Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q4 2022 Earnings Presentation
19 slides from Omv Petrom Sa's earnings presentation, Feb 2, 2023
Slide 1: OMV Petrom Q4/22 Results
OMV Petrom Q4/22 Results Christina Verchere, CEO February 2, 2023 OMV Petrom S.A.
Slide 2: Legal disclaimer
Legal disclaimer This presentation does not, and is not intended to, constitute or form part of, and None of the future projections, expectations, estimates or prospects in this should not be construed as, constituting or forming part of, any actual offer to sell presentation, including (without bei
Slide 3: Still high and volatile commodity prices
Still high and volatile commodity prices Oil prices FX OMV Petrom indicator refining margin1 USD/bbl RON/USD, RON/EUR USD/bbl 4.9 4.9 4.9 4.9 4.9 4.6 4.9 4.8 24.4 4.3 4.4 114 18.3 17.1 18.8 102 101 80 78 90 89 79 74 64 7.5 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Avg USD/RON Avg E
Slide 4: Romanian environment: 2022 GDP stronger than expected; mixed demand evolution
Romanian environment: 2022 GDP stronger than expected; mixed demand evolution GDP growth GDP: Q3/221: 4.6% yoy; 9m/221: 4.9%; 2023e2: +3.1% yoy; 2024e2: 3.8% Inflation on an upward trend CPI: December 22/December 211: 16.4%; 2023e3: 11.2%; 2024e3: 4.2% Romania maintained at investment grade by m
Slide 5: Regulatory and fiscal environment has further deteriorated
Regulatory and fiscal environment has further deteriorated New regulations in 2022 2022 specific sector taxes Gas and power market: 2022 2022 yoy bn RON Law 357: approving GEO 119; most deadlines extended to Total direct taxes and March 2025 3.7 times 9.7 contributions, thereof GEO 153: obligati
Slide 6: Key messages Q4/22
Key messages Q4/22 Strong financial performance Clean CCS Operating result Operating Cash Flow Clean CCS ROACE RON 2.1 bn RON 1.8 bn 38.0% +38% yoy -13% yoy +25pp yoy Good operational performance Strategic focus Good contribution from drilling and workover partly offset Base dividend proposal1:
Slide 7: Good operational performance in the context of lower market demand
Good operational performance in the context of lower market demand Exploration and Production Refining and Marketing Gas and Power Hydrocarbon production Refinery utilization rate Gas sales volumes kboe/d % TWh -3% -3% -2% -2 pp +2% 122 121 120 117 118 101 99 99 12.3 12.7 12.5 98 11.0 60 58 57 57 9.
Slide 8: Increasing CAPEX
Increasing CAPEX Group CAPEX1 RON bn 2022 2023E ~6 RON 3.6 bn: RON ~6 bn: 55 new wells and sidetracks; ~650 Wells and sidetracks: ~55; ~450 workovers workovers Energy efficiency and EOR projects Neptun Deep project 3.6 Planned major turnaround in Petrobrazi 2.8 Coke drums replacement
Slide 9: Strategy 2030 – Transforming for a lower carbon future
Strategy 2030 – Transforming for a lower carbon future Execution in 2022 Focus areas in 2023 Transition to low and zero carbon Renewable power Partnership concluded with CEO for 450 MW Continue developing our renewables portfolio Biofuels First batch of SAF produced at Petrobrazi Progress with t
Slide 10: OMV Petrom Q4/22 Results – Alina Popa, CFO
OMV Petrom Q4/22 Results Alina Popa, CFO February 2, 2023 OMV Petrom S.A.
Slide 11: Income Statement: strong results
Income Statement: strong results Clean CCS Operating Result RON bn +38% +181% Q4/22 Clean CCS Operating Result reflects: 2.1 12.2 0.1 ► Higher commodity prices and refining margin 1.5 2.9 0.4 0.9 4.3 4.0 ► Higher sales volumes for all our products 0.6 1.1 0.8 0.6 2.0 5.4 ► Higher power and fuel ta
Slide 12: Clean CCS Operating Results improved in E&P and R&M; G&P affected by regulation
Clean CCS Operating Results improved in E&P and R&M; G&P affected by increased regulation and overtaxation E&P 1,076 RON mn -62 Realized crude price +11% 550 Higher gas prices and lower gas overtaxation 588 Positive FX effect on revenues Hydrocarbon sales -4% Higher production costs Q4/21
Slide 13: Cash flow
Cash flow Cash Flow from Operating Activities RON bn -13% +62% 1.8 11.3 Q4/22 Cash Flow from Operating Activities: 2.0 7.0 ► Increase in operating cash flow before working capital changes 2.7 14.9 2.0 7.4 ► Negative NWC 0.0 -0.4 -0.9 -3.5 Q4/21 Q4/22 2021 2022 Cash generated from operating activit
Slide 14: 2022 Base dividend proposal: RON 2,337 mn, up 10% in line with policy
2022 Base dividend proposal: RON 2,337 mn, up 10% in line with policy Base DPS1 2022: RON 0.0375, +10% yoy Dividend yield2 2022: 8.9% (2021: 15.9%, including special dividend) Payout ratio 2022: 23% (2021: 156%, including special dividend) Special dividend to be announced mid-2023 DPS Divide
Slide 15: Outlook
Outlook Indicators Actual Assumptions/ Targets Assumptions/ Targets 2022 2023 2024-2025 averages Brent oil price USD 101.3/bbl USD >80/bbl USD ~75/bbl Production 1 119 kboe/d ~110 kboe/d 95 – 100 kboe/d Refining margin 2 USD 16.6/bbl USD >9/bbl USD ~9/bbl CAPEX RON 3.6 bn RON ~6 bn RON ~7 bn FCF bef
Slide 16: Q&A
OMV Petrom S.A. @ OMV Petrom The energy for a better life.
Slide 17: Back-up
OMV Petrom S.A. @ OMV Petrom The energy for a better life.
Slide 18: Sensitivities in 2023
Sensitivities in 2023 2023 sensitivities EBIT impact Brent oil price USD +1/bbl ~EUR +15 mn Equity gas price 1 EUR +1/MWh ~EUR +10 mn in a free market scenario OMV Petrom indicator USD +1/bbl ~EUR +25 mn refining margin Exchange rates USD appreciation ~EUR +50 mn EUR/USD by 5 USD cents 1 This sensit
Slide 19: Clean CCS Operating Results improved throughout all business segments
Clean CCS Operating Results improved throughout all business segments E&P 5,433 Realized crude price +45% RON mn 14 Higher gas price, partially offset by higher royalties and gas overtaxation 3,605 Positive FX effect on revenues 1,814 Lower depreciation Hydrocarbon sales -7% 2021 Market ef