Slide 1: Repsol Conference Call: Second Quarter 2020 Results
REPSOL CONFERENCE CALL Second Quarter 2020 Results Josu Jon Imaz, CEO 23 July 2020
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2020 This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to tr
Slide 3: Index
Index 01. Key messages and market environment 02. Operational highlights 03. Financial results 04. Resilience plan 2020 delivery and outlook Repsol 2Q20 Results 3
Slide 4: Delivering on 2020 objectives in challenging scenario
Key messages Delivering on 2020 objectives in challenging scenario 2Q20 fully impacted by • Health, safety and continuity of operations as main priority COVID-19 crisis • Lower commodity prices and depressed demand Positive CFFO in complex • Negative Adjusted Net Income in 2Q20 (- €258 M) macro envi
Slide 5: Brent stabilizes above 40 $/bbl after bottoming below 20 $/bbl in April
Market environment Brent stabilizes above 40 $/bbl after bottoming below 20 $/bbl in April Brent Henry Hub ($/bbl) ($/Mbtu) 68.9 2.6 2.5 62.0 63.1 2.2 2.0 50.1 1.7 29.6 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Refining Margin Indicator Exchange Rate ($/bbl) ($/€) 5.5 5.6 4.7 1.12 3.5 3.0 1.
Slide 6: Upstream: immediate response to the COVID-19 crisis through instant capex flexibility and opex efficiencies
Operational highlights Upstream: immediate response to the COVID-19 crisis through instant capex flexibility and opex efficiencies Upstream production Instant capex flexibility (M€ accrued investments) (kboed) 562 -62% -46 -41 38 -5 214 2Q19 2Q20 694 640 Unit opex reduction ($/boe net opex) 9.0 -12%
Slide 7: Exploratory success and portfolio management
Operational highlights Exploratory success and portfolio management Exploration activity in 1H20 focused in core regions Alaska • Mitquq and Stirrup • 8 wells completed positive results Bulgaria • 6 positive • Transferred one exploratory block • 1 negative in the Black Sea • 1 under evaluation Gulf
Slide 8: Industrial businesses impacted by COVID-19
Operational highlights Industrial businesses impacted by COVID-19 • All refineries remained operational • Higher international margins Refining during the crisis offset by lower prices and Premium in the CCS unit Chemicals • 3.0 $/bbl Refining margin narrow naphtha-propane margin despite adverse ind
Slide 9: Repsol will undertake two major pioneering decarbonization projects
Operational highlights Repsol will undertake two major pioneering decarbonization projects One of the world’s largest plants to manufacture net zero Plant for generation of gas from urban waste emissions fuels • Replacing part of Petronor’s production process • Benefiting from Spain’s renewable reso
Slide 10: Commercial and Renewables: Mobility getting back to normal, while progress in Low Carbon continues
Operational highlights Commercial and Renewables: Mobility getting back to normal, while progress in Low Carbon continues • Service Stations: 48% sales Lubricants, Mobility decrease 2Q20 vs. 2Q19 • Higher margins foster robust Asphalts and performance in both • Gasoline and diesel demand Specialties
Slide 11: Entry in Chile's renewable market
Operational highlights Entry in Chile's renewable market Diversified portfolio (52% wind and 48% solar) of up to 2.6 GW Initiating international • 78 MW in operation expansion in renewables • 1.6 GW of projects under construction JV (110 MW) or in advanced development • Joint Venture with Ibereólica
Slide 12: 2Q20 Results
Financial results 2Q20 Results Results (€ Million) Q2 2020 Q1 2020 Q2 2019 1H 2020 1H 2019 Upstream -141 90 323 -51 646 Industrial 8 288 177 296 448 Commercial and Renewables 42 121 128 163 265 Corporate and Others -167 -52 -131 -219 -244 Adjusted Net Income -258 447 497 189 1,115 Net Income -1,997
Slide 13: 2Q20 Results
Financial results 2Q20 Results Financial Data (€ Million) Q2 2020 Q1 2020 Q2 2019 1H 2020 1H 2019 EBITDA 240 349 1,902 589 3,712 EBITDA CCS 641 1,455 1,819 2,096 3,622 Operating Cash Flow 268 596 1,369 864 2,530 Net Debt 3,987 4,478 3,662 • EBITDA at CCS 1H20: €2.1 Bn, even in unprecedented macro sc
Slide 14: Resilience Plan delivering above original targets
Resilience Plan 2020 delivery Resilience Plan delivering above original targets Original target 1H20 captured New 2020 estimate Opex savings €350 M > €250 M €450 M Self-financed Resilience Plan 2020 expected to exceed the €2.2 Bn of Capex savings €1,000 M > €550 M €1,100 M initially targeted cash sa
Slide 15: Net debt will not increase in 2020 vs. 2019 at 40$/bbl Brent
Outlook Net debt will not increase in 2020 vs. 2019 at 40$/bbl Brent Production 650 kboed • Libya producing from 4Q20 Refining Margin Indicator 3.8 $/bbl • Uncertain demand recovery • In line with 2019 without the positive effect Net debt ≤ €4.2 Bn of hybrid issuances -3% Carbon Energy • vs. 2016 ba
Slide 16: Sustainable multi-energy project with reaffirmed decarbonization strategy
Conclusions Sustainable multi-energy project with reaffirmed decarbonization strategy • Prioritizing health, safety and continuity of operations Withstanding crisis supported • Flexible portfolio and solid financial situation on Repsol’s strengths • Unique track record in previous downturns • Indust
Slide 17: Repsol Conference Call: Second Quarter 2020 Results
REPSOL CONFERENCE CALL Second Quarter 2020 Results Repsol Investor Relations investorsrelations@repsol.com