Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Q4 2023 Earnings Presentation
19 slides from Omv Petrom Sa's earnings presentation, Feb 1, 2024
Slide 1: OMV Petrom Q4/23 Results
OMV Petrom Q4/23 Results Christina Verchere, CEO February 1, 2024
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, constituting or forming part of, any actual offer to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares issued by the Company or any
Slide 3: Lower commodity prices
Commodity prices Lower commodity prices Oil prices FX OMV Petrom indicator refining margin USD/bbl RON/USD, RON/EUR USD/bbl 4,9 4,9 4,9 4,9 5,0 18,8 4,8 16,6 16,8 4,6 4,5 4,5 4,6 11,2 10,8 89 81 78 87 84 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Avg USD/RON Avg EUR/RON Avg Brent pr
Slide 4: Mixed demand evolution despite economic growth
Romanian environment Mixed demand evolution despite economic growth GDP 4.8% 2.9% 2.2% 3.1% Growth expected 20221 Q3/231 2023e2 2024e2 Inflation 6.6% 7.5% 4.8% (CPI) On a downward Dec 23/Dec 221 2023e3 2024e3 trend Romania maintained at investment grade by major rating agencies4 Demand Q4/23 yoy 202
Slide 5: Persisting regulated business environment
Romanian regulatory and fiscal framework Persisting regulated business environment Regulatory interventions Highly regulated gas sales portfolio Gas and power sector: Q4/23 Q3/23 Law 357/2022 and Law 206/2023: price caps for gas and power, price 20% 30% cap for gas used in power production, regulate
Slide 6: Key messages Q4/23
Key messages Q4/23 Continued to deliver on our Strategy 2030 Good financial performance Clean CCS Operating result Operating Cash Flow Clean CCS ROACE RON 2.2 bn RON 2.0 bn 26.5% +9% yoy +15% yoy -11.5 pp yoy Operational performance Strategic focus Base dividend proposal1: RON 0.0413/share, up 10% y
Slide 7: Resilient performance
Operational performance Resilient performance Exploration and Production Refining and Marketing Gas and Power Hydrocarbon production Refinery utilization rate Gas sales volumes kboe/d % TWh -7% -7% -4 pp 0% 118 116 114 113 110 99 98 95 95 12,5 13,1 12,5 11,7 57 56 55 54 54 9,5 31 61 60 59 59 56 Q4/2
Slide 8: Entering the most investment intensive period in our history
CAPEX Entering the most investment intensive period in our history Group CAPEX1 RON bn ~8 2023 2024E RON 4.7 bn: RON ~8 bn: 45 new wells and sidetracks; ~500 Neptun Deep project workovers Wells and sidetracks: ~40; <500 Neptun Deep project workovers 4.7 Coke drums replacement SAF/HVO2 production uni
Slide 9: Outstanding year for strategy execution
Strategy 2030 in action Outstanding year for strategy execution Neptun Deep Renewable power E-mobility Attractive dividends • FID taken in June 2023 • CE Oltenia partnership1: • 270 charging points installed • Record high paid in 2023 • >80% of execution 450 MW; EU financing at end-2023 • Base DPS:
Slide 10: OMV Petrom Q4/23 Results, Alina Popa, CFO
OMV Petrom Q4/23 Results Alina Popa, CFO February 1, 2024
Slide 11: Robust results
Income Statement Robust results Clean CCS Operating Result RON bn Q4/23 Clean CCS Operating Result reflects: +9% -30% 2.2 12.2 ► Lower commodity prices and refining margin 2.1 0.1 0.1 2,9 8.5 0,5 ► Lower electricity sales quantities 0,9 4,0 2,1 0,7 2,5 ► Higher refined products 1,1 0,9 5,4 4,2 0.0 ►
Slide 12: Solid Operating Results
Clean CCS Operating Result Solid Operating Results E&P RON mn Lower E&P taxation 1.076 143 -309 909 Realized crude price -6%; lower realized gas price Hydrocarbon sales -7% Higher production costs Negative FX effect Q4/22 Market effects1 Operational effects Q4/23 R&M and G&P RON mn Refined products
Slide 13: Strong cash generation, improved working capital
Cash flow Strong cash generation, improved working capital Cash Flow from Operating Activities RON bn -11% +15% 1.8 11.3 2.0 10.1 Q4/23 Cash Flow from Operating Activities: 2,7 14,9 9,7 ► Decrease in operating cash flow before working capital changes 2,3 1.9 ► Improved working capital -0.3 -3,5 -1,5
Slide 14: Base dividend up 10% yoy, special dividend to be announced
Dividend proposal for 2023 Base dividend up 10% yoy, special dividend to be announced Progressive base dividends Competitive among our peers Dividend yield 2022-2023 2,3 DPS RON/share % 19.6 0.0791 0.0825 0,0450 0,0450 6,5 5,6 +10% +10% 8,9 7.2 1 0,0341 0,0375 0,0413 2021 2022 2023 2022 2023 Special
Slide 15: Outlook 2024-2026
Outlook 2024-2026 Indicators Actual Assumptions/ Targets Assumptions/ Targets 2023 2024 2025-2026 averages Brent oil price USD 82.6/bbl USD ~80/bbl USD ~70-75/bbl Production 1 113.3 kboe/d >106 kboe/d ~100 kboe/d Refining margin USD 14.0/bbl USD ~10/bbl USD ~10/bbl CAPEX RON 4.7 bn RON ~8 bn RON ~8
Slide 16: Q&A
Q&A February 1, 2024 OMV Petrom
Slide 17: Back-up
Back-up February 1, 2024 OMV Petrom
Slide 18: Sensitivities: EBIT impact in 2024
Sensitivities EBIT impact in 2024 2024 sensitivities Change EBIT impact Brent oil price USD +1/bbl ~EUR +15 mn OMV Petrom indicator refining margin USD +1/bbl ~EUR +30 mn Exchange rates EUR/USD USD appreciation by 5 USD cents ~EUR +50 mn 18 OMV Petrom Q4/23 Results
Slide 19: OMV Petrom
@ OMV Petrom