Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Investor Presentation (May 2019)
20 slides from Omv Petrom Sa's investor presentation, May 13, 2019
Slide 1: OMV Petrom Romanian Investors and Analysts Event
OMV Petrom Romanian Investors and Analysts Event May 13, 2019 OMV Petrom S.A.
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, This presentation may contain forward-looking statements. These statements and should not be construed as, constituting or forming part of, any actual reflect the Company’s current knowledge and its expe
Slide 3: Agenda
Agenda 9:45 – 10:00 Registration and welcome coffee 10:00 – 12:00 Strategic Highlights Christina Verchere, CEO Upstream priorities Peter Zeilinger, EB member Downstream Oil priorities Radu Căprău, EB member Downstream Gas priorities Franck Neel, EB member Christina Verchere, CEO Q1/19 Results Alina
Slide 4: Progress towards achieving strategic objectives
Progress towards achieving strategic objectives Strong performance and attractive shareholder return Intensive drilling campaign Enhancing Continuous optimization of the competitiveness producing portfolio 2018 Highlights Increase operational efficiency Capital expenditure RON 4.3 bn Progr
Slide 5: Upstream: Focus on the most profitable barrels
Upstream: Focus on the most profitable barrels Enhance competitiveness Value over volume approach Simplify footprint and reduce complexity Further modernize and increase the run life of our equipment Apply innovative techniques to maximize recovery Our HSSE vision: ZERO Harm – NO Losses Deve
Slide 6: Downstream Oil: Be the Downstream Oil champion in the region
Downstream Oil: Be the Downstream Oil champion in the region Secure strong Ensure reliable operations position on the retail at competitive costs while market via dual brand embedding new strategy: technologies Petrom as “Value for money” and OMV as “High quality leader” Future-proof our competitive
Slide 7: Downstream Gas: Increase value captured from market opportunities
Downstream Gas: Increase value captured from market opportunities Maintain the leading position Improve agility, automate processes on the Romanian gas market Develop origination and trading and activities pursue growth directions Grow power sales to end customers Maximize availability of Br
Slide 8: Agenda
Agenda 9:45 – 10:00 Registration and welcome coffee 10:00 – 12:00 Strategic Highlights Christina Verchere, CEO Upstream priorities Peter Zeilinger, EB member Downstream Oil priorities Radu Căprău, EB member Downstream Gas priorities Franck Neel, EB member Christina Verchere, CEO Q1/19 Results Alina
Slide 9: Economic environment
Economic environment Oil price (USD/bbl) Gas prices (EUR/MWh)1 25.1 25.0 25.9 74 75 20.5 21.3 24.5 74 69 22.6 73 20.9 67 68 18.2 63 16.7 65 63 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Avg Urals price in USD/bbl Avg Brent price in USD/bbl BRM future deliveries 2 CEGH 3 Power prices
Slide 10: Romanian environment
Romanian environment Macroeconomic environment Fiscal framework Provisional 2018 GDP growth1: +4.1% yoy; GEO 114/2018 amended by GEO 19/2019: Q4/18 GDP growth1: +4.0% yoy • gas price cap for CPI annual inflation: Q1/19: households5: RON 68/MWh 2.1%; Mar 19/Mar 18: 4.0% • regulated power price for ho
Slide 11: Key messages Q1/19 performance
Key messages Q1/19 performance Clean CCS Financial Operating Operating result Clean CCS Cash Flow ROACE RON 1.2 bn RON 1.5 bn 15.2% Portfolio optimization: Milestones Transfer of 9 marginal fields to Mazarine Energy Romania closed in March Strategic Divestment process for further fields ongoing
Slide 12: Operational KPIs
Operational KPIs Upstream Downstream Oil Downstream Gas OPEX OMV Petrom Indicator Gas sales volumes (USD/boe) refining margin (USD/bbl) (TWh) -2% -2% -45% -14% -14% -45% 11,89 11,67 11,66 14,20 10,41 10,73 6,56 6,72 6,62 12,88 12,23 5,27 10,51 9,74 3,62 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q1/18 Q2/18 Q3/1
Slide 13: CAPEX and E&A
CAPEX and E&A Group CAPEX incl. capitalized E&A CAPEX incl. capitalized E&A (RON bn) Q1/19 at RON 0.8 bn: 21 new wells and sidetracks drilled -14% 4.3 244 workovers performed 3.7 compliance projects in refining 2019E RON ~3.7 bn: Drilling ~100 wells and sidetracks -2% 0.8 0.8 Maintain a
Slide 14: Income Statement highlights
Income Statement highlights Clean CCS Operating Result (RON bn) +28% 1.43 Clean CCS Operating Result reflects: 1.23 0.96 ► Favorable commodities prices and FX development ► Higher sales volumes of fuels and electricity Q1/18 Q4/18 Q1/19 ► Lower exploration expenses Co&O and Cons Downstream Upstrea
Slide 15: Clean CCS Operating Result
Clean CCS Operating Result Upstream Higher realized gas prices (RON mn) 825 Favourable FX 645 161 -73 13 79 Clarification of a tax topic Lower exploration expenses Q1/18 Market Volume Exploration Other Q1/19 Sales volumes -5% effects Downstream (RON mn) 378 96% refining utilization rate
Slide 16: Cash Flow highlights
Cash Flow highlights Operating Cash Flow (RON bn) -16% -16% 1,80 1,82 1,51 Q1/19 Net working capital: cash outflow RON 188 mn Higher cash outflow for profit tax yoy, RON ~160 mn Q1/18 Q4/18 Q1/19 Free Cash Flow (RON bn) -9% 0,73 0,69 0,67 Q1/19 OCF1 -16% yoy Q1/19 CAPEX -2% yoy Q1/19 CFI2
Slide 17: Outlook 2019
Outlook 2019 Indicators Actual 2018 Assumptions/Targets 2019 Brent oil price USD 71/bbl USD 65/bbl USD <6.00/bbl Refining margin USD 6.28/bbl (previously USD ~6.28/bbl) Production 160 kboe/d ~ -5% yoy 1 CAPEX RON 4.3 bn RON 3.7 bn FCF after dividends RON 2.0 bn positive 1 Not including portfolio opt
Slide 18: Agenda
Agenda 9:45 – 10:00 Registration and welcome coffee 10:00 – 12:00 Strategic Highlights Christina Verchere, CEO Upstream priorities Peter Zeilinger, EB member Downstream Oil priorities Radu Căprău, EB member Downstream Gas priorities Franck Neel, EB member Christina Verchere, CEO Q1/19 Results Alina
Slide 19: Q&A Session
Q&A Session Join online: www.sli.do: #B885 19 | OMV Petrom Romanian Analysts and Investors Event, 13 May 2019
Slide 20: OMV Petrom Investor Relations
OMV Petrom Investor Relations Tel: +40 372 161 930 E-mail: investor.relations.petrom@petrom.com Homepage: www.omvpetrom.com OMV Petrom S.A.