: IEA, IHS Markit, EIA 2. mmbpd = million
Slide 7: Continuing to deliver during an extremely challenging 2020
Continuing to deliver during an extremely challenging 2020 Operational reliability Environmental stewardship Growth Delivered record daily crude Maintained leadership in Completed acquisition of 70% and gas production upstream carbon intensity SABIC stake 1 Reliability of 99.9% World’s first cargo o
Slide 8: Khalid Al-Dabbagh, CFO
Khalid Al-Dabbagh CFO Saudi Aramco FY 2020 Results | 8 Saudi Aramco: Company General Use
Slide 9: Highlights of first year post-IPO
Highlights of first year post-IPO Performing as a public Unparalleled total Strong investor Recognized company shareholder return1 (%) confidence performance Successful bond issuance Several prestigious awards Declared $75bn dividend and recognitions • 10x oversubscription Peers2 • Largest 50 year b
Slide 10: Differentiated energy company
Differentiated energy company Reported 49.0 0.174 4 net income Total recordable 0.044 2020 ($Bn) case frequency3 Peer average1 Peers1 0.23 ROACE 13.2 Upstream methane 0.06 4 2020 (%) intensity (%) OGCI5 Peers1 2 75.0 683 Dividend Patents 147 2020 ($Bn) granted (#) Peers1 Peer average1,6 3. Saudi Ara
Slide 11: Cash position improved despite challenging environment
Cash position improved despite challenging environment ($Bn) 104.5 69.6 26.9 55.3 47.4 Cash balance Sources1 Dividends Capex2 Cash balance end 2019 paid end 2020 1. Sources includes net cash provided by operating activities, net maturities of short term investments, net borrowings & interest paid, c
Slide 12: Capital discipline and flexibility
Capital discipline and flexibility Capex • Continuing highly disciplined ($Bn) approach to capital allocation 2019 2020 2021 • Low upstream capital intensity of 50 $4.0 per boe2,3,4 45 40-45 40 35-40 c.35 • Low upstream cost per barrel5 of 35 33 $7.0 per boe4 30 27 25 20 15 10 5 0 2019 2020 2020 202
Slide 13: Delivering shareholder value
Delivering shareholder value Delivered solid earnings and cash balance Declared $75bn dividend Maintained strong balance sheet and stand alone credit rating Investor confidence: − Share price resilience − Significantly oversubscribed bond issuance − Shows trust in long-term prospects Saudi Aramco FY
Slide 14: Going forward: sustainable and growing free cash flow
Going forward: sustainable and growing free cash flow Liquids Potential for continued volume growth Advantaged low cost, low carbon resource base Gas Meet growing domestic demand Commercial returns Downstream Enhancing performance − SABIC integration − Asset optimization − Expanding global trading S
Slide 15: Amin Nasser, President & CEO
Amin Nasser President & CEO Saudi Aramco FY 2020 Results | 15 Saudi Aramco: Company General Use
Slide 16: Sustainability proposition
Sustainability proposition Focus areas Climate change Minimizing A framework encompassing environmental impact four key focus areas Sustainability KPIs on Corporate Scorecard for management remuneration Accelerating Growing human potential societal value Saudi Aramco FY 2020 Results | 16 Saudi Aramc
Slide 17: A leader in low carbon oil today
A leader in low carbon oil today Upstream carbon intensity1 Upstream methane intensity (kg CO2e/boe) (%) 0.20 20 10.5 0.06 Aramco OGCI Target3 Aramco OGCI Ambition3 20202 2025 20202 2025 Note: low carbon refers to emissions in connection with upstream activities 1. Scope 1 and Scope 2 emissions 2. I
Slide 18: Goal: leadership in future decarbonized and affordable energy
Goal: leadership in future decarbonized and affordable energy Hydrogen Focus on potential rapid growth in hydrogen demand Aramco advantages: − Low cost feedstock, including gas 1 − Large scale cost competitive CCUS potential due to • Advantaged geology • Integrated operational platform • Economies o
Slide 19: Investing for the future
Our strengths: one of world’s largest energy resources, lowest cost, lowest upstream carbon intensity, focus on technology & sustainability, enabled by human capital Investing for the future Saudi Aramco FY 2020 Results | 19
Slide 20: Questions & Answers
Questions & Answers Saudi Aramco FY 2020 Results | 20 Saudi Aramco: Company General Use
Slide 21: Appendix
Appendix Saudi Aramco FY 2020 Results | 21 Saudi Aramco: Company General Use
Slide 22: Strategy
Strategy Maintain position as the world’s largest crude oil producer by 4 Expand global recognition of 1 brands production volume and one of the lowest cost producers, while providing reliable, low carbon intensity crude oil 5 supply to customers Efficiently allocate capital and maintain prudent and
Slide 23: FY 2020 Upstream milestones
FY 2020 Upstream milestones Maintained MSC at 12.0 mmbpd Added 2.5 bscfd to gas processing capacity with Fadhili Gas Plant reaching full capacity Al-Khafji operations resumed Marjan and Berri increments Uthmaniyah gas plant completed construction started Hawiyah Unayzah reservoir gas storage Phase 1
Slide 24: FY 2020 Downstream milestones
FY 2020 Downstream milestones Completed acquisition of a majority stake in SABIC • Transforms Aramco into a major global petrochemical player • Operations in more than 50 countries Key role supporting highest single day crude oil production Jazan Refinery Complex online in 2021 One of the primary ma
Slide 25: FY 2020 operational and financial highlights
FY 2020 operational and financial highlights Hydrocarbon production Free cash flow3 mmboed1 $Bn 12.4 FY 2019: 13.2 49.1 FY 2019: $78.3bn Crude production Capital expenditure mmbpd2 $Bn 9.2 FY 2019: 9.9 26.9 FY 2019: $32.8bn 4 Upstream cost per barrel $/boe 7.0 FY 2019: $7.5 1. mmboed= million barrel
Slide 26: Net income: 2020 versus 2019
Net income: 2020 versus 2019 $Bn, unless otherwise indicated 2019 2020 Key drivers Realized oil prices ($/bbl) 64.6 40.6 Hydrocarbon production (mmboed) 13.2 12.4 $24/bbl decrease in crude price Refining Industry Composite margin1 ($/bbl) 5.2 1.3 0.8 mmbd lower production Upstream EBIT 184.0 110.2 D
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