Saudi Arabian Oil Co. · TADAWUL:2222
Saudi Arabian Oil — H1 2021 Earnings Presentation
16 slides from Saudi Arabian Oil's earnings presentation, Aug 9, 2021
Slide 1: H1 2021 Results
H1 2021 Results August 9, 2021
Slide 2: Cautionary notes
Cautionary notes IMPORTANT: The following applies to this presentation and associated slides by Saudi Arabian Oil Company (the “Company”) (collectively, the “Information”). The Information contains forward‐looking statements. All Information other than statements relating to historical or current fa
Slide 3: Presenters: President & CEO and CFO
AminPresident Nasser & CEO Ziad Al-Murshed CFO Saudi Aramco H1 2021 Results | 3 Saudi Aramco: Company General Use
Slide 4: COVID-19: Care for employees and business continuity
COVID-19: Care for employees and business continuity Workforce wellbeing is our top priority − Workplace practices evolving − >95% workforce vaccinated − >70% dependents vaccinated Business continuity − Safe & uninterrupted operations − Reliability of energy supplies Saudi Aramco H1 2021 Results | 4
Slide 5: Continued market recovery
Continued market recovery Brent Global demand1 ($/bbl) (mmbpd)2 80 110 60 100 40 90 20 0 80 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Actual Forecast Brent price Historic oil demand1 Forecast oil demand1 1. Source: IEA, IHS Markit, EIA 2. mmbpd =
Slide 6: H1 2021: delivering on our strategic objectives
H1 2021: delivering on our strategic objectives Completed ‘Ain Dar & Fazran Started up Jazan refinery SABIC integration progress crude oil increments − Synergies ahead of plan − Optimized the go-to-market strategy for all products Portfolio optimization to $ Optimizing capital structure Developing f
Slide 7: SABIC integration
SABIC integration SABIC stake accelerates Aramco’s downstream strategy and leverages petrochemicals growth opportunities Expect to generate $3bn-$4bn of synergies by 2025 − 2021 synergies progressing ahead of plan − Majority of efficiencies from: • Procurement • Sales & marketing • Supply chain • St
Slide 8: H1 2021 operational and financial performance
H1 2021 operational and financial performance Hydrocarbon production Net income Capital expenditure 1 mmboed $Bn $Bn 11.6 47.2 15.7 H1 2020: 12.7 H1 2020: 23.2 H1 2020: 13.6 Crude oil production Free cash flow3 Dividends paid 2 mmbpd $Bn $Bn 8.6 40.9 37.5 H1 2020: 9.5 H1 2020: 21.1 H1 2020: 32.1 1.
Slide 9: Net income: H1 2021 versus H1 2020
Net income: H1 2021 versus H1 2020 $Bn, unless otherwise indicated H1 2020 H1 2021 ∆ Key drivers Realized oil prices ($/bbl) 37.4 64.1 26.7 Hydrocarbon production (mmboed) 12.7 11.6 (1.1) $26.7 / bbl increase in crude oil price Refining Industry Composite margin1 ($/bbl) 1.7 3.1 1.4 1.1 mmboed lower
Slide 10: Cash position and gearing continues to improve
Cash position and gearing continues to improve ($Bn) + 12.3 56.5 37.5 15.7 9.0 67.6 55.3 Cash balance 1 Operating 2 Dividends 3 Capex 4 2 Net proceeds 5 Cash balance 6 end 2020 cashflow1 paid & borrowings3 end H1 2021 1. Operating cashflow refers to the net cash provided by operating activities item
Slide 11: Investing for the future
Investing for the future 50 Capex1 45 ($Bn) Positive economic outlook 40 Approximately 35 Underinvestment by industry 35 33 30 Flexible capital program 27 25 − Responsive to market conditions 20 − Unique ability to flex-up capex, with incremental supply from high-quality, 15 low-carbon intensity res
Slide 12: Accelerating growth: Shareek
Accelerating growth: Shareek Unique and significant opportunity to boost growth in line with Aramco’s strategy − Attractive incentives for domestic investments − Aligned with shareholder-value maximization Facilitates partnership with domestic businesses − Potential to further expand domestic suppli
Slide 13: Sustainable growth
Sustainable growth Liquids Downstream Potential for continued volume growth, Improving performance including expansion of MSC to 13mmbpd1 − SABIC integration Advantaged low-cost, low-carbon resource base − Asset transformation − Expanding global trading Gas Continuing to de-risk Upstream Meet growin
Slide 14: Intensifying focus on affordable low-carbon energy
Intensifying focus on affordable low-carbon energy Maintaining low-carbon intensity leadership − 2020 upstream carbon intensity of 10.6 kg CO2/boe1 versus OGCI2 2025 target of 20 kg CO2/boe Decarbonized energy − Focus on potential rapid growth in hydrogen demand − Taking advantage of high-quality, p
Slide 15: Strong track record: positioned for future growth
Strong track record: positioned for future growth Strategy on track; growing long-term shareholder value Positive momentum in earnings and free cash flow Portfolio optimization plans progressing Further diversifying funding sources and expanding the investor base Declared $37.5bn H1 2021 dividend Sa
Slide 16: Questions & Answers
Questions & Answers Saudi Aramco H1 2021 Results | 16
Saudi Arabian Oil Company — H1 2021 Earnings Presentation on 6ix