Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q3 2014 Earnings Presentation
23 slides from Orlen Spolka Akcyjna's earnings presentation, Oct 29, 2014
Slide 1: LOTOS Group Q3 Consolidated Financial results
LOTOS Group Q3 Consolidated Financial results 29 October 2014 Grupa LOTOS S.A.
Slide 2: Disclaimer
Disclaimer Not for release, publication or distribution, directly or indirectly, in or into the United States of America, Australia, Canada or Japan. This presentation is for promotional purpose only and under no circumstances shall constitute an offer or invitation to make an offer, or form the bas
Slide 3: Agenda
Agenda 1 Key highlights 4-5 2 External environment 6-9 3 Upstream 10 - 13 4 Downstream 14 - 18 5 Consolidated financial results 19 - 23 Grupa LOTOS S.A. 3
Slide 4: Key highlights
Key highlights Grupa LOTOS LOTOSS.A. S.A. 4
Slide 5: Key highlights
Key highlights 7.55 401 12 716 +576 bn PLN m PLN boe/d m PLN Revenues Clean LIFO Upstream Operational Cash EBITDA production flow estimation Grupa LOTOS S.A. 5
Slide 6: External environment
External environment Grupa LOTOS LOTOSS.A. S.A. 6
Slide 7: External environment – oil price & product cracks
External environment – oil price & product cracks Brent ural spread (left axis) USD Brent price (right axis) USD 0,0 115,0 -0,5 -0,8 -1,5 -1,3 -1,5 -1,7 110,0 -1,0 -1,8 -1,9 112 -2,1 109 110 -1,5 108 107 108 -3,3 105,0 107 -2,0 -2,5 100,0 102 -3,0 95,0 97 -3,5 -4,0 90,0 Jan 14 Feb 14 Mar 14 Apr 14 M
Slide 8: Model refining margin vs peers
Model refining margin vs peers (1) (1) (1) (2) USD/bbl LOTOS PKN OMV ERMI 8,00 7,00 6,97 6,00 6,60 6,08 5,00 6,00 5,48 5,05 4,97 4,00 4,70 3,28 4,32 4,07 3,00 3,50 2,70 2,10 1,92 2,00 2,48 1,44 1,37 0,90 1,63 1,48 1,00 1,17 1,16 0,00 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 (1) Source: Compan
Slide 9: External environment – GDP growth & FX development
External environment – GDP growth & FX development % m m3 (3) Polish GDP growth Diesel consumption (Poland) 0.4 0.4 0.3 0.4 3,2 3,1 (1) 3,6 3,0 0.3 0.3 3,5 2,7 3,4 3,4 3,4 0.3 0.2 0.3 0.2 1,9 3,0 0.3 0.1 0.3 0.1 0,8 0.2 0.2 0.0 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0.2 Q2 2013 Q3 2013 Q4 2
Slide 10: Upstream
Upstream Grupa LOTOS LOTOSS.A. S.A. 10
Slide 11: Hydrocarbons reserves and production figures
Hydrocarbons reserves and production figures Average daily oil&gas production (boe/d) 2P oil&gas reserves (m boe) 12 716 12 377 66.8 1 446 1 434 55.5 7,3 51.0 3 802 3 844 7,7 7,8 40,9 4 815 34,5 1 475 (1) 37,8 (1) 7 141 7 426 3 340 18,6 13,3 5,4 Q3 13 Q2 14 Q3 14 Sep 13 eop June 14 eop Sep 14 eop No
Slide 12: Sales split by products and countries q/q
Sales split by products and countries q/q Q2 2014 sales (total quarterly boe) Q3 2014 sales (total quarterly boe) 24 870 23 993 328 188 474 117 157 947 270 657 122 536 118 822 88 872 65 657 Norway Poland Lithuania Norway Poland Lithuania Oil Gas Oil Gas Source: Company Grupa LOTOS S.A. 12
Slide 13: Upstream segment Clean EBITDA development
Upstream segment Clean EBITDA development m PLN -15% 125 65 106 40 41 EBITDA Q3'13 EBITDA Q2'14 One offs Clean EBITDA EBITDA Q3'14 One offs Clean EBITDA Q2'14 Q3'14 555 -430 Upstream’s Clean EBITDA at PLN 106m, down by 15% q/q following lower sales volumes in Poland Decreasing oil prices negativ
Slide 14: Downstream
Downstream Grupa LOTOS LOTOSS.A. S.A. 14
Slide 15: Refinery production - volumes of key products
Refinery production - volumes of key products k tons Diesel Gasoline Jet Fuel k tons HSFO Bitumens 490 1400 1 243 1 216 425 440 1 146 1 147 1200 1 048 390 334 1000 340 299 290 800 290 256 600 240 167 188 377 388 340 390 190 162 400 323 140 198 127 118 126 200 90 46 0 169 204 40 Q3 2013 Q4 2013 Q1 20
Slide 16: Share of key products in the overall refinery throughput
Share of key products in the overall refinery throughput 50% 45% 47% 45% 44% 40% 43% 43% 35% 30% 25% 20% 17% 14% 14% 15% 15% 13% 10% 12% 13% 12% 11% 10% 8% 6% 7% 8% 5% 5% 7% 5% 6% 4% 2% 0% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Diesel Gasoline JET HSFO Bitumens Source: Company Grupa LOTOS S.A. 16
Slide 17: Market share evolution and petrol station network
Market share evolution and petrol station network Overall market share (volumes) Premium Optima Other Retail market share (volume) 17 33.3% 33.7% 33.8% 33.5% 33.1% 151 158 160 9,2% 9,1% 271 272 272 8,3% 8,4% 8,5% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Aug 2014 Dec 2013 eop June 2014 eop Sep 2014 eop Reta
Slide 18: Downstream segment LIFO EBITDA development
Downstream segment LIFO EBITDA development m PLN +29% -48 372 52 419 -10 259 210 200 207 EBITDA Clean LIFO(1)Clean LIFO EBITDA LIFO effect LIFO EBITDA LIFO effect LIFO Q3'13 effect EBITDA Q2'14 estimation EBITDA Q3'14 estimation EBITDA estimation estimation estimation estimation Q3'13 Q2'14 Q3'14
Slide 19: Consolidated financial results
Consolidated financial results Grupa LOTOS LOTOSS.A. S.A. 19
Slide 20: Changes in segments EBITDA results y/y
Changes in segments EBITDA results y/y m PLN Resulting mainly from: Negative effect of the crude oil prices trend development -65 +66 Negative FX trend resulting in -103 effectively higher prices of feedstock throughput Resulting from: Heimdal assets -113 production Q3 2013 results artificia
Slide 21: Q3 2014 results breakdown vs Q3 2013
Q3 2014 results breakdown vs Q3 2013 m PLN 204 Q3 2014 401 +65 52 197 80 LIFO effect Clean LIFO EBIT Clean LIFO EBITDA EBIT estimation One off items estimation Depreciation estimation 55 (1) 155 -103 Q3 2013 447 340 293 Source: Company Grupa LOTOS S.A. (1) Effect of the „cheap” oil inventories lower
Slide 22: Indebtedness
Indebtedness (1) m PLN Gearing ratio Financial debt 72% 6 600 70% 6 500 70% 6 505 68% 6 461 6 400 66% 67% 6 300 64% 6 200 62% 6 211 62% 6 100 60% 58% 6 000 Dec 2013 eop Jun 2014 eop Sep 2014 eop Dec 2013 eop Jun 2014 eop Sep 2014 eop m PLN Net debt 6 200 Gearing ratio increased due to negative FX
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