Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Shareholder Meeting (April 2015)
18 slides from Omv Petrom Sa's shareholder meeting presentation, Apr 28, 2015
Slide 1: OMV Petrom Group 2014 Overview and 2015 Outlook
OMV Petrom Group 2014 Overview and 2015 Outlook General Meeting of Shareholders April 28, 2015 Mariana Gheorghe, CEO
Slide 2: Agenda
1 10 years from privatization 2 Context 2014 3 Operational review 2014 4 Outlook 2015 and challenges ahead 2 | General Meeting of Shareholders, April 28, 2015
Slide 3: 10 years from privatization
10 years from privatization Broadly complete company’s successful transformation New technologies and infrastructure modernization Several discoveries onshore and offshore From an inefficient Production stabilized Secure state-owned company production to a high-performing company which continu
Slide 4: 2021 Strategy: delivered on 2012-2014 objectives
2021 Strategy We have delivered on our 2012-2014 objectives 2012-2014 - DELIVERED 2015+ Strategic directions remain… …but pace depends on market fundamentals Stabilize production through field and investment friendly environment redevelopment, drilling, workovers ► Increase ultimate oil and gas re
Slide 5: Context 2014
1 10 years from privatization 2 Context 2014 3 Operational review 2014 4 Outlook 2015 and challenges ahead 5 | General Meeting of Shareholders, April 28, 2015
Slide 6: 2014 at a glance
2014 at a glance Unfavorable crude price environment in the 2nd part of the year Lower demand for fuels and gas Environment Better environment for refining Consolidated sales decreased 11%: lower oil product and gas volumes sold Financial EBIT decreased 44%: lower crude and oil products pr
Slide 7: Dynamics of the Romanian energy sector
Dynamics of the Romanian energy sector Demand under pressure Gas -4%; Power almost stable; Fuels -2.6% Demand and prices Prices 2014 vs 2013 Urals: -10% Gas price deregulation continued; power prices1 almost stable Gas and Power: undergoing structural changes Price liberalization: NHH2
Slide 8: Operational review 2014
1 10 years from privatization 2 Context 2014 3 Operational review 2014 4 Outlook 2015 and challenges ahead 8 | General Meeting of Shareholders, April 28, 2015
Slide 9: Health Safety Security and Environment (HSSE)
Health Safety Security and Environment (HSSE) - Strong focus on safety and efficiency E&P LTIR1 Romania 1.6 OMV Petrom LTIR substantially improved2 (0.30 in 2014 better than international > 35% benchmark) reduction 0.8 0.63 0.60 0.53 0.48 0.40 People more intensively trained in HSSE, which has b
Slide 10: E&P – second year of marginal production increase in Romania
E&P – second year of marginal production increase in Romania Romania daily production kboe/d Group production broadly stable at -4% 180 kboe/d -2% Romania: drillings & workovers main contributors to production stabilization 11% of production from workovers & new wells 171.3 171.4 8% of product
Slide 11: E&P - Exploration: increased activity for long term growth
E&P - Exploration Increased activity to ensure long term growth Largest exploration budget in 10 years Black Sea deep water exploration continued Discoveries in 2014 Neptun Deep Marina (oil) – Black Sea shallow waters Domino-2 completed in Q4; data under Padina (Oil&gas) - with Hunt Oil, large
Slide 12: G&P – deteriorated market environment
G&P – deteriorated market environment Romanian gas demand (bcm) Other* Lower gas sales volumes OMV Petrom gas sales 15 14.2 13.6 Domestic consumption down by 4% vs 2013: lower demand from 12.5 12.0 fertilizers and mild winter 10 OMV Petrom Group’s gas sales down by 9% to 4.4 bcm: lower consumpti
Slide 13: R&M – challenging market environment
R&M – challenging market environment, inspite of good refining performance 35% Middle distilates ~45% Strong performance following Petrobrazi Other modernization Own crude consumption Approx. EUR 600 mn in 2010-2014 for modernization 53% ~45% Fuels & losses decreased below 10% 12% 10% Yield 2011
Slide 14: R&M - Petrobrazi refinery is delivering expected results
R&M - Petrobrazi refinery is delivering the expected results Indicator refining margin1 improved; F&L on a downward trend USD/bbl % 15 15 13 12 11 10 10 9 10 5 1.9 5 0 ► First year with positive refining result 0.3 (0.5) ► ~ USD 5/bbl higher indicator refining margin2 -5 0 ► Reduced F&L (below 10%)
Slide 15: Outlook 2015 and challenges ahead
1 10 years from privatization 2 Context 2014 3 Operational review 2014 4 Outlook 2015 and challenges ahead 15 | General Meeting of Shareholders, April 28, 2015
Slide 16: Outlook 2015
Outlook 2015 International Oil price: Brent average USD 50-60/bbl market Refining margin: Expected to come down from the recent highs Gas: Under pressure, increased competition Romanian Power: Stable, prices under pressure market demand Fuels: Supported by lower prices, competition Upstream: Decreas
Slide 17: OMV Petrom is prepared to cope with challenges
Within the current volatile environment OMV Petrom is prepared to cope with challenges Competitive financial Track record in managing Integrated company position challenges Low gearing ratio Oil value chain – Petrobrazi, Swift measures for 2008/2009 upstream integrated refinery Strong cash position
Slide 18: In a nutshell
In a nutshell ► Strong foundation to cope with current market downturn ► Decisive actions regarding CAPEX and OPEX ► Maximize integrated value ► Neptun Deep exploration to continue ► Public consultations on taxation and regulatory framework ► Shareholder return 18 | General Meeting of Shareholders,