Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Q4 2023 Earnings Presentation
30 slides from Omv's earnings presentation, Feb 1, 2024
Slide 1: OMV Q4 2023 Results Conference Call
OMV Q4 2023 Results Conference Call February 1, 2024 OMV Aktiengesellschaft r o u o r O ru r 1 0 1 | 0 3 o r ru r 1 0 OMV Group Alfred Stern Chairman of the Executive Board and CEO The spoken word applies 1/30 | OMV Group
Slide 2: pr o o
OMV Q4 2023 Results Conference Call, February 1, 2024 pr o o or r oo or r oo u o r u ou oo p p p r o o r r or r o or oo r r o u p o urr or o urr o OMV r ur or r oo r u or u r o o u o u r o p o r u or o ur u ur r ou o ro o OMV o u u r u r r ro o pr or p or r oo r or r p o pr o r u o o op u u r o or r
Slide 3: Strategy 2030 implementation
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 3: Strategy 2030 implementation Ladies and gentlemen, good morning and thank you for joining us. or I u our u r r p r or ’ r oo our u year results and key achievements of 2023. Last year was another challenging year characterized by various
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Slide 5: Strategy 2030 implementation (continued)
OMV Q4 2023 Results Conference Call, February 1, 2024 Last but not least, in Energy, we took ID or pu D p o o U’ r projects, and since then we have secured more than 80 percent of the execution agreements required to deliver the project. Moreover, we made considerable progress on building a low carb
Slide 6: OMV Q4 2023 Results Conference Call
OMV Q4 2023 Results Conference Call, February 1, 2024 6/30 | OMV Group
Slide 7: Macro environment – Rangebound oil prices, normalization of gas prices
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 4: Macro environment – Rangebound oil prices, normalization of gas prices, healthy refining margins, and weak chemical market environment Let me move on to the fourth quarter results. Brent crude oil prices were slightly lower compared to t
Slide 8: Macro environment (slide)
OMV Q4 2023 Results Conference Call, February 1, 2024 8/30 | OMV Group
Slide 9: Clean CCS Earnings – Good performance
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 5: Clean CCS Earnings – Good performance: improvement compared with the previous quarter, but decrease versus extraordinary prior-year quarter L ’ now turn to the financial performance in the fourth quarter of 2023. Compared to the third qu
Slide 10: Clean CCS Earnings (slide)
OMV Q4 2023 Results Conference Call, February 1, 2024 10/30 | OMV Group
Slide 11: Chemicals & Materials – Divestment of loss-making Nitro business
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 6: Chemicals & Materials – Divestment of loss-making Nitro business and marginally positive inventory effects were more than offset by weaker margins Let me now come to the performance of our business segments. Compared to the fourth quarte
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Slide 13: Borealis value enhancement program and JV contribution
OMV Q4 2023 Results Conference Call, February 1, 2024 Our value enhancement program initiated at Borealis at the beginning of the year supported the results by around 140 million euros in 2023. The result is coming from different areas such as cost efficiencies, commercial excellence, asset reliabil
Slide 14: Chemicals & Materials (slide)
OMV Q4 2023 Results Conference Call, February 1, 2024 1 /30 | OMV Group
Slide 15: Chemicals & Materials – Specialty polyolefin margins resilient
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 7: Chemicals & Materials – Specialty polyolefin margins and volumes in Europe have proven very resilient While the standard polyolefins business showed a similar development as the market indicator margins, you can see that that our special
Slide 16: Specialty polyolefin margins (slide)
OMV Q4 2023 Results Conference Call, February 1, 2024 16/30 | OMV Group
Slide 17: Fuels & Feedstock – Significantly lower refining indicator margins
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 8: Fuels & Feedstock – Significantly lower refining indicator margins, partially offset by stronger retail and commercial results The clean CCS Operating Result decreased by 46 percent to 368 million euros, driven by lower refining indicato
Slide 18: Fuels & Feedstock (slide)
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Slide 19: Energy – Earnings declined, primarily due to lower gas prices
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 9: Energy – Earnings declined, primarily due to lower gas prices, partially offset by an improved Gas Marketing & Power result The clean Operating Result of the Energy segment decreased by 23 percent to just above 1 billion euros from the e
Slide 20: Energy (slide)
OMV Q4 2023 Results Conference Call, February 1, 2024 0/30 | OMV Group
Slide 21: Cash flow – Organic free cash flow before dividends
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 10: Cash flow – Organic free cash flow before dividends at EUR 2.3 bn in 2023 Turning to cash flow, the cash flow from operating activities – excluding net working capital effects – for the full year 2023 amounted to 4.6 billion euros, one
Slide 22: Cash flow (slide)
OMV Q4 2023 Results Conference Call, February 1, 2024 /30 | OMV Group
Slide 23: Strong balance sheet – Very low leverage ratio and high cash position
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 11: Strong balance sheet – Very low leverage ratio and high cash position Our balance sheet remained very strong in 2023. Net debt at the end of December amounted to 2.1 billion euros and our leverage ratio stayed low at 8 percent. At the e
Slide 24: Balance sheet (slide)
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Slide 25: Shareholder rewards – Consistent increase of regular dividend
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 12: Shareholder rewards – Consistent increase of regular dividend over the last 9 years and a significant special dividend Ladies and gentlemen, as mentioned before, we will propose to the Annual General Meeting a regular dividend of 2 euro
Slide 26: Shareholder rewards (slide)
OMV Q4 2023 Results Conference Call, February 1, 2024 6/30 | OMV Group
Slide 27: Investments – Disciplined organic growth investments in 2024
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 13: Investments – Disciplined organic growth investments in 2024 I will now move on to the outlook and start with capital spending. For the year 2024, we are expecting organic CAPEX of around 3.8 billion euros, which includes around 200 mil
Slide 28: Investments (slide)
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Slide 29: Outlook 2024
OMV Q4 2023 Results Conference Call, February 1, 2024 Slide 14: Outlook 2024 Let me conclude with our outlook for key market assumptions and operations for 2024. We forecast an average Brent price of around 80 dollars per barrel. European natural gas storage levels are expected to remain high throug
Slide 30: Bay3 polyethylene plant and 2024 outlook details
OMV Q4 2023 Results Conference Call, February 1, 2024 We expect the Bay3 polyethylene plant in the US to reach commercial production in the first quarter of 2024 and contribute fully to the results thereafter. The cracker in Port Arthur was affected by the freezing weather in Texas and has been shut
OMV Aktiengesellschaft — Q4 2023 Earnings Presentation on 6ix