Omv Ag · VIE:OMV
Omv — OMV Aktiengesellschaft — Q2 2021 Earnings Presentation
33 slides from Omv's earnings presentation, Jul 28, 2021
Slide 1: OMV Q2 2021 Results Conference Call
OMV Q2 2021 Results Conference Call July 28, 2021 OMV Aktiengesellschaft Rainer Seele Chairman of the Executive Board and CEO The spoken word applies 1/33 | OMV Group
Slide 2: OMV Q2 2021 Results Conference Call, July 28, 2021 2/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 2/33 | OMV Group
Slide 3: Introduction and Q2 2021 overview
OMV Q2 2021 Results Conference Call, July 28, 2021 Ladies and gentlemen, good morning and thank you for joining us. The second quarter of 2021 showed a broad macro recovery, although the COVID-19 pandemic still impacted demand in certain areas. Oil and natural gas prices rallied, and European polyol
Slide 4: OMV Q2 2021 Results Conference Call, July 28, 2021 4/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 4/33 | OMV Group
Slide 5: Macro environment – improved crude oil and gas prices, record high polyolefin margins
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 3: Macro environment – improved crude oil and gas prices, record high polyolefin margins The second quarter of 2021 was the fourth consecutive quarter of sequential Brent price improvement. At 69 Dollars per barrel, Brent was 13 percent higher
Slide 6: OMV Q2 2021 Results Conference Call, July 28, 2021 6/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 6/33 | OMV Group
Slide 7: Key messages
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 4: Key messages At 1.3 billion Euros, our clean CCS Operating Result reached an all-time high. It was almost eight times higher than in the same quarter of last year and almost 50 percent higher than in the first quarter of 2021. This was attr
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OMV Q2 2021 Results Conference Call, July 28, 2021 Page left intentionally blank 8/33 | OMV Group
Slide 9: Borealis stake in Renasci and recycling targets
OMV Q2 2021 Results Conference Call, July 28, 2021 Borealis also acquired a 10 percent stake in Renasci N.V., a provider of innovative recycling solutions, and signed a supply agreement, securing 20 thousand tons of chemically recycled output material per year. We aim to make recycled polyolefins a
Slide 10: OMV Q2 2021 Results Conference Call, July 28, 2021 10/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 10/33 | OMV Group
Slide 11: Clean CCS Operating Result – strong market environment and improved operational performance
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 5: Clean CCS Operating Result – strong market environment and improved operational performance Let’s now turn to our financial performance in the second quarter of 2021. Our clean CCS Operating Result rose sharply by 1.2 billion Euros, compare
Slide 12: OMV Q2 2021 Results Conference Call, July 28, 2021 12/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 12/33 | OMV Group
Slide 13: Exploration & Production – higher realized oil and gas prices, increased sales volumes
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 6: Exploration & Production – higher realized oil and gas prices, increased sales volumes Let me now discuss the performance of our business segments. The Clean Operating Result of Exploration & Production rose considerably to 498 million Euro
Slide 14: OMV Q2 2021 Results Conference Call, July 28, 2021 14/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 14/33 | OMV Group
Slide 15: Refining & Marketing – weaker gas business, partially offset by stronger retail
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 7: Refining & Marketing – weaker gas business, partially offset by stronger retail and positive AGT contribution The clean CCS Operating Result in Refining & Marketing decreased year-on-year by 51 million to 181 million Euros, primarily due to
Slide 16: OMV Q2 2021 Results Conference Call, July 28, 2021 16/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 xx 16/33 | OMV Group
Slide 17: Chemicals & Materials – strong market environment and positive inventory valuation effects
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 8: Chemicals & Materials – strong market environment and positive inventory valuation effects Ladies and gentlemen, the clean Operating Result of Chemicals & Materials increased remarkably: from 78 to 647 million Euros. This outstanding develo
Slide 18: OMV Q2 2021 Results Conference Call, July 28, 2021 18/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 18/33 | OMV Group
Slide 19: Record cash flow from operating activities excluding net working capital effects
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 9: Record cash flow from operating activities excluding net working capital effects of EUR 3.4 bn in H1/21 Turning to cash flow, our second-quarter operating cash flow ─ excluding net working capital effects ─ reached 1.7 billion Euros for the
Slide 20: OMV Q2 2021 Results Conference Call, July 28, 2021 20/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 20/33 | OMV Group
Slide 21: Deleveraging well on track
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 10: Deleveraging well on track Net debt excluding leases decreased by 722 million Euros to 7.1 billion Euros. Consequently, our gearing ratio excluding leases – defined as net debt excluding leases to equity – decreased by another 3 percentage
Slide 22: OMV Q2 2021 Results Conference Call, July 28, 2021 22/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 22/33 | OMV Group
Slide 23: Excellent progress on the EUR 2 bn divestment program
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 11: Excellent progress on the EUR 2 bn divestment program Let me now give you an update on our divestment program. Since the announcement of the program last year in March, we have signed agreements resulting in a deleveraging effect of around
Slide 24: OMV Q2 2021 Results Conference Call, July 28, 2021 24/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 24/33 | OMV Group
Slide 25: Updated outlook 2021
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 12: Updated outlook 2021 Let me conclude with an update on our outlook for this year. Based on the developments we have seen so far, we have updated our oil price assumption for 2021 and now expect an average Brent price in the range of 65 to
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OMV Q2 2021 Results Conference Call, July 28, 2021 Page left intentionally blank 26/33 | OMV Group
Slide 27: Outlook: polyolefin market and tax rate
OMV Q2 2021 Results Conference Call, July 28, 2021 The polyolefin market showed very strong performance in the second quarter, but prices are expected to come down, with supply beginning to normalize after maintenance shutdowns and the easing of logistics constraints. With expectations of a typical
Slide 28: OMV Q2 2021 Results Conference Call, July 28, 2021 28/33 | OMV Group
OMV Q2 2021 Results Conference Call, July 28, 2021 28/33 | OMV Group
Slide 29: 2015 – H1 2021 Transformation
OMV Q2 2021 Results Conference Call, July 28, 2021 Slide 13: 2015 – H1 2021 Transformation Ladies and gentlemen, as this is my last presentation to you as CEO of OMV, I would like to spend a few minutes talking about my journey over the last six years. Looking back to the beginning, I can see that O
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OMV Q2 2021 Results Conference Call, July 28, 2021 Page left intentionally blank 30/33 | OMV Group
Slide 31: Transformation: cost structure, emissions and chemicals
OMV Q2 2021 Results Conference Call, July 28, 2021 We made fundamental changes to our cost structure. We reduced our capital spending from 3.6 billion Euros at the end of 2014 to below 2 billion Euros, without impacting the operations. We conducted several efficiency programs totaling 650 million Eu
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OMV Q2 2021 Results Conference Call, July 28, 2021 Page left intentionally blank 32/33 | OMV Group
Slide 33: Dividend track record and investor proposition
OMV Q2 2021 Results Conference Call, July 28, 2021 Our track record on dividends is unbroken for five years. In this period, we have increased dividends at an average rate of 13 percent per year. We were one of the few companies in the energy industry that did not cut dividends in 2020. And this yea
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