Omv Ag · VIE:OMV

Omv — OMV Aktiengesellschaft — Q3 2015 Earnings Presentation

24 slides from Omv's earnings presentation, Nov 5, 2015

  1. Slide 1: Results January-September and Q3 2015

    Results January-September and Q3 2015 November 5, 2015 OMV Aktiengesellschaft

  2. Slide 2: CEO update

    CEO update Rainer Seele, Chairman of the Executive Board and CEO OMV Aktiengesellschaft

  3. Slide 3: HSSE: Safety is our priority

    HSSE: Safety is our priority Strong safety improvement record LTIR 1 OMV Group 0.7 0.7 0.5 0.4 0.3 2011 2012 2013 2014 9m/15 1 Lost-Time Injury Rate: Number of lost time injuries per 1 mn hours worked 3 | OMV Group, Results January-September and Q3 2015

  4. Slide 4: Integrated business and diversified portfolio provide natural hedge in current environment

    Integrated business and diversified portfolio provide natural hedge in current environment 120 Oil price 100 Dated Brent, 80 USD/bbl 60 40 20 0 30 Gas price 25 CEGH, 20 EUR/MWh 15 10 5 0 10 Refining margin 8 OMV indicator refining margin, 6 USD/bbl 4 2 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/

  5. Slide 5: Financial performance

    Financial performance Clean CCS EBIT Clean CCS Earnings Per Share Free cash flow before dividends in EUR mn in EUR in EUR mn 656 1.11 1.13 495 455 52 0.86 600 600 524 375 500 116 400 400 402 300 220 269 200 200 97 100 (19) (10) 41 0 0 Q3/14 Q2/15 Q3/15 -100 Q3/14 Q2/15 Q3/15 -200 -200 -300 Upstream

  6. Slide 6: Strong cash generation despite difficult oil price environment

    Strong cash generation despite difficult oil price environment Sources of funds 1 in EUR mn 2,633 2,579  Integrated business model  Very strong cash generation in Downstream  Resilience of Upstream cash flow  Cost reduction measures 9m/14 9m/15 Brent price in USD/bbl 107 55 OMV indicator refinin

  7. Slide 7: Recent highlights

    Recent highlights Long-term cooperation with Borealis strengthened ► Schwechat and Burghausen refinery each prolonged an offtake agreement for ethylene and propylene with Borealis until 2028 ► Optimized contract structure ensures increasing utilization of refineries Progress achieved regarding partn

  8. Slide 8: Framework for strategic review

    Framework for strategic review ► Improve cash flow & profitability ► Continue integrated business model ► Upstream growth will remain focus 8 | OMV Group, Results January-September and Q3 2015

  9. Slide 9: Results Q3/15

    Results Q3/15 David C. Davies, Deputy Chairman of the Executive Board and CFO OMV Aktiengesellschaft

  10. Slide 10: Q3/15 Highlights

    Q3/15 Highlights Clean CCS EBIT Q3/15 vs. Q3/14 in EUR mn  Average Brent price down by 50% to 656 USD 50/bbl  Production at 292 kboe/d, down by 6% 495 60  Lower oil sales volumes in Upstream, mainly (403) due to Libya 182  Higher Downstream result due to strong refining performance  Gearing rat

  11. Slide 11: Economic environment

    Economic environment Oil price and EUR/USD Gas prices in EUR/MWh OMV indicator refining margin in USD/bbl 7.8 140 1.33 1.4 25 8 21 7 120 1.11 1.2 20 102 20 17 16 6 100 1.0 4.9 15 5 80 0.8 4 60 50 0.6 10 3 40 0.4 2 5 20 0.2 1 0 0.0 0 0 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14

  12. Slide 12: Results in Q3/15

    Results in Q3/15 Clean CCS net income attributable in EUR mn Q3/15 Q3/14  to stockholders 1 EBIT (744) 570 n.m. in EUR mn Financial result 9 (31) n.m. Profit from ordinary activities (735) 539 n.m. Taxes 259 (195) n.m. 367 Effective tax rate 35% 36% (3)% Net income (477) 344 n.m. Minorities and hy

  13. Slide 13: Special items and CCS effect

    Special items and CCS effect Q3/15 in EUR mn Q3/15 Q3/14 in EUR mn Clean CCS EBIT 495 656 495 CCS gains/(losses) (149) (62) (149) Clean EBIT 345 593 (16) Personnel related costs (16) (22) Unscheduled depreciation (1,088) (1) Asset disposals 0 (4) (1,088) Other 14 4 Total special items (1,090) (23) 1

  14. Slide 14: Impairments recorded in Q3/15

    Impairments recorded in Q3/15 Unscheduled depreciation in Q3/15 Oil price and EUR-USD FX-rate in EUR mn assumptions 1,088 1.35 1.35 140 1.30 1.4 Downstream 120 1.15 1.15 1.15 1.15 1.15 1.2 105 105 100 90 1.0 85 Upstream 80 80 70 0.8 70 60 55 55 0.6 40 0.4 2015 2016 2017 2018 2019 onwards Downstream

  15. Slide 15: Cash flow

    Cash flow 9m/15 in EUR mn 9m/15 9m/14  in EUR mn (467) Net income 36 957 (96)% (179) Depreciation and 3,010 1,888 59% 3,010 amortization (2,297) Other (467) (212) 120% 36 103 (530) Sources of funds 2,579 2,633 (2)% (426) Change in net working Net income Depreciation Other Change in Cash flow Free D

  16. Slide 16: CAPEX and EBITD

    CAPEX and EBITD 9m/15 in EUR mn Key investments in Q3/15 2,713  Field developments and redevelopments in Norway: Aasta Hansteen, Gullfaks and Edvard Grieg 1,997 1,378  Romania: drilling, workovers and field redevelopments  Exploration activities 1,702  Schiehallion field redevelopment in the UK

  17. Slide 17: Upstream Clean EBIT

    Upstream Clean EBIT in EUR mn Q3/15 vs. Q2/15 Q3/15 vs. Q3/14 455 (374) 116 52 52 (163) (148) 129 (17) 139 56 (65) 25 (47) Q3/14 Realization Volume Exploration DD&A Other Q3/15 Q2/15 Realization Volume Exploration DD&A Other Q3/15 expenses expenses  Lower oil price by 18%  Lower oil price by 50% 

  18. Slide 18: Upstream Key Performance Indicators

    Upstream Key Performance Indicators Hydrocarbon production in kboe/d Q3/15 vs. Q2/15 311 318 303 307  Production decreased by 5% 292  Romania: planned workovers at key 163 164 150 154 148 wells  Norway: planned turnaround at the 149 154 152 152 143 Gullfaks field Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Oil

  19. Slide 19: Upstream OMV Petrom group

    Upstream OMV Petrom group Hydrocarbon production in kboe/d Q3/15 vs. Q2/15 178 182 184 181  Clean EBIT at EUR 94 mn 174 (down from EUR 124 mn) 84 84 85 85 83  Lower oil price and lower sales volumes 95 97 98 96 91  Positive impact from oil price hedges and lower exploration expenses as Q3/14 Q4/1

  20. Slide 20: Downstream Clean CCS EBIT

    Downstream Clean CCS EBIT Q3/15 vs. Q3/14 in EUR mn (42) 402 225 220 Q3/14 Downstream Oil Downstream Gas Q3/15  Significantly higher OMV indicator refining margin  Strong petrochemicals business driven by increased margins  Weaker gas market environment 20 | OMV Group, Results January-September a

  21. Slide 21: Downstream Key Performance Indicators

    Downstream Key Performance Indicators Refining utilization rate in % 1 Q3/15 vs. Q3/14 103 101 95 94 96 82 86 81 93 94  Overall refining utilization rate at 93%  Total refined product sales increased slightly  Retail sales volumes up by 7% Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 West East  Borealis contri

  22. Slide 22: Outlook 2015

    Outlook 2015 Oil price Annual average between USD 50 and 60/bbl expected Refining margins Expected to decline from 9m/15 level Retail volumes Lower product prices expected to support demand Gas markets Remain challenging Production ~300 1 kboe/d CAPEX EUR ~2.7 bn (~80% Upstream) E&A 2 expenditure EU

  23. Slide 23: Disclaimer

    Disclaimer This document does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract, investment decisions or commitment whatsoever.

  24. Slide 24: OMV Aktiengesellschaft

    OV OMV OMV Aktiengesellschaft OuvV Moving more. Moving the future. O M V

OMV Aktiengesellschaft — Q3 2015 Earnings Presentation on 6ix