Repsol Sa · BME:REP
Repsol Sa — Q2 2021 Earnings Presentation
13 slides from Repsol Sa's earnings presentation, Jul 29, 2021
Slide 1: 2Q21 Repsol Conference Call Results
2Q21 REPSOL CONFERENCE Results CALL 29 July 2021 Josu Jon Imaz CEO 1
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2021 This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to tr
Slide 3: Agenda
Agenda 01. Key messages 02. Operational highlights 03. Financial results 04. Outlook 2021 3
Slide 4: Solid 2Q21 results back to pre-pandemic levels
Key messages Solid 2Q21 results back to pre-pandemic levels • Adjusted Net Income: +4% vs. 1Q21 and -2% vs. 2Q19 Improving results in all • Higher O&G prices, exceptional Chemicals and improving demand in Spain business divisions • CFFO: +124% 1H21 vs. 1H20 • Value-over-volume and portfolio rational
Slide 5: Stronger oil and gas prices. Highest refining margin indicator in last four quarters
Market environment Stronger oil and gas prices. Highest refining margin indicator in last four quarters Brent Henry Hub ($/bbl) ($/Mbtu) 69 2.7 2.8 2.7 61 2.0 42 44 1.7 29 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Refining Margin Indicator Exchange Rate ($/bbl) ($/€) 3.0 1.21 1.19 1.20 1.17
Slide 6: Operational highlights – Upstream: Value-over-volume and better prices compensate lower production
Operational highlights – Upstream Value-over-volume and better prices compensate lower production Production 2Q21 vs. 1Q21 Organic FCF (Kboe/d) (€B) 0.9 0.9 -48 -10 -19 638 561 1H21 SP annual average 21-25 Unit CFFO ($/boe) +0.7 1Q21 Maintenance Divestments Others 2Q21 FY2021 (E) & Downtimes • 2Q21
Slide 7: Operational highlights – Upstream: Focusing operations in most competitive and sustainable areas
Operational highlights – Upstream Focusing our operations in the most competitive and sustainable areas Rationalization of portfolio Progress on 14 key projects in SP Spain Russia Eagle Ford • Re-initiating drilling activity in 2H21 Disposal of producing assets Marcellus Cessation of oil following s
Slide 8: Operational highlights – Industrial: Inflection point in Refining. Record petrochemical margins
Operational highlights – Industrial Inflection point in Refining. Record-level petrochemical margins • Margin indicator: 1.5 $/bbl 2Q21 vs • Record international margins in 1H21 0.2 $/bbl in 1Q21 Refining Chemicals • Puertollano turnaround in 2Q21 • 2Q21 Utilization: Distillation 71%; Ongoing challe
Slide 9: Operational highlights – Commercial and Renewables
Operational highlights – Commercial and Renewables Mobility closer to pre-COVID level. Increased Low Carbon generation target to 2025 • Sales in Service Stations in Spain -15% vs. 2Q19 Sales in Spain service stations vs. 2019 levels Mobility (from -22% 1Q21 vs. 1Q19) 1Q21 2Q21 Increased • End of Sta
Slide 10: 2Q21 Results
Financial results 2Q21 Results Results (€ Million) Q2 2021 Q1 2021 Q2 2020 1H21 1H20 Upstream 351 327 (141) 678 (51) Industrial 166 73 8 239 296 Commercial and Renewables 127 101 42 228 163 Corporate and Others (156) (30) (167) (186) (219) Adjusted Net Income 488 471 (258) 959 189 Inventory effect 1
Slide 11: Outlook 2021: Improved outlook to the end of 2021
Outlook 2021 Improved outlook to the end of 2021 Production 590 - 600 Kboe/d • - 5% vs. previous guidance Refining Margin $2 /bbl Indicator • + €0.3 B vs. previous guidance EBITDA CCS ~ €6.1 B • ~ 50% higher than in 2020 • + €0.3 B (Low Carbon Platforms) vs. previous guidance Capex ~ €2.9 B • Expect
Slide 12: Conclusions: Strong strategic delivery in improving macroeconomic scenario
Conclusions Strong strategic delivery in improving macroeconomic scenario • Adj. Net Income of €488 M 2Q21 vs. €497 M 2Q19 2Q21 results at pre-pandemic • Short term focus on capital discipline and cost efficiency levels • Long term strategy driven by the Energy Transition Increased renewable • Low C
Slide 13: 2Q21 Results – Repsol Investor Relations
2Q21 Results 29 July 2021 Repsol Investor Relations investor.relations@repsol.com 13