Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q1 2015 Earnings Presentation
23 slides from Orlen Spolka Akcyjna's earnings presentation, Apr 29, 2015
Slide 1: LOTOS Group 1Q 2015 consolidated financial results
LOTOS Group 1Q 2015 consolidated financial results 29 April 2015 Grupa LOTOS S.A.
Slide 2: Agenda
Agenda 1 Key highlights 3-4 2 External environment 5-8 3 Upstream 9 - 12 4 Downstream 13 - 17 5 Consolidated financial results 18 - 23 Grupa LOTOS S.A. 2
Slide 3: Key highlights
Key highlights Grupa LOTOS LOTOSS.A. S.A. 3
Slide 4: Key highlights – 1Q 2015
Key highlights – 1Q 2015 EBITDA : PLN 446m Clean(1) EBITDA LIFO : PLN 461m upstream: PLN 75m upstream : PLN 75m downstream: PLN 317m downstream(1) : PLN 333m Operating cash flow : 321m PLN (+27% y/y) Upstream average daily production : 12 689 boe/d(2) (+1% y/y) (1) Excluding : PLN 42.5m „reversal” o
Slide 5: External environment
External environment Grupa LOTOS LOTOSS.A. S.A. 5
Slide 6: External environment – oil prices & product cracks
External environment – oil prices & product cracks USD/bbl Avg Brent-Ural spread (left axis) Avg Brent price (right axis) USD/bbl 107 2.5 102 97 110 87 100 1.5 79 90 0.5 80 -0.5 -1.5 -1.3 -1.3 -2.0 -1.4 -2.0 70 -2.1 -1.7 -1.8 60 -1.5 58 50 -2.5 63 56 48 40 -3.5 30 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14
Slide 7: Model refining margin vs. peers
Model refining margin vs. peers (1) (1) (1) (2) USD/bbl LOTOS PKN OMV ERMI 10.00 9.38 9.00 9.20 8.00 7.32 6.97 7.00 6.00 5.48 6.60 6.50 6.41 5.05 4.97 4.9 5.00 5.19 4.00 4.70 2.70 4.07 3.00 3.74 2.10 1.92 2.00 1.63 1.37 1.00 1.48 1.16 0.90 0.00 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 (1) Sou
Slide 8: External environment – GDP growth & FX development
External environment – GDP growth & FX development (1) (4) Polish GDP growth mln m3 % Diesel consumption (Poland) 3.2 3.2 3.5 3.1 3.1 3.4 3.4 3.3 3.3 3.0 3.1 2.7 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015(2) 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 mln m3 (4) USD/PLN 1Q'15 (3) Gasoline c
Slide 9: Upstream
Upstream Grupa LOTOS LOTOSS.A. S.A. 9
Slide 10: Hydrocarbons reserves and production figures
Hydrocarbons reserves and production figures (1) Average daily oil&gas production (boe/d) 2P oil&gas reserves (m boe) 13 793 67.8 12 689 12 571 1 443 7.4 1 566 1 510 52.5 53.9 3 342 2 996 7.6 7.5 3 834 41.2 (3) 40.0 41.6 9 008 8 183 7 171 19.2 4.9(2) 4.8 1Q'14 4Q'14 1Q'15 Mar 14 Dec 14 Mar 14 Norway
Slide 11: Quarterly sales split by products and countries
Quarterly sales split by products and countries 1Q 2014 sales (ths boe) 4Q 2014 sales (ths boe) 1Q 2015 sales (ths boe) 670 637 641 74% 69% 74% 294 247 248 5% 9% 171 9% 155 95% 97 91% 31% 91% 26% 100% 100% 26% 100% Norway Poland Lithuania Norway Poland Lithuania Norway Poland Lithuania Oil Gas Oil G
Slide 12: Upstream quarterly clean EBITDA development
Upstream quarterly clean EBITDA development PLN m -52% y/y 157 118 75 Clean EBITDA 1Q'14 Clean EBITDA 4Q'14 Clean EBITDA 1Q'15 1Q 2014 4Q 2014 1Q 2015 99 118 104 63 157 75 58 14 165 12 EBITDA Depreciation EBIT EBITDA Depreciation EBIT -47 (1) EBITDA Impairments Clean Depreciation Clean EBIT EBITDA
Slide 13: Downstream
Downstream Grupa LOTOS LOTOSS.A. S.A. 13
Slide 14: Refinery production - volumes of key products
Refinery production - volumes of key products k tons Diesel Gasoline Jet Fuel k tons HSFO Bitumens 540 485 1400 490 1 146 1 147 1 115 1200 1 048 1 044 440 393 390 1000 425 299 340 290 800 290 600 390 240 188 323 340 367 358 190 162 400 118 140 200 90 46 46 126 169 204 188 153 40 0 1Q 2014 2Q 2014 3Q
Slide 15: Share of key products in the overall refinery throughput
Share of key products in the overall refinery throughput 51% 51% 49% 48% 47% 19% 17% 13% 15% 15% 14% 14% 13% 12% 11% 6% 7% 2% 2% 4% 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Diesel + Jet Gasoline HSFO Bitumens Grupa LOTOS S.A. 15
Slide 16: Retail performance and market share evolution
Retail performance and market share evolution Quarterly retail EBITDA (excl. asset impairments)(1) Quarterly retail sales volumes m PLN k tons +4% y/y 40 271 286 269 242 251 18 17 20 21 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Market share (volume) Petrol station network (no of un
Slide 17: Downstream segment quarterly clean EBITDA LIFO
Downstream segment quarterly clean EBITDA LIFO m PLN +139% y/y 333 246 139 Clean EBITDA LIFO 1Q'14 Clean EBITDA LIFO 4Q'14 Clean EBITDA LIFO 1Q'15 1Q 2014 4Q 2014 1Q 2015 1 56 32 139 131 33 246 43 44 82 15 EBITDA LIFO effect FX Clean LIFO differences EBITDA 317 333 -814 +863 (1) EBITDA LIFO effect L
Slide 18: Consolidated financial results
Consolidated financial results Grupa LOTOS LOTOSS.A. S.A. 18
Slide 19: 1Q 2015 results breakdown vs 1Q 2014
1Q 2015 results breakdown vs 1Q 2014 PLN m 178 1Q 2015 +15 +43 -43 461 268 283 (1) (2) Clean EBITDA EBIT LIFO effect FX differences One off items Clean EBIT LIFO Depreciation LIFO (1) 214 1Q 2014 289 +1 0 17 +56 75 (1) Operational foreign exchange rate differences included in the cost of sales Grupa
Slide 20: Quarterly clean EBITDA LIFO by segments
Quarterly clean EBITDA LIFO(1) by segments PLN m 54 1Q 2015 segment results 333 461 75 (2) Upstream Downstream Other Clean EBITDA LIFO +61 Changes to +193 -82 segment results(3) 461 289 1Q'14 Clean Upstream Downstream Other 1Q'15 Clean EBITDA LIFO EBITDA LIFO (1) All figures excluding one – off non
Slide 21: Quarterly operating cash flow
Quarterly operating cash flow PLN m 576 451 338 321 253 102 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 LOTOS proves a solid operating cash flow generation capability in turbulent times Grupa LOTOS S.A. 21
Slide 22: Indebtedness
Indebtedness (1) PLN m Net debt % Gearing ratio(2) 5 715 73% 5 319 62% 64% Dec 2014 (incl. SPO proceeds) Mar 2015 Dec 2013 Dec 2014 (incl. SPO proceeds) Mar 2015 Net debt figures include: interest bearing loans, Net debt/LTM clean EBITDA LIFO borrowings, leasing and bonds 5.2x The current gearin
Slide 23: Thank You
Thank You Investor Relations tel: +48 58 308 73 93 fax: +48 58 346 22 35 e-mail: ir@grupalotos.pl Grupa LOTOS S.A. 23