Slide 1: Repsol 4Q and full year 2019 results
WEBCAST – CONFERENCE CALL Repsol 4Q and full year 2019 results 1
Slide 2: Disclaimer
Disclaimer ALL RIGHTS ARE RESERVED © REPSOL, S.A. 2020 The information included in this document is inside information pursuant to the provision of article 226 of the Spanish Securities Market Law. This document contains statements that Repsol believes constitute forward-looking statements which may
Slide 3: Index
Index 01. Key Messages 02. Operational Highlights 03. Financial Results 04. Outlook 2020 05. Conclusions 3
Slide 4: Focus on value and cash generation
Focus on value and cash generation Key Messages • Operating Cash Flow (OCF) growth +8% year-on-year Cash Flow growth in • €5.8 Bn OCF more than covered capex, interests and shareholder challenging macro scenario remuneration (including full buy-back of the scrip) • +5% dividend growth in 2019 Improv
Slide 5: Challenging macro environment
Challenging macro environment Key Messages Brent Price (USD/Bbl) Refining Margin Indicator (USD/Bbl) 71.3 6.7 6.2 68.8 5.5 5.6 63.1 64.2 62.0 5.0 4Q18 3Q19 4Q19 FY18 FY19 4Q18 3Q19 4Q19 FY18 FY19 Henry Hub (USD/MBtu) Exchange rate (USD/€) 3.6 1.18 3.1 2.5 2.6 1.14 1.11 1.11 1.12 2.2 4Q18 3Q19 4Q19 F
Slide 6: Net zero emissions by 2050
Net zero emissions by 2050 Key Messages 1st oil & gas company: Sustainability embedded in decision making ✓ to support the Kyoto Protocol • Management and Employees remuneration ✓ to align with the Paris Agreement linked to delivery of Sustainability targets ✓ to assume net zero emissions ambition b
Slide 7: Implications for our businesses
Implications for our businesses Key Messages Upstream Downstream • Sustained cash generator and portfolio • Refining: improvement • 1st quartile of returns • Value over volume strategy • 25% direct emissions reduction in 2025 • Oil & gas relevant in future energy matrix • Double biofuel production f
Slide 8: Upstream production focused on value over volume
Upstream production focused on value over volume Operational Highlights Kboed +2 +7 715 -8 -7 709 Europa, Africa North & Brazil Latam/ America Asia-Russia Caribbean FY18 FY19 • New barrels from short-cycle projects and portfolio management: ✓ Start-up of Angelin (T&T) and Buckskin (GoM) ✓ Higher vol
Slide 9: Improving Upstream position through portfolio management
Improving Upstream position through portfolio management Operational Highlights Alaska Norway ▪ Alignment of ownership interests with Oil Search in Pikka ▪ Acquisition of a stake in the Mikkel producing field, following the acquisition of Visund in 2018 Gulf of Mexico Papua New Guinea ▪ Exchange of
Slide 10: Successful exploration activity focused on core areas
Successful exploration activity focused on core areas Operational Highlights Alaska (Pikka) Norway ▪ Appraisal campaign extended the Pikka discovery farther south ▪ Telesto well discovery, in the same block of the ▪ Two wells currently being drilled Visund field Gulf of Mexico Indonesia (Sakakemang)
Slide 11: Challenging Refining and Chemicals
Challenging Refining and Chemicals Operational Highlights Refining Chemicals Commercial businesses • Refining margin indicator • Lower international • Solid Marketing and ✓ 5.6 $/bbl in 4Q19 margins compared to 2018 Lubricants ✓ 5 $/bbl in FY19 • Higher uptime in our • Waylet: 1.4 Million users • Pr
Slide 12: Progressing in Low Carbon targets
Progressing in Low Carbon targets Operational Highlights Viesgo: ~2,350 MW installed capacity ~700 MW Hydro Installed ~1.650 MW CCGT capacity ~3 GW 600 MW Cogeneration Generation WindFloat Atlantic: 5 MW Delta: 335 MW Project pipeline PI: 255 MW ~2 GW Under development Sigma: 204 MW Valdesolar: 264
Slide 13: Cash Flow bridge to 2020
Cash Flow bridge to 2020 Operational highlights 2019 (B€) +0.3 +0.52 - +0.132 +0.1 +0.11 +1.1 0.1 6.5 0.3 0.2 0.3 0.6 0.4 4.6 UPSTREAM DOWNSTREAM CORPORATION +1 B€ + 0.8 B€ + 0.1 B€ 2017 CFFO1 New RISE (efficiency & International Profitability Expand & Low Corporate & 2020 CFFO @50 $/bbl production
Slide 14: 4Q19 & FY19 results
4Q19 & FY19 results Financial Results Results (€ Million) Q3 2019 Q4 2018 Q4 2019 FY 2018 FY 2019 Upstream 218 310 186 1,325 1,050 Downstream 372 485 369 1,583 1,456 Corporate and Others -68 -163 -150 -556 -464 Adjusted Net Income 522 632 405 2,352 2,042 Net Income 333 170 -5,282 2,341 -3,816 Econom
Slide 15: Guidance
Guidance Outlook 2020 FY2020 GUIDANCE Dividend 1 €/share • 5% dividend increase Shareholder remuneration Scrip buy-back 100 % • Full scrip buy-back Capital reduction 5% • Subject to the approval of the AGM Production ~ 700 kboed • Value over volume. Subject to Libya. Operating metrics Ref. margin in
Slide 16: IMO: Opportunities to maximize our refining premium
IMO: Opportunities to maximize our refining premium Outlook 2020 Gasoil 0.1%S 0.5%S Bunker fuel Heavy Fuel Oil 1.0%S Heavy Fuel Oil 3.5%S 30 • Early signs of IMO with HSFO spreads collapsing in the second 20 half of the year 10 • VLSFO price reached parity with 0 gasoil, meaning there is not -10 eno
Slide 17: Confident on delivering improved performance
Confident on delivering improved performance Conclusions • Strong operating cash flow growth in challenging scenario 2019 delivery • Increased shareholder remuneration • Commitment to long-term sustainability Net zero emissions • Recognition by investment community by 2050 • Significant implications
Slide 18: Repsol 4Q and full year 2019 results
WEBCAST – CONFERENCE CALL Repsol 4Q and full year 2019 results 18