Omv Petrom Sa · BVB:SNP
Omv Petrom Sa — Shareholder Meeting (April 2020)
12 slides from Omv Petrom Sa's shareholder meeting presentation, Apr 27, 2020
Slide 1: General Meeting of Shareholders: 2019 Overview and response to COVID-19
General Meeting of Shareholders OMV Petrom 2019 Overview and response to COVID-19 Christina Verchere, CEO and President of the Executive Board April 27, 2020 OMV Upstream
Slide 2: Agenda
Agenda Highlights 2019 Strategy Execution Petrom’s response to COVID-19
Slide 3: Romanian environment
Romanian environment 2019 Macroeconomic environment Provisional GDP1 +4.1% CPI annual inflation +4.0% Demand in Romania Fuels2 +5.8% Fiscal framework Gas3 -6% Power4 -1% • Government Emergency Ordinance no. 1/2020: o 2% fee on gas and power turnover eliminated starting Jan 2020 o faster return to a
Slide 4: Group Strategic and Financial performance 2019
Group Strategic and Financial performance 2019 4.6 bn RON Clean CCS Operating Result 6.8 bn RON Operating Cash Flow Strategic projects • Black Sea: o Regional expansion into exploration offshore Bulgaria 13.8 % Clean CCS ROACE o Changes to the Offshore Law are needed in order to move the Neptun Deep
Slide 5: Cost efficiency and operational excellence
Cost efficiency and operational excellence Total operating cost1 (RON mn) -169 Key drivers 2019 vs. 2017 2017 2018 2019 • Upstream: efficiency programs implemented led to cost Upstream Downstream Gas Downstream Oil Corporate & Other base reduction by -7% • Corporate Costs: -6% • Headcount: further d
Slide 6: Focused on safeguarding our employees and the environment
Focused on safeguarding our employees and the environment Our HSSE vision: “ZERO Harm – NO Losses” • LTIR1: 0.31 • Upstream: Assets Moesia, Petromar and Kazakhstan recorded ZERO LTI in 2019; Asset Moesia achieved 10 mn man-hours without LTI • Downstream Oil: 7 mn man-hours without LTI at the end of
Slide 7: Upstream KPIs
Upstream KPIs Hydrocarbon production (kboe/d) -5% -5% 179 174 168 160 152 83 80 Oil and NGL 75 73 72 Gas 95 95 93 86 80 2015 2016 2017 2018 2019 Total Upstream production -5%, due to: • Natural decline • Surface works OPEX1(USD/boe) • Marginal fields divestments -3% -3% • Contribution from new wells
Slide 8: Downstream Oil KPIs
Downstream Oil KPIs Refining margin (USD/bbl) 8.71 -26% -26% 7.75 6.98 6.28 4.67 2015 2016 2017 2018 2019 Refining margin -26% yoy, due to lower Retail sales volumes (mn t) products spreads +4% +4% 2.85 Retail sales up 4% yoy, driven by 2.53 2.56 2.70 2.74 higher demand Refined product sales +10% fo
Slide 9: Downstream Gas KPIs
Downstream Gas KPIs Gas sales volumes (TWh) +16% 51.39 50.36 51.40 54.84 47.32 2015 2016 2017 2018 2019 Higher gas sales volumes, built on third party acquisitions Net electrical output (TWh) Gas sales to regulated market: 12.51 TWh -11% Lower net electrical output 3.82 3.40 2.65 2.93 2.71 Power sal
Slide 10: Progress towards achieving our strategic objectives
Progress towards achieving our strategic objectives <11 USD/boe stabilized production cost despite production decline Neptun Deep assessment of commercial & economic viability continued Upstream 28 marginal fields divested, 40 are being transferred 70% automated wells and modernized / automa
Slide 11: OMV Petrom's response to COVID-19 and the new market environment
OMV Petrom’s response to COVID-19 and the new market environment Proven track record in managing economic crises Prepared to cope Integrated business model expected to support financial results with challenges Resilience in highly volatile market, supported by business optimization and strict
Slide 12: OMV Upstream
= OMV Petrom The energy for a better life.