Orlen Spolka Akcyjna · GPW:PKN

Orlen Spolka Akcyjna — Polskie Górnictwo Naftowe i Gazownictwo — Q2 2017 Earnings Presentation

21 slides from Orlen Spolka Akcyjna's earnings presentation, Aug 18, 2017

  1. Slide 1: PGNiG Group H1 and Q2 2017

    Polskie Górnictwo Naftowe i Gazownictwo SA PGNiG Group H1 and Q2 2017 August 18th 2017

  2. Slide 2: Table of contents

    Table of contents 1. Performance drivers 2. Financial highlights Q2 2017 3. Segment overview: Exploration and Production Trade and Storage Distribution Generation 4. Appendices 2

  3. Slide 3: Performance drivers

    Performance drivers USD stable against PLN y/y, 9-month average crude oil price up 17% Revenue up on high sales EUR depreciating against PLN y/y y/y in Q2 2017 PLN USD/bbl volumes, with unit cost of gas 4,5 120 -3.4% rising 4.37 100 4.22 4,0 -1% 80 3.87 3.83 60 3,5 +9% 50.1 46.0 40 42.7 +17% 50.0 3,

  4. Slide 4: Financial highlights Q2 2017

    Financial highlights Q2 2017 Group's EBITDA by segment in Q2 2017 vs Q2 2016 [PLNm] Q2 2016 Q2 2017 % PLNm Revenue 6,369 7,165 12% 863 Operating expenses (excl. D&A) (5,631) (5,757) 2% 665 692 EBITDA 738 1,408 91% EBITDA (net of impairment losses on 1,463 1352 (8%) 170 property, plant and equipment

  5. Slide 5: Segments – Exploration and Production

    Segments – Exploration and Production [PLNm] Q2 2016 Q2 2017 % Revenue growth driven by oil and gas prices Revenue 1,232 1,294 5% Operating expenses (excl. D&A) (1,215) (431) (65%) EBITDA 17 863 50x EBITDA (net of impairment losses on property, plant 726 785 8% Comments: and equipment) Revenue from

  6. Slide 6: Segments – Trade and Storage

    Segments – Trade and Storage [PLNm] Q2 2016 Q2 2017 % Revenue growth driven by higher volumes and a slight Revenue 5,262 5,887 12% increase in market prices Operating expenses (excl. D&A) (5,254) (6,155) 17% Comments: EBITDA 8 (268) (35x) Gas sales up PLN 675m (to PLN 5.4bn in Q2 2017) on higher se

  7. Slide 7: Segments – Distribution

    Segments – Distribution [PLNm] Q2 2016 Q2 2017 % Segment performance buoyed by higher gas Revenue 1,065 1,142 7% distribution volumes Operating expenses (excl. D&A) (400) (450) 13% Comments: EBITDA 665 692 4% Volume of distributed gas up by more than 19% y/y, to 2.4 bcm (new connections and Depreci

  8. Slide 8: Segments – Generation

    Segments – Generation [PLNm] Q2 2016 Q2 2017 % Segment's performance supported by acquisitions and Revenue 381 408 7% increased heat sales volumes Operating expenses (excl. D&A) (294) (238) (19%) Comments: EBITDA 88 170 93% Revenue from sales of heat up by 21% y/y, to PLN 231m, on a 26% increase in

  9. Slide 9: Contact details

    Contact details Marcin Piechota More information Head of the Investor Relations Division Phone: +48 22 589 43 22 Mobile: +48 885 889 890 Fax: +48 22 691 81 23 Email: marcin.piechota@pgnig.pl Piotr Gałek Investor Relations Specialist Phone: +48 22 589 48 46 Mobile:+48 723 235 652 Fax: +48 22 691 81 2

  10. Slide 10: Appendices

    Appendices: 1. Financial highlights H1 2017 2. Sales and gas imports structure 3. Operating expense 4. Debt and sources of funding 5. Statement of financial position, statement of cash flows, financial ratios and headcount 6. Production and sales volumes 10

  11. Slide 11: Financial highlights H1 2017

    Financial highlights H1 2017 Group's EBITDA by segment in H1 2017 vs H1 2016 [PLNm] H1 2016 H1 2017 % PLNm Revenue 17,349 18,817 8% 2,239 Operating expenses (excl. D&A) (14,218) (14,640) 3% 1,423 1,383 EBITDA 3,131 4,177 33% 896 EBITDA (net of impairment losses on 3,807 4,101 8% 431 450 580 propert

  12. Slide 12: Sales and gas imports structure

    Sales and gas imports structure Poland's gas imports structure in Q2 2017 vs Q2 2016 Significant share of LNG in Q2 2017 gas imports in Q2 2017 LNG 14% Sources west and 7% PGNiG Group's sales of gas to south of Poland 10% industrial customers (retail and Sources east of Q2 2016 Poland wholesale) and

  13. Slide 13: Operating expenses in Q2 2017 vs Q2 2016

    Operating expenses in Q2 2017 vs Q2 2016 [PLNm] Q2 2016 Q2 2017 % Higher cost of gas, including regasification costs, offset by Fuels for heat and power generation (105) (119) 13% lack of adverse one-off events Other raw materials and consumables used (389) (415) 7% that occurred in Q2 2016 Employe

  14. Slide 14: Debt and sources of funding

    Debt and sources of funding Comments: Sources of funding (as at June 30th 2017) PLNm Redemption of 5-year domestic bonds with a nominal value of PLN 2.5bn plus interest on available used June 19th − financed with own funds. 8,500 Dividend per share PLN 670 0,30 1,000 820 280 140 0.19 0.20 0.20 Under

  15. Slide 15: Statement of financial position, cash flows, financial ratios and headcount

    Statement of financial position, statement of cash flows, financial ratios and headcount Group's statement of financial position (as at Headcount (as at) June 30th 2017) '000 PLNm Non-current Current Equity 40 Other Generation Distribution Trade and Storage Exploration and Production 32.0 31.0 29.0

  16. Slide 16: Production and sales volumes

    Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group (mcm) H1 2017 Q2 2017 Q1 2017 FY 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 FY 2015 Q4 2015 Q3 2015 Q2 2015 Q1 2015 HIGH-METHANE GAS (E) 944 469 474 1,918 473 450 487 509 2,027 504 515 507 501 including in Poland 656 327 328 1,401 347 346 34

  17. Slide 17: Changes in segment presentation

    Changes in segment presentation 17

  18. Slide 18: Change of reporting segments (1/4)

    Change of reporting segments (1/4) Exploration and Production Trade and Storage Distribution Generation Other Segments no change no change New settlement price for gas produced domestically Corporate Centre Exploration and Production Trade and Storage Distribution Generation Other Segments 18

  19. Slide 19: Change of reporting segments (2/4)

    Change of reporting segments (2/4) Settlement price 1 calculation method 2 Establishment of a separate Corporate Centre 3 Operating expenses – other items Transfer of gas from the The PGNiG Management Board Reclassifications were made Exploration and Production resolved to adjust the financial betwe

  20. Slide 20: Impact of the changes [2016 EBITDA in PLNm] (3/4)

    Impact of the changes [2016 EBITDA in PLNm] (3/4) Previous reporting method Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Exploration and Production 619 (123) 494 295 - - Trade and Storage 660 110 (8) 648 - - Distribution 758 665 542 594 - - Generation 362 87 110 199 - - Other (10) (5) (6) (40) -

  21. Slide 21: Impact of the changes [2016 EBITDA in PLNm] (4/4)

    Impact of the changes [2016 EBITDA in PLNm] (4/4)* 1000 800 879 758 758 Q1 1000 800 Q2 660 665 665 619 600 600 423 400 362 362 400 200 200 110 87 87 17 8 0 0 -10 -33 -123 -4 -42 -200 -200 E&P T&S Distribution Generation Other E&P T&S Distribution Generation Other 1000 800 Q3 1000 800 Q4 653 657 648

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