Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q1 2013 Earnings Presentation
27 slides from Orlen Spolka Akcyjna's earnings presentation, May 7, 2013
Slide 1: Consolidated Financial Results of the LOTOS Group Q1 2013
Consolidated Financial Results of the LOTOS Group Q1 2013 Management Board of Grupa LOTOS S.A. 7th May 2013
Slide 2: Agenda
Grupa LOTOS S.A. 1 Key highlights 2 Market Conditions 3 Market Conditions Upstream 4 Upstream Downstream 5 Downstream Overall financial results Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 2/27
Slide 3: Key Highlights: Q1 2013 in a Nutshell
Grupa LOTOS S.A. KEY HIGHLIGHTS Q1 2013 IN A NUTSHELL Upstream highlights Negotiations over removing the defective platform from Yme field – succesful outcome bringing USD 470m in damages for Yme licence holders (20% stake of Grupa LOTOS); signed on 12 march 2013 Agreement on the supply of Geona
Slide 4: Key Highlights: Q1 2013 Overall Figures
Grupa LOTOS S.A. KEY HIGHLIGHTS Q1 2013 OVERALL FIGURES Crude oil production amounted to 4,517 bbl/d (53.5k tonnes) Crude oil throughput amounted to 2,282 k tonnes Consolidated sales at the level of 2,293 k tonnes LOTOS model refining margin at the level of 4.46 USD/bbl, increased by 20.2% y
Slide 5: Market Conditions
Grupa LOTOS S.A. 1 Key highlights 2 Market Conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 5/27
Slide 6: Market Conditions: Key Factors
Grupa LOTOS S.A. MARKET CONDITIONS KEY FACTORS Refining margin Crude Oil Prices Increase in Brent/Ural spread in comparison with Q4’12 and Q1’12 Positive impact of increase in refining margin yoy, however a decrease qoq Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013
Slide 7: Market Conditions: FX Rates Development
Grupa LOTOS S.A. MARKET CONDITIONS KEY FACTORS FX rates development *end of period values The EUR/USD rate decreased qoq, while the USD/PLN rate increased qoq Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 7/27
Slide 8: Upstream
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 8/27
Slide 9: Geographical Coverage of LOTOS' Upstream Operations
Grupa LOTOS S.A. UPSTREAM GEOGRAPHICAL COVERAGE OF LOTOS’ UPSTREAM OPERATIONS Sales volumes (ths tonnes) Reserves (ths bbl) Production (bbl/d) Helsinki Oslo Stockholm Vilnius Warsaw Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 9/27
Slide 10: Upstream Sales and Production
Grupa LOTOS S.A. UPSTREAM UPSTREAM SALES AND PRODUCTION Crude oil production (k tonnes) -36% Net sales (PLN m) Commentary -26% Higher level of production in 1Q 12 due to test production from B8 field and slighlty higher volumes from Lithuania 1Q 13 revenues up vs 4Q12 thanks to much higher level
Slide 11: Upstream EBIT Development & Normalised EBIT
Grupa LOTOS S.A. UPSTREAM EBIT DEVELOPMENT & NORMALISED EBIT EBITDA (PLN m) EBIT (PLN m) -36% -48% Commentary The quarterly upstream EBIT at a level of PLN 70m, higher than in 4Q 12 and lower tan in 1Q 13 (no B8 production, lower sales from AB Geonafta) The results of 4Q were strongly affected b
Slide 12: Downstream
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 12/27
Slide 13: Downstream: Refinery Throughput
Grupa LOTOS S.A. DOWNSTREAM REFINERY THROUGHPUT Crude oil throughput (k tonnes) +0% -10% Lower quarterly throughput than in 4Q12, marked by lower share of Russian oil in the overall structure Stable y/y throughput figures Management Board - Consolidated Financial Results of the LOTOS Group Q1 20
Slide 14: Downstream: Sales of Products and Goods
Grupa LOTOS S.A. DOWNSTREAM SALES OF PRODUCTS AND GOODS Volume of sales (k tonnes) Commentary In Q1 ’13 total sales reached 2 294k tonnes (-1.5% y/y) The drop q/q due to seasonality and lower demand Seasonally lower sales of bituems y/y Sales revenues (m PLN) Commentary Quarterly sales reven
Slide 15: Downstream: Retail Market Share
Grupa LOTOS S.A. DOWNSTREAM RETAIL MARKET SHARE Retail market share Wholesale market share Petrol station network by type Visible drop in the overall market wholesale share Continuosly increasing market share in terms of retail (following the development of the petrol station network) * End of p
Slide 16: Downstream: Retail Results
Grupa LOTOS S.A. DOWNSTREAM RETAIL RESULTS Retail Net Sales (PLN m) Retail EBIT & Sales Volumes -5% Total 2012 retail sales down by 5% y/y with the market however declining at a stronger pace; the retail sales of the CODO stations up by 6% y/y The newly opened stations still to gain their full b
Slide 17: Downstream: Financial Results – Quarterly View
Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – QUARTERLY VIEW Downstream Net Sales (PLN m) -8% Decrease of the net sales in the downstream area, due to lower local demand and the preparation for the maintenance shutdown Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013
Slide 18: Downstream: Financial Results – EBITDA & EBIT
Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – EBITDA & EBIT Downstream EBITDA (PLN m) Downstream EBIT (PLN m) -83% n.m. Reported quarterly EBITDA and EBIT of the segment at the level of respectively PLN 82m and PLN -49m, significantly lower than in 1Q 2012 Management Board - Consolidated Financi
Slide 19: Downstream: LIFO EBITDA & EBIT Analysis
Grupa LOTOS S.A. DOWNSTREAM LIFO EBITDA & EBIT ANALYSIS LIFO EBITDA Downstream (PLN m) LIFO EBIT Downstream (PLN m) -3% -6% -162m -162m The LIFO EBITDA and LIFO EBIT at the respective levels of PLN 237m and PLN 106m The LIFO effect distorted by the decrease of oil inventories in preparation for
Slide 20: Overall Financial Results
Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 20/27
Slide 21: 1Q 2013 EBIT Analysis
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS 1Q 2013 EBIT ANALYSIS KEY ITEMS NEGATIVELY INFLUENCING THE REPORTED EBIT OF 1Q 2013 Preparation for the maintenance shutdown: Direct maintenance shutdown costs of PLN 13m Unrealised margin rolled onto the following quarter (products in the inventory k
Slide 22: LIFO Effect Analysis
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS LIFO EFFECT ANALYSIS 1Q 2013 LIFO effect analysis Commentary 1Q 2013 below the previous year with Normalised LIFO EBITDA reaching the level of PLN 302m Negative EBIT in 1Q 2013 mainly due to worse performance of the downstream segment (described in deta
Slide 23: Quarterly Segment Contribution
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS QUARTERLY SEGMENT CONTRIBUTION 1Q 2013 1Q 2012 Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 23/27
Slide 24: Balance Sheet Evolution
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS BALANCE SHEET EVOLUTION Assets Commentary The increase in the position of Other LT assets due to the compensation on the YME project +272m Liabilities Commentary -310m Decrease of the equity by PLN 310m due to net loss in the period and revaluation of U
Slide 25: Financial Debt and Gearing Ratio
Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS FINANCIAL DEBT 10 + related debt denominated in USD (PLN m) Financial debt (PLN m) -376m Gearing ratio End of the period appreciation of USD vs PLN causing a slight increase of the 10+ debt Management Board - Consolidated Financial Results of the LOTOS Gr
Slide 26: Thank You
Grupa LOTOS S.A. Thank You Investor Relations tel: +48 58 308 73 93 fax: +48 58 346 22 35 e-mail: ir@grupalotos.pl Management Board - Consolidated Financial Results of the LOTOS Group Q1 2013 26/27
Slide 27: Legal Disclaimer
Grupa LOTOS S.A. LEGAL DISCLAIMER • This presentation regarding the consolidated financial results of Grupa LOTOS S.A. after the first quarter of 2013 („Presentation") has been prepared by Grupa LOTOS S.A. ("Company"). The Presentation nor any copy hereof may be copied, distributed or delivered dire