Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — PGNiG Group — Q3 2021 Earnings Presentation
18 slides from Orlen Spolka Akcyjna's earnings presentation, Nov 25, 2021
Slide 1: PGNiG Group Q3 2021 Results
PGNiG Group Q3 2021 Results November 25th 2021
Slide 2: Table of contents
Table of contents 2 1. Key events 2. Performance drivers 3. Financial highlights – Q3 2021 4. Segments – overview: Exploration and Production Trade and Storage Distribution Generation 5. Appendices
Slide 3: Key events in Q3 2021
Key events in Q3 2021 3 07 President of URE’s decision on the Retail Tariff of PGNiG Obrót Detaliczny – gas fuel July price up by 12.4% for all tariff groups from August 1st 2021 Execution of agreements setting out the key terms and conditions of annexes increasing the volumes of LNG deliveries cont
Slide 4: External and market factors
External and market factors USD/PLN exchange rate up +2% yoy USD/PLN and EUR/PLN exchange rates PLN Q3’20 Q3’21 °C 20,0 Temperatures* Q3’2 0 18,35 4 Q3’21 17,63 in Q3 2021, to PLN 3.87. 4,8 Quarter ly average USD/PLN exchange rate +3% (yoy) 4,57 -0,72 C (yoy) EUR/PLN exchange rate up 4,44 15,0 4,4 +
Slide 5: Gas markets
Gas markets TTF and GPL gas prices (Month- Ahead contract) in PLN in Q3 2021: TTF and GPL gas prices (Month-Ahead contract) PLN/MW h Q3’2020 5 Q3’2021 July: +6x and +6x yoy, 400 TTF Month-Ahead contract price +507% (yoy) +503% (yoy) August: +5x and +5x yoy, 350 Average TTF Month-Ahead for quarter +9
Slide 6: Financial highlights for Q3 2021
Financial highlights for Q3 2021 [PLNm] Revenue Q3 2020 6,392 Q3 2021 12,509 D% 96% Exploration and Production 6 Revenue from sales of gas to PLN +2,393m (+408%) yoy, with revenue from sales of crude oil and condensate to PLN +677m (+90%) yoy. Operating expenses (excl. D&A) -5,059 -10,312 104% Rever
Slide 7: Segment - Exploration and Production
Segment - Exploration and Production Revenue and EBITDA growth, with a year-on-year increase in oil prices and significantly higher gas prices (Day-Ahead Market on POLPX). [PLNm] Revenue Q3 2020 959 Q3 2021 3,241 D% 238% 7 Operating expenses (excl. D&A) -481 -571 19% Cost of dry wells and seismic su
Slide 8: Segment - Trade and Storage
Segment - Trade and Storage Segment’s performance driven by higher gas sales volumes and higher unit gas costs. [PLNm] Q3 2020 Q3 2021 D% Comments 8 Revenue from sales of gas (including the effect of hedging transactions) up by Revenue 4,642 10,463 125% PLN 5.62bn (+143%) yoy (to PLN 9.55bn in Q3 20
Slide 9: Segment - Distribution
Segment - Distribution Segment’s performance driven by lower temperatures, higher gas distribution volumes and a higher distribution tariff. [PLNm] Q3 2020 Q3 2021 D% 9 Revenue 906 978 8% Operating expenses (excl. D&A) -543 -434 -20% Comments EBITDA 363 544 50% Gas distribution volumes up +7% yoy to
Slide 10: Generation
Generation Segment’s performance driven by higher heat sales volumes and higher tariff for heat generation and transmission. [PLNm] Q3 2020 Q3 2021 D% 10 Revenue 393 494 26% Operating expenses (excl. D&A) -358 -515 44% Comments Revenue from sales of electricity generated from the segment’s own sourc
Slide 11: Contact details
Contact details Marcin Piechota Head of the Investor Relations Division Anna Galińska Investor Relations Specialist 11 Phone: +48 22 106 43 22 Phone: +48 22 106 41 09 Mobile: +48 885 889 890 Mobile: +48 723 514 086 Email: marcin.piechota@pgnig.pl Email: anna.galinska@pgnig.pl Piotr Gałek Aleksander
Slide 12: Appendices
Appendices 12 1. Gas sales and imports structure 2. Operating expenses 3. Debt and sources of funding 4. CAPEX, statement of financial position, statement of cash flows 5. Production and sales volumes
Slide 13: Financial highlights for 9M 2021
Financial highlights for 9M 2021 [PLNm] Revenue 9M 2020 27,430 9M 2021 37,494 D% 37% Exploration and Production 13 Revenue from sales of gas up PLN +3,222m (+204%) yoy, with revenue from sales of crude oil and condensate up PLN +714m (+68%) yoy. Operating expenses (excl. D&A) -16,745 -30,102 80% Rev
Slide 14: Operating expenses in Q3 2021 vs Q3 2020
Operating expenses in Q3 2021 vs Q3 2020 [PLNm] Cost of gas Q3 2020 -3,326 Q3 2021 -7,242 D% 118% Comments: 14 Increase in cost of gas sold of +184% yoy (to PLN -7,242m) with a +9% yoy Fuels for heat and power generation -100 -104 4% increase in gas volumes sold outside the Group. Other raw material
Slide 15: Gas sales and imports structure
Gas sales and imports structure Higher LNG imports and lower gas imports from sources east, Imports of natural gas to Poland Q3 2021 Gas sales outside the PGNiG Group by company 15 west and south of Poland. In Q3 [mcm] Q3 2020 Q3 2021 D% LNG; 24% 2021, eight gas carriers unloaded at the Świnoujście
Slide 16: Debt and sources of funding
Debt and sources of funding Sources of funding (as at September 30th 2021) 16 PLNm used available Dividend per share for the financial year 2,500 PLN 0 0.30 0.2 0.2 0.21 0.19 0.18 0.18 0.20 0.17 0.15 0.15 0.12 0.13 1,118 0.09 0.09 7,500 5,000 0.08 878 0.10 Revolving cr edit facility (June 2024) Dome
Slide 17: CAPEX, statement of financial position and statement of cash flows
CAPEX, statement of financial position and statement of cash flows CAPEX incurred as at September 30th 2021* PLNm Non-current Current 17 Group’s statement of financial position (as at September 30th 2021) Equity PLNbn E&P 1.40 T&S 0.05 Distribution 2.12 31,864 Generation 0.92 44,708 Total 4.50 Conso
Slide 18: Production and sales volumes
Production and sales volumes NATURAL GAS PRODUCTION BY THE PGNIG GROUP [mcm] HIGH-METHANE GAS (E) including in Poland including in Norway NITROGEN-RICH GAS (Ls/Lw as E equiv.) Q3 2021 582 326 257 669 Q2 2021 487 318 168 604 Q1 2021 539 317 222 706 Q4 2020 488 328 159 731 Q3 2020 441 330 112 673 Q2 2