Slide 1: OMV Q4 and full-year 2017 conference call
OMV Q4 and full-year 2017 conference call February 21, 2018 Rainer Seele Chairman of the Executive Board and CEO The spoken word applies.
Slide 2: OMV Q4 and full-year 2017 conference call Page 2 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 2 of 35 | OMV Group
Slide 3: Macro environment – higher oil price, lower refining margins
OMV Q4 and full-year 2017 conference call February 21, 2018 Rainer Seele Ladies and gentlemen, good morning and thank you for joining us today. Looking back, 2017 has been an outstanding year for OMV. We were able to deliver a very strong operational performance throughout the year, and this is clea
Slide 4: OMV Q4 and full-year 2017 conference call Page 4 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 4 of 35 | OMV Group
Slide 5: Successful transformation – earnings doubled
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 4: Successful transformation – earnings doubled Let’s talk about the financial highlights of 2017. It was a year of transformation and we have seen a strong delivery from both business segments. Clearly, I can say that we continued to
Slide 6: OMV Q4 and full-year 2017 conference call Page 6 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 6 of 35 | OMV Group
Slide 7: Strong free cash flow after dividends; further reduction in oil price break-even
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 5: Strong free cash flow after dividends; further reduction in oil price break-even Very impressive is the development of OMV’s free cash flow. Since two years, we had a strong focus on cost and profitability. Together with our active
Slide 8: OMV Q4 and full-year 2017 conference call Page 8 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 8 of 35 | OMV Group
Slide 9: Key messages
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 6: Key messages Before I explain the details of our business performance, let me briefly point out the highlights of the last quarter of 2017. Our hydrocarbon production stepped up to 377 thousand barrels per day, which is the highest
Slide 10: OMV Q4 and full-year 2017 conference call Page 10 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 10 of 35 | OMV Group
Slide 11: Solid Group clean CCS Operating Result
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 7: Solid Group clean CCS Operating Result Let’s now turn to our financial performance in the fourth quarter of 2017. Our clean CCS Operating Result increased by 67 percent to 688 million Euros compared to the same quarter in the previ
Slide 12: OMV Q4 and full-year 2017 conference call Page 12 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 12 of 35 | OMV Group
Slide 13: Significant increase in Group Operating Result
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 8: Significant increase in Group Operating Result OMV’s Group reported Operating Result in Q4 2017 came in at 631 million Euros, significantly above the previous year’s quarter. Net special items were minus 115 million Euros, compared
Slide 14: OMV Q4 and full-year 2017 conference call Page 14 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 14 of 35 | OMV Group
Slide 15: Upstream: Favorable market environment and volume growth
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 9: Upstream: Favorable market environment and volume growth Let me now come to the performance of our two business segments. In Upstream, the clean Operating Result substantially increased from 91 million Euros to 344 million Euros. T
Slide 16: OMV Q4 and full-year 2017 conference call Page 16 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 16 of 35 | OMV Group
Slide 17: Yuzhno Russkoye (Russia) in OMV's portfolio
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 10: Yuzhno Russkoye (Russia) in OMV’s portfolio As Q4 is the first quarter to include Yuzhno Russkoye, let me briefly give you some more details about the organizational structure and the financial impact of our stake in Yuzhno Russko
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OMV Q4 and full-year 2017 conference call February 21, 2018 Page 18 of 35 | OMV Group
Slide 19: Downstream: Earnings almost at previous year's level
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 11: Downstream: Earnings almost at previous year’s level despite the divestment of OMV Petrol Ofisi The Downstream business continued to be a key contributor to OMV Group earnings and cash flow. With 356 million Euros, the Clean CCS O
Slide 20: OMV Q4 and full-year 2017 conference call Page 20 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 20 of 35 | OMV Group
Slide 21: Continued strict cost discipline
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 12: Continued strict cost discipline The good performance of our business segments was also a result of our ongoing strict cost discipline. At 8.8 Dollars per barrel in the fourth quarter of 2017, production cost declined 15 percent c
Slide 22: OMV Q4 and full-year 2017 conference call Page 22 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 22 of 35 | OMV Group
Slide 23: Free cash flow after dividends of 1 billion Euros
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 13: Free cash flow after dividends of 1 billion Euros Let’s now come to cash flow. In the fourth quarter of 2017, cash flow from operating activities amounted to 742 million Euros. Cash flow for investments showed an outflow of 579 mi
Slide 24: OMV Q4 and full-year 2017 conference call Page 24 of 35 | OMV Group
OMV Q4 and full-year 2017 conference call February 21, 2018 Page 24 of 35 | OMV Group
Slide 25: Significant deleveraging and strong cash position
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 14: Significant deleveraging and strong cash position As of year-end 2017, OMV’s net debt increased from end of September, 2017 by 1.6 billion to 2 billion Euros due to the acquisition of Yuzhno Russkoye. Despite the acquisition, we w
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OMV Q4 and full-year 2017 conference call February 21, 2018 Page 26 of 35 | OMV Group
Slide 27: Record dividend proposed
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 15: Record dividend proposed Ladies and gentlemen, OMV is committed to delivering an attractive and predictable shareholder return throughout the business cycle. According to our progressive dividend policy that we announced last year
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OMV Q4 and full-year 2017 conference call February 21, 2018 Page 28 of 35 | OMV Group
Slide 29: Outlook 2018
OMV Q4 and full-year 2017 conference call February 21, 2018 Slide 16: Outlook 2018 Let me conclude with the outlook for 2018. At the beginning of this year, we saw an oil price reaching the 70 US Dollar per barrel mark for the first time in more than two years. For the full year 2018 we are forecast
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OMV Q4 and full-year 2017 conference call February 21, 2018 Page 30 of 35 | OMV Group
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OMV Q4 and full-year 2017 conference call February 21, 2018 Page 32 of 35 | OMV Group
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OMV Q4 and full-year 2017 conference call February 21, 2018 Page 33 of 35 | OMV Group
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OMV Q4 and full-year 2017 conference call February 21, 2018 Page 35 of 35 | OMV Group