Orlen Spolka Akcyjna · GPW:PKN
Orlen Spolka Akcyjna — Grupa LOTOS — Q2 2021 Earnings Presentation
34 slides from Orlen Spolka Akcyjna's earnings presentation, Aug 12, 2021
Slide 1: Consolidated financial results for the HY and Q2 2021
Consolidated financial results for the HY and Q2 2021 August 12th 2021
Slide 2: Agenda
Consolidated financial results for the HY and Q2 2021 Key highlights ….………………………………………………... 2 External environment .……………………………………..…..... 6 Exploration & production….…………………..…………….… 11 Refining & marketing ….………………………………………… 18 Consolidated financial results ……………………………..… 24 Appendices ………………………
Slide 3: Key highlights: HY and Q2 2021 performance
Key highlights HY and Q2 2021 performance ● LIFO-based EBITDA for 6M 2021 (1) at the historically high level of PLN 1.6bn, confirming high effectiveness in adapting to demanding market conditions and flexibility in managing production flows within the refinining area: o Exploration & Production LIFO
Slide 4: Key highlights: Half year of 2021
Key highlights Half year of 2021 LIFO EBITDA(1) Refining & marketing – crude oil throughput in Gdańsk m PLN +121% k tons 1 599 1 415 5 360 5 139 4 603 (3) 1 207 1 034 723 (2) 505 refining & marketing 384 383 exploration & production 231 6M 2019 6M 2020 6M 2021 6M 2019 6M 2020 6M 2021 Operating cash
Slide 5: Key highlights: Q2 2021
Key highlights Q2 2021 LIFO EBITDA(1) Refining & marketing – crude oil throughput in Gdańsk m PLN +60% k tons +3% 984 2 541 2 628 615 (3) 1 975 762 (2) 445 refining & marketing 52 168 215 exploration & production 46 15 Q2 2020 Q1 2021 Q2 2021 Q2 2020 Q1 2021 Q2 2021 Net debt/LIFO EBITDA Exploration
Slide 6: Agenda
Consolidated financial results for the HY and Q2 2021 Key highlights ….…………………………………………………... Podsumowanie ….……………………………………………........ 32 External Otoczenieenvironment .…………………………..…........ 66 makroekonomiczne.……………….…….. Exploration & production….…………………..…………….… Segment wydobywczy ….…………………..…………
Slide 7: Global oil demand and air traffic during the COVID-19 pandemic
External environment Global oil demand and air traffic during the COVID-19 pandemic Global crude oil consumption (1) m bbl/d 101 101 100 99 99 98 Sharp drop in oil consumption in 2020 as a 95 consequence of COVID-19 outbreak. 93 94 91 93 Gradual recovery in demand seen from Q3 2020 on an upturn in g
Slide 8: Macroeconomic environment vs strategic assumptions
External environment Macroeconomic environment (1) vs strategic assumptions (2) Brent DTD Product crack spreads USD/bbl USD/ton -3% Hydrocarbon prices in an increasing trend since 179 67 65 the beginning of the year, especially for natural -36% gas, quotations of which approached 80 USD/boe 115 in J
Slide 9: FX rate, GDP growth, domestic fuel market
External environment FX rate, GDP growth, domestic fuel market FX USD/PLN rate (1) Diesel consumption (3) m m3 4,09 5.6 5.6 3,92 5.2 5.4 5.3 3,81 3,88 3,87 5.1 3,80 4.8 4.8 3,78 3,78 3,76 3.9 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Slide 10: Crude oil, natural gas and product cracks
External environment Crude oil, natural gas and product cracks Crude oil (1) and nat gas prices (2) Key product crack spreads (1) USD USD/t 157 154 121 115 69 69 112 97 96 90 62 63 61 116 66 69 60 83 34 51 50 47 34 44 30 30 43 38 -63 30 30 -85 -81 23 23 -121 19 18 -137 -139 -154 -137 15 -251 9 Q2 19
Slide 11: Agenda
Consolidated financial results for the HY and Q2 2021 Podsumowanie Key highlights ….…………………………………………………... ….…………………………………………..….... 32 Otoczenie External environment makroekonomiczne.…………………………… .……………………………………..…..... 66 Segment wydobywczy Exploration & production….…………………..…….… ….…………………..…….…...
Slide 12: Exploration & Production – key highlights
Exploration & Production Exploration & Production – key highlights ● Clean EBITDA for H1 2021 at PLN 383m, i.e. higher by 66% yoy, thanks to significantly higher crude oil and natural gas prices, despite the decrease in production volumes by 14% yoy, to the level of 19 kboe/d ● In Q2 2021 clean EBIT
Slide 13: Producing assets in Q2 2021
Exploration & Production Producing assets in Q2 2021 B8 Sleipner Utgard Baltic Sea North Sea North Sea Reserves(1) 32.7 m boe Reserves(1) 10,3 m boe Reserves(1) 1.3 m boe Production(2) 3.5 kboe/d Production(2) 8.1 kboe/d Production(2) 2.9 kboe/d B3 Heimdal AB Geonafta Baltic Sea North Sea Lithuania
Slide 14: Overall production figures
Exploration & Production Overall production figures Average daily production in quarters Overall production by country boe/d m boe -25% -7% 2.28 20 817 0.05 19 374 Norway 18 578 0.52 1.72 Poland 1.62 0.05 Lithuania 0.05 9 545 0.45 0.47 9 867 9 764 1.72 1.11 1.22 11 273 8 814 9 507 Q2 2020 Q1 2021 Q2
Slide 15: Total recoverable reserves vs 31 December 2020
Exploration & Production Total recoverable reserves in comparison to 31st of December 2020 Reserves 2P m boe 74.8 -1.5 Lithuania 2.5 -1.0 72.2 -0.1 2.4 Poland 46.0 45.0 Norway 26.3 24.8 2020-12-31 Production Norway Production Poland Production Lithuania 2021-06-30 15 Consolidated financial results H
Slide 16: Quarterly operating results of the segment
Exploration & Production Quarterly operating results of the segment Q2 2020 Q1 2021 Q2 2021 m PLN +28% 63 -219 215 168 371 107 61 46 439 83 -475 (1) (1) EBIT Q2 Depreciation One offs Clean EBIT Q1 2021 Depreciation EBITDA EBIT Q2 2021 Depreciation One offs Clean 2020 Q2 2020 EBITDA Q1 2021 Q2 2021 E
Slide 17: Half year E&P EBITDA evolution
Exploration & Production Half year exploration & production EBITDA evolution 6M 2020 6M 2021 +66% m PLN 478 124 219 383 231 735 169 -673 322 (1) EBIT 6M 2020 Depreciation One offs 6M 2020 Clean EBITDA EBIT 6M 2021 Depreciation One offs 6M 2021 Clean EBITDA 6M 2020 6M 2021 39 18 0.4 353 105 735 135 -
Slide 18: Agenda
Consolidated financial results for the HY and Q2 2021 Podsumowanie Key highlights ….…………………………………………………... ….……………………………………………........ 32 Otoczenie External environment makroekonomiczne.…………………………….. .……………………………………..…..... 6 Segment wydobywczy Exploration & production….…………………..…………….… ….…………………..…
Slide 19: Refining & Marketing – key highlights
Refining & Marketing Refining & Marketing – key highlights ● Clean EBITDA LIFO (1) for HY 2021 at the level of PLN 1,207m (compared to PLN 505m in HY 2020), thanks to flexible management of the structure of yields and sales directions as well as the use of market opportunities in trade (gasoline, bi
Slide 20: Refining output structure
Refining & Marketing Refining output structure k tons % share in total 2 758 2 772 2 708 2 418 2 802 14% 13% 12% 14% 17% 6% 6% 6% 4% 4% 56% 54% 56% 61% 59% 10% 10% 8% 9% 8% 3% 3% 2% 2% 3% 12% 12% 14% 12% 11% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Gasoline Naphtha Middle distilates Heavy Products Pe
Slide 21: Half year R&M clean EBITDA evolution
Refining & Marketing Half year refining & marketing clean EBITDA evolution 6M 2020 6M 2021 1 813 m PLN 1 418 395 -639 1 207 33 +139% 505 52 96 Retail 102 Retail 997 380 -543 -922 (1) (2) EBIT 6M2020 Depreciation EBITDA LIFO effect One offs Clean EBIT 6M 2021 Depreciation EBITDA LIFO effect One offs
Slide 22: Quarterly operating results of the segment
Refining & Marketing Quarterly operating results of the segment Q2 2020 Q1 2021 Q2 2021 +71% m PLN 1 055 -302 410 762 9 445 -336 24 1 055 -820 757 425 15 Retail Retail 49 29 74 15 (1) (2) EBITDA LIFO effect One offs Clean LIFO Retail EBITDA LIFO effect One offs Clean LIFO EBITDA LIFO effect One offs
Slide 23: Model refining margin
Refining & Marketing Model refining margin(1) USD/bbl Model refining margin Revenues from products of 94% of throughput, including 23% gasoline, 63% diesel and 8% heavy fuel oil. Costs: 100% of processed crude and natural gas. Own consumption -37% HSFO 6% Gasoline 10.1 8% 9.6 23% 8.1 5.8 5.4 4.5 3.4
Slide 24: Agenda
Consolidated financial results for the HY and Q2 2021 Podsumowanie ….……..………………………………………….. 32 Key highlights ….…………………………………………………... Otoczenie makroekonomiczne.……………………………. External environment .……………………………………..…..... 66 Segment wydobywczy Exploration ….…………………..…………………. 1111 & production….…………………
Slide 25: Decomposition of half year cumulative operating results
Consolidated financial results Decomposition of half year cumulative operating results 6M 2020 6M 2021 m PLN +121% 1 599 -639 518 -186 723 1 906 1 412 548 786 -1 608 -1 388 997 (1) (2) EBIT 6M 2020 LIFO effect One offs Depreciation Clean EBITDA Net loss EBIT 6M 2021 LIFO effect One offs Depreciation
Slide 26: Quarterly financial results
Consolidated financial results Quarterly financial results Q2 2020 Q2 2021 m PLN -302 1 058 984 -210 255 1 242 52 410 -381 273 -249 -76 (1) (2) EBIT Q2 2020 LIFO effect One offs Depreciation Clean EBITDA Net loss EBIT Q2 2021 LIFO effect One offs Depreciation Clean EBITDA Net profit Q2 2020 LIFO Q2
Slide 27: Operating cash flows vs CAPEX
Consolidated financial results Operating cash flows vs CAPEX Quarterly CAPEX HY 2021 m PLN 1 836 Exploration Refining & Total CAPEX & Production Retail Marketing HY 2021 1 445 70 1 139 46 76 193 198 70 461 95 75 108 90 90 155 156 46 69 119 106 -55 135 18 -1 031 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 202
Slide 28: Debt
Consolidated financial results Debt Net debt(1) Gearing ratio(2) Net debt / EBITDA LIFO (3) bn PLN 3.8 3.9 3.8 23% 1.4 2.9 10% 17% 1.0 14% 0.9 1.3 0.8 1.9 0.4 1.8 11% 10% 0.6 1.2 1.3 1.8 1.6 2019 2020 30 June 2021 2019 2020 30 June 2021 2019 2020 30 June 2021 impact of lease liabilities impact of le
Slide 29: Agenda
Consolidated financial results for the HY and Q2 2021 Podsumowanie ….………………………………………………... 32 Key highlights ….…………………………………………………... Otoczenie makroekonomiczne.…………………………… External environment .……………………………………..…..... 66 Segment wydobywczy Exploration ….…………………..………………... 1111 & production….………………….
Slide 30: Macroeconomic environment and operational highlights
Appendices Macroeconomic environment(1) and operational highlights 2016 2017 2018 2019 2020 6M 2019 6M 2020 6M 2021 Brent Dtd (USD/bbl) 43.58 54.15 71.18 64.21 41.96 65.86 40.23 64.97 Brent Dtd vs Ural Rtdm spread (USD/bbl) 2.45 1.40 1.47 0.89 0.58 0.41 1.22 1.72 Natural gas UK NBP (USD/boe) 25.84 3
Slide 31: Financial performance
Appendices Financial performance (PLNm) 2016 2017 2018 2019 2020 6M 2019 6M 2020 6M 2021 Revenue 20,931.1 24,185.6 30,121.7 29,493.3 20,908.6 14,403.0 10,341.3 13,278.3 Cost of sales 17,215.7 20,194.1 25,619.0 25,649.1 19,441.7 12,508.9 10,249.8 10,603.1 Gross profit 3,715.4 3,991.5 4,502.7 3,844.2
Slide 32: Financial position
Appendices Financial position (PLNm) 2016 2017 2018 2019 2020 6M 2019 6M 2020 6M 2021 Assets 19,326.3 21,171.2 22,223.9 23,672.1 21,856.4 23,899.8 21,033.8 23,940.4 Non-current assets 12,330.7 12,462.1 13,078.0 14,236.2 13,960.1 13,994.9 13,500.0 14,178.0 Current assets, including: 6,995.1 8,709.1 9
Slide 33: Cash flows
Appendices Cash flows (PLNm) 2016 2017 2018 2019 2020 6M 2019 6M 2020 6M 2021 Net cash from operating activities, including: 2,653.9 3,126.5 2,327.5 2,130.2 2,869.9 738.1 1,785.8 805.2 Net profit/(loss) 1,015.2 1,671.8 1,587.4 1,152.9 (1,146.2) 673.0 (1,388.0) 1,411.6 Depreciation and amortisation 1
Slide 34: Grupa LOTOS S.A. Investor Relations
Grupa LOTOS S.A. Investor Relations tel. +48 58 308 73 93 fax +48 58 346 22 35 e-mail ir@grupalotos.pl @GrupaLOTOS