Omv Petrom Sa · BVB:SNP

Omv Petrom Sa — Q4 2021 Earnings Presentation

18 slides from Omv Petrom Sa's earnings presentation, Feb 3, 2022

  1. Slide 1: OMV Petrom Q4/21 Results

    OMV Petrom Q4/21 Results Christina Verchere, CEO February 3, 2022 Picture: Brazi Power Plant OMV Petrom S.A.

  2. 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

  3. Slide 3: Increasing, but still volatile commodity prices

    Increasing, but still volatile commodity prices Oil prices FX OMV Petrom indicator refining margin USD/bbl RON/USD, RON/EUR USD/bbl 7.2 7.5 4.9 4.9 4.9 4.9 4.9 4.1 4.1 4.2 4.3 4.0 80 4.3 74 71 78 69 67 61 60 2.8 44 44 2.0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Avg USD/RON Avg EU

  4. Slide 4: Romanian environment recovered to pre-COVID levels; increasing inflationary and regulatory pressure

    Romanian environment recovered to pre-COVID levels; increasing inflationary and regulatory pressure Strong GDP growth;  GDP: 9m/211: 6.9% yoy; 2021e2: +7.0% yoy CPI on an upward trend  CPI: Dec 21/Dec 201: 8.2% Recent regulatory  Temporary measures related to high gas and changes power invoices 

  5. Slide 5: Key messages Q4/21

    Key messages Q4/21 Strong financial performance Clean CCS Operating result Operating Cash Flow Clean CCS ROACE RON 1.5 bn RON 2.0 bn 12.7% +222% yoy +62% yoy vs. 6.4% in Q4/20 Good operational performance Strategic focus  Dividend proposal1: 0.0341/share, 10% up yoy  Record high quarterly Brazi po

  6. Slide 6: Operational performance reflects recovering market demand in a volatile environment

    Operational performance reflects recovering market demand in a volatile environment Upstream Downstream Oil Downstream Gas Hydrocarbon production Refinery utilization rate Gas sales volumes kboe/d % TWh +5% -7% -13% -3% +1% 100 101 14.4 13.2 12.3 140 139 134 96 95 11.2 11.1 123 122 91 67 67 65 61 60

  7. Slide 7: CAPEX ramping up

    CAPEX ramping up Group organic CAPEX1 RON bn 2021 2022E +40%  RON 2.8 bn:  Up to RON ~4.0 bn: Organic <4.0 CAPEX  36 new wells and sidetracks;  Wells and sidetracks: ~60; ~600 -7% ~700 workovers workovers 3.0  Continued investments in  Coke drums replacement 2.8 modernization of the current 

  8. Slide 8: Strategy 2030 – focus areas in 2022

    Strategy 2030 – focus areas in 2022 Transition to low and  Alternative mobility: ~100 recharging stations to zero carbon be installed  Renewable power: develop the portfolio  Bioethanol: first steps towards producing second generation bioethanol Grow regional gas  Neptun: FID in 2023  Bulgaria:

  9. Slide 9: OMV Petrom Q4/21 Results – CFO

    OMV Petrom Q4/21 Results Alina Popa, CFO February 3, 2022 OMV Petrom S.A.

  10. Slide 10: Income Statement: results mainly supported by strong asset utilization and demand recovery

    Income Statement: results mainly supported by strong asset utilization and demand recovery Clean CCS Operating Result RON bn +90% 4.3  Q4/21 Clean CCS Operating Result reflects: +222% 2.3 ► Higher oil prices and refining margins 1.5 0.5 ► Excellent power performance Q4/20 Q4/21 2020 2021 Co&O and C

  11. Slide 11: Clean CCS Operating Results improved on oil and power businesses

    Clean CCS Operating Results improved on oil and power businesses Upstream RON mn -103 -65 588  Realized crude price +88% -26  Higher gas price, offset by royalties and gas overtaxation 755  Positive FX effect on revenues  Hydrocarbon sales -12% 26  Higher production costs Q4/20 Market effects V

  12. Slide 12: Strong cash flow generation

    Strong cash flow generation Cash Flow from Operating Activities RON bn +26% 7.0  Q4/21 Cash Flow from Operating Activities: 5.6 +62% ► Increase driven by Operating Result 4.6 7.4 2.0 ► Positive NWC, lower yoy 1.2 1.0 2.0 1.0 0.2 0.0 -0.4 Q4/20 Q4/21 2020 2021 Sources of funds Net Working Capital Fr

  13. Slide 13: 2021 Dividend proposal: RON 1,932 mn

    2021 Dividend proposal: RON 1,932 mn  DPS1 2021: RON 0.0341, +10% yoy  Dividend yield2 2021: 6.8%, (2020: 8.5%) Total shareholder return1,2 2021: +46% (2020: -12%) DPS Dividend yield1,2 2021 Financials 2021 Payout ratio RON/share % RON mn % 9.0 2,864 8.5 7.0 6.9 6.8 1,932 0.034 67% 0.027 0.031 0.0

  14. Slide 14: Outlook

    Outlook Indicators Actual 2021 Assumptions/ Targets 2022 Brent oil price USD 70.9/bbl USD 75/bbl Production in 127 kboe/d1 Decline ~7% yoy1 Romania Refining USD 5.5/bbl USD ~6/bbl margin CAPEX RON 2.8 bn Up to RON 4.0 bn2 FCF before RON 4.7 bn Positive dividends 1 Excluding portfolio optimization; 2

  15. Slide 15: Q&A

    OMV Petrom S.A. @ OMV Petrom The energy for a better life.

  16. Slide 16: Back-up

    OMV Petrom S.A. @ OMV Petrom The energy for a better life.

  17. Slide 17: Sensitivities in 2022

    Sensitivities in 2022 2022 sensitivities EBIT impact Brent oil price USD +1/bbl ~EUR +17 mn Equity gas price EUR +1/MWh ~EUR +10-151 mn OMV Petrom indicator USD +1/bbl ~EUR +25 mn refining margin Exchange rates USD appreciation ~EUR +35 mn EUR/USD by 5 USD cents 1 This sensitivity is valid for gas p

  18. Slide 18: Clean CCS Operating Results: improved oil price

    Clean CCS Operating Results: improved oil price Upstream RON mn  Realized crude price +75% -640 -49 1,814 -96  Hydrocarbon sales -11% 2,592  Higher production costs  Higher exploration expenses 7  Negative FX effect 2020 Market effects1 Volume Exploration Other 2021 Downstream RON mn  Signific

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