Slide 1: OMV Petrom Q3/20 Results
OMV Petrom Q3/20 Results Christina Verchere, CEO October 29, 2020 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: Economic environment
Economic environment Oil price (USD/bbl) Gas prices (EUR/MWh)1 21.5 62.0 63.1 50.1 14.8 43.4 13.8 62.0 62.8 29.9 9.6 9.8 48.1 42.9 13.0 11.2 10.6 29.6 8.8 6.7 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Avg Urals price in USD/bbl Avg Brent price in USD/bbl Romanian centralized market
Slide 4: Romanian environment
Romanian environment Fiscal and regulatory Macroeconomic environment framework Authorities’ reaction to COVID: GDP growth: State of alert since mid-May Q2/201: -10.2% yoy Health and social, fiscal and monetary measures 2020e2: -4.8% yoy National Investment and Economic Relaunch Plan CPI an
Slide 5: Key messages Q3/20
Key messages Q3/20 performance Financial Clean CCS Operating Cash Clean CCS Operating result Flow ROACE RON 0.6 bn RON 1.7 bn 8.4% Managed crisis with no business interruptions, good net working capital and asset utilization Operational highlights Upstream: Natural decline and increased maintenanc
Slide 6: Operational KPIs
Operational KPIs Upstream Downstream Oil Downstream Gas Hydrocarbon production OMV Petrom Indicator Gas sales volumes (kboe/d) refining margin (USD/bbl) (TWh) -6% -2% -85% -38% -9% -2% 150 152 150 147 141 6.75 19.85 18.61 6.46 71 72 72 71 69 4.68 13.37 13.06 12.11 79 80 79 76 73 1.85 0.94 Q3/19 Q4/1
Slide 7: CAPEX and E&A
CAPEX and E&A Group organic CAPEX incl. Organic CAPEX incl. capitalized E&A capitalized E&A (RON bn) 9m/20 at RON 2.2 bn: 43 new wells and sidetracks -30% ~610 workovers -30% 4.2 Securing long-term logistic access to Petrobrazi refinery Bio-compliance blending project -21% -21% 3.0 2.8 2
Slide 8: Ongoing response to the current crisis while progressing with our sustainability journey
Ongoing response to the current crisis while progressing with our sustainability journey Health and safety – our first priority Ensuring security of energy supply Managing crisis with no business interruptions Integrated business model continues to support financial results Continuous business optim
Slide 9: OMV Petrom Q3/20 Results – CFO
OMV Petrom Q3/20 Results Alina Popa, CFO October 29, 2020 OMV Petrom S.A.
Slide 10: Income Statement highlights
Income Statement highlights Clean CCS Operating Result (RON bn) Q3/20 Clean CCS Operating Result reflects: -47% 3.45 ► Lower oil and gas prices -54% -54% 1.82 ► Weak refining margin 1.23 0.57 ► Decreased fuel sales volumes partially offset by solid margins Q3/19 Q3/20 9m/19 9m/20 ► Significantly h
Slide 11: Special items and CCS effect
Special items and CCS effect Q3/20 Impairment of Upstream assets due to update of RON mn Q3/20 Q3/19 9m/20 9m/19 long-term oil price assumptions Clean CCS Operating Result 570 1,228 1,821 3,452 Provision for restructuring, mainly in Upstream CCS effects: Inventory holding (53) (44) (437) 25 gain
Slide 12: Clean CCS Operating Result
Clean CCS Operating Result Upstream Lower oil and gas prices (RON mn) Negative FX effect 546 Hydrocarbon sales -6% -711 103 Lower clean exploration expenses -58 74 (46) Q3/19 Market Volume Exploration Other Q3/20 Ongoing cost optimization effects Lower depreciation Downstream Improved
Slide 13: Cash Flow highlights
Cash Flow highlights Cash Flow from Operating Activities (RON bn) -14% 5.03 4.31 -18% 2.09 5.23 3.59 Q3/20 CFO: lower decrease than Operating Result due 1.72 1.86 1.35 to improved net working capital 0.24 0.37 0.72 -0.20 Q3/19 Q3/20 9m/19 9m/20 Sources of funds Net Working Capital Free Cash Flow 1
Slide 14: Strong response to adjust to the weak market environment
Strong response to adjust to the weak market environment Reductions of Realized reductions ~RON 2.0 bn of ~RON 1.3 bn (2020 vs. 2019) (9m/20 vs. 9m/19) Rephased and optimized long-term delivery projects Cut of non-committed CAPEX RON 1.2 bn1 Reduced (30%)2 RON 0.6 bn3 Decrease by >30% of numbe
Slide 15: Sensitivities in 2020
Sensitivities in 2020 OMV Petrom Group main sensitivities Operating Result impact Brent oil price USD +1/bbl ~EUR +20 mn Equity gas price EUR +1/MWh ~EUR +20 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +25 mn USD appreciation by 5 USD Exchange rates (EUR/USD) ~EUR +30 mn cents 15 | OMV P
Slide 16: Outlook 2020
Outlook 2020 Assumptions/Targets Indicators Actual 2019 Actual 9m/20 2020 Brent oil price USD 64.21/bbl USD 41.06/bbl USD 40/bbl Production 152 kboe/d 146 kboe/d decline below 5% yoy 1 USD ~3/bbl Refining margin USD 4.67/bbl USD 3.19/bbl (previously: USD <4/bbl) CAPEX 2 RON 4.2 bn RON 2.2 bn RON ~3.
Slide 17: Q&A
OMV Petrom S.A @ OMV Petrom The energy for a better life.
Slide 18: Back-up
OMV Petrom S.A @ OMV Petrom The energy for a better life.
Slide 19: Clean CCS Operating Result
Clean CCS Operating Result Upstream (RON mn) Lower oil and gas prices 2,144 One-off positive effect in Q1/19 -2,212 Favourable FX -87 104 32 (19) Lower clean exploration expenses 9m/19 Market Volume Exploration Other 9m/20 effects Downstream (RON mn) Gas sales volumes: +25% 1,667 Improve