Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Shareholder Meeting (April 2017)
15 slides from Omv Petrom Sa's shareholder meeting presentation, Apr 25, 2017
Slide 1: OMV Petrom Group 2016 Overview and 2017 Outlook
OMV Petrom Group 2016 Overview and 2017 Outlook General Meeting of Shareholders April 25, 2017 Mariana Gheorghe, CEO
Slide 2: Operational highlights 2016, Outlook 2017, Strategy Update 2021+
1 Operational highlights 2016 2 Outlook 2017 3 Strategy Update 2021+ 2 | General Meeting of Shareholders, April 25, 2017
Slide 3: Romanian macroeconomic and fiscal environment
Business Diagram Slide Romanian macroeconomic and for fiscal PowerPoint environment Macroeconomic Fiscal framework environment 2016 GDP growth1: 4.8% yoy Supplementary taxation5 extended until end-2017 CPI annual inflation: -0.5% end-Dec;12-month average: Tax on constructions -1.5% eliminated starti
Slide 4: Key messages 2016
Key messages 2016 Free cash flow at RON 1.6 bn, due to investment prioritization and strict cost discipline Clean CCS EBIT at RON 1.7 bn; higher Downstream contribution OMV Petrom’s Free Float increased to 15.8%; GDRs traded on the London Stock Exchange since October 2016 Dividend proposal: RON 0.01
Slide 5: Strong execution of efficiency plans
Strong execution of efficiency plans Upstream CAPEX Operating cost FCF1 OPEX in USD/boe RON bn savings RON bn RON mn +1.2 -10% -34% -500 13.16 3.9 1.6 11.85 2.6 0.3 2015 2016 2015 2016 2015 2016 2015 2016 Corporate Downstream Oil Downstream Gas Upstream 1 Free Cash Flow before repayment of loans and
Slide 6: Focused on safeguarding our employees and the environment
Focused on safeguarding our employees and the environment Improved LTIR1 in 2016 vs. 2012 Significant reduction of GHG3 and Water Intensity Offshore operations: more than 2 years GHG and Water Intensity Indices reduced without LTI2 by ~6% in 20164 vs. 2015 Downstream Oil LTIR: 0.09 Downstream Oil ac
Slide 7: Upstream – Improved efficiency
Upstream – Improved efficiency Production decline below upper limit guidance Key drivers 2016 vs. 2015 Hydrocarbon production (kboe/d) Highlights -3% 180 179 174 OPEX, in USD/boe terms, -10%, as efficiency plans delivered lower services, personnel and 85 83 80 materials costs 96 95 95 Total Upstream
Slide 8: Downstream – Mixed operational performance
Downstream – Mixed operational performance Refinery utilization rate (%) Refined product sales Extracting record performance levels off key assets volumes (mn t) Key drivers 2016 vs. 2015 1pp -2% 89% 88% 89% 4.81 5.03 4.93 Growth in retail sales of +4%1 Highlights Higher net electrical output despit
Slide 9: Operational highlights 2016, Outlook 2017, Strategy Update 2021+
1 Operational highlights 2016 2 Outlook 2017 3 Strategy Update 2021+ 9 | General Meeting of Shareholders, April 25, 2017
Slide 10: Outlook 2017
Business Diagram Slide for PowerPoint Outlook 2017 Assumptions Targets Brent at USD 55/bbl Production decline up to 3% yoy Refining margins to decline CAPEX budget increased to EUR Fuel demand on an upward 0.8 bn (~85% in Upstream) trend Positive FCF after dividends Gas demand broadly flat; high Str
Slide 11: Operational highlights 2016, Outlook 2017, Strategy Update 2021+
1 Operational highlights 2016 2 Outlook 2017 3 Strategy Update 2021+ 11 | General Meeting of Shareholders, April 25, 2017
Slide 12: OMV Petrom Strategy Update 2021+
OMV Petrom Strategy Update 2021+ Sustainable access to Leading integrated regional player energy for everyday modern Committed to enhance Regional growth leveraging life customer experience Romanian expertise Ensure profitability while maintaining a strong balance sheet and offering attractive share
Slide 13: 2021 Clear targets sustained by high investments
2021 Clear targets sustained by high investments EUR ~5 bn cumulative Capex Maximize value of current mature field portfolio anticipated over 2017 - 2021 Upstream Secure improved recovery from contingent resources 100% Deliver further growth in Romania 80% Drive regional expansion 60% Continue opera
Slide 14: Dividend considerations
Dividend considerations Commitment to deliver a competitive shareholder return by paying an attractive dividend Considerations 2016 DPS2 proposal: RON 0.015 EUR mn 347 Earnings Stress tested forecasts under various pricing points and FX assumptions Oil & Gas prices 189 Upcoming CAPEX CAPEX FCF1 gene
Slide 15: Our path to long-term success
Our path to long-term success Deliver Defined Solid Foundation Vision Clear Strategy Sustainable Execution Plan Value Creation Sustainability of reserves base Integrated Operational Provider of Enhance business model efficiency Attractive sustainable competitiveness delivers value Value chain shareh