Orlen Spolka Akcyjna · GPW:PKN

Orlen Spolka Akcyjna — Grupa LOTOS — Q1 2012 Earnings Presentation

26 slides from Orlen Spolka Akcyjna's earnings presentation, May 8, 2012

  1. Slide 1: Consolidated Financial Results of the LOTOS Group Q1 2012 (IFRS)

    Consolidated Financial Results of the LOTOS Group Q1 2012 (IFRS) Management Board of Grupa LOTOS 8 May 2012

  2. Slide 2: Key highlights

    Grupa LOTOS S.A. 1 Key highlights 2 Market Conditions 3 Market Conditions Upstream 4 Upstream Downstream 5 Downstream Overall financial results Management Board 2/26

  3. Slide 3: Key Highlights – General Highlights

    Grupa LOTOS S.A. KEY HIGHLIGHTS GENERAL HIGHLIGHTS  Market share increase :  Retail – up to 8.2% ( in terms of volumes as of the end of February)  Wholesale – up to 35.1%  Further improvement of the product slate comparing with Q1 2011 – ROSE unit fully operational  Record high production and s

  4. Slide 4: Key Highlights – Q1'12 Overall Figures

    Grupa LOTOS S.A. KEY HIGHLIGHTS Q1’12 OVERALL FIGURES  Crude oil production amounted to 7,176 bbl/d (84.1k tonnes)  Crude oil throughput amounted to 2,273k tonnes  Consolidated sales at the level of 2,330k tonnes  Normalised EBITDA at PLN 563m higher by PLN 29m yoy (excluding one off effects: 20

  5. Slide 5: Market Conditions

    Grupa LOTOS S.A. 1 Key highlights 2 Market Conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 5/26

  6. Slide 6: Market Conditions – Refining Margin, Crude Oil Prices

    Grupa LOTOS S.A. MARKET CONDITIONS KEY FACTORS Refining margin Crude Oil Prices  Positive impact of increase in Brent/Ural spread in comparison with Q4’11, significantly lower however comparing with Q1’11  Negative impact of decrease in refining margin yoy  Increase in crude oil prices yoy Manage

  7. Slide 7: Market Conditions – LIBOR and FX Rates

    Grupa LOTOS S.A. MARKET CONDITIONS KEY FACTORS LIBOR 3M USD FX rates development  The EUR/USD remained stable qoq, while the USD/PLN rate increased qoq  Downward trend of 3M USD LIBOR rate from beginning of October 2008 Management Board 7/26

  8. Slide 8: Upstream

    Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 8/26

  9. Slide 9: Geographical Coverage of LOTOS' Upstream Operations

    Grupa LOTOS S.A. UPSTREAM GEOGRAPHICAL COVERAGE OF LOTOS’ UPSTREAM OPERATIONS Production (bbl/day) Sales volumes (ths bbl/q) Helsinki Reserves (ths bbl) Oslo Stockholm Vilnius Warsaw Management Board 9/26

  10. Slide 10: Upstream Sales and Production Figures

    Grupa LOTOS S.A. UPSTREAM SALES AND PRODUCTION FIGURES Net Sales (PLN m) +155% Crude oil production (k tonnes) Comments +67%  Dynamic increase in the net sales level deriving from higher crude oil production and higher market prices +155% y/y  Increase of production y/y due to test B8 field produc

  11. Slide 11: Upstream EBIT Decomposition per Different Entities

    Grupa LOTOS S.A. UPSTREAM EBIT DECOMPOSITION PER DIFFERENT ENTITIES EBITDA (PLN m) +251% EBIT (PLN m) Comments +520%  EBIT and EBITDA fairly stable y/y in nominal terms; a strong increase y/y comparing with the normalised level in 1Q 2011 – excluding the effect of the settlement of AB Geonafta acqu

  12. Slide 12: Downstream

    Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 12/26

  13. Slide 13: Downstream Crude Oil Throughput

    Grupa LOTOS S.A. DOWNSTREAM CRUDE OIL THROUGHPUT Crude oil throughput (k tonnes) +2%  Year on year increase of the total throughput by 2%, reaching 2,273k tonnes in 1Q 2012  After very strong throughput during the month of January, lower figures in February and March, responding to worsening marke

  14. Slide 14: Downstream Sales of Products and Goods

    Grupa LOTOS S.A. DOWNSTREAM SALES OF PRODUCTS AND GOODS Quarterly production (k tonnes) Comments  In Q1 2012 total production reached 2,448 thousand tonnes (-1.3% yoy)  In Q1 2012 total sales were at the level of 2,330 thousand tonnes (-6.1% yoy)  The overall product output structure improved, as

  15. Slide 15: Downstream Overall Market Share Evolution

    Grupa LOTOS S.A. DOWNSTREAM OVERALL MARKET SHARE EVOLUTION Wholesale market share  Visibly favorable trend in terms of total market share since June 2010  Gaining market in the beginning of 2012 + 1.6 p.p. – mostly thanks development of the petrol station network  Solid and stable performance in

  16. Slide 16: Downstream Retail Market Share and Network

    Grupa LOTOS S.A. DOWNSTREAM RETAIL MARKET SHARE AND NETWORK Retail market share Petrol station network development  Total number of petrol stations as 31 of Mar 2012 reached 365, lower as of 31.12.2011, but once again improving the structure: less 4 DODO stations, 2 more Optima stations  Already c

  17. Slide 17: Downstream Retail Results

    Grupa LOTOS S.A. DOWNSTREAM RETAIL RESULTS Retail Net Sales (PLN m) Retail EBIT & Sales Volumes +23% -7% * Including LPG  Solid increase in terms of net sales y/y, and a slight drop q/q due to seasonal factors  A recurring negative quarterly EBIT loss due to unfavourable market conditions and pres

  18. Slide 18: Downstream Financial Results – Quarterly View

    Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – QUARTERLY VIEW Downstream Net Sales (PLN m) +20%  Downstream net sales higher by 20% comparing with 1Q 2011  Lower sales comparing to the previous quarter, due to lower overall production and lower volume of diesel sales Management Board 18/26

  19. Slide 19: Downstream Financial Results – EBITDA & EBIT

    Grupa LOTOS S.A. DOWNSTREAM FINANCIAL RESULTS – EBITDA & EBIT Downstream EBITDA (PLN m) Downstream EBIT (PLN m) -2% -12%  Stable level of EBITDA reaching PLN 477m  Slight decrease of the EBIT y/y, due to higher level of amortisaztion (10+ programme completion) Management Board 19/26

  20. Slide 20: Downstream LIFO Effect

    Grupa LOTOS S.A. DOWNSTREAM LIFO EFFECT 1Q 2012 DOWNSTREAM LIFO EFFECT 1Q 2011 DOWNSTREAM LIFO EFFECT * 2012 – effect of the sale of LOTOS Parafiny Management Board 20/26

  21. Slide 21: Overall Financial Results

    Grupa LOTOS S.A. 1 Key highlights 2 Market conditions 3 Upstream 4 Downstream 5 Overall financial results Management Board 21/26

  22. Slide 22: Q1 2012 Result Breakdown

    Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS Q1 2012 RESULT BREAKDOWN Q1 12 Q1 11 Management Board 22/26

  23. Slide 23: Overall Financial Results – LIFO Effect

    Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS LIFO EFFECT 1Q 2012 LIFO EFFECT Comments  LIFO effect lower than in the 1Q 2011 by -45m PLN, and also substantially lower then in 4Q 2011  Normalised LIFO EBITDA (stripping out the one off effects of the settlement of Geonafta 1Q 2011 LIFO EFFECT acqusiti

  24. Slide 24: Balance Sheet Evolution

    Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS BALANCE SHEET EVOLUTION ASSETS Comments  Stable assets evolution comparing with the +334m previous quarter  Increase of inventories by 334m PLN following higher prices of oil and products LIABILITIES Comments +848m  Higher equity by +848m, due to retaine

  25. Slide 25: Financial Debt

    Grupa LOTOS S.A. OVERALL FINANCIAL RESULTS FINANCIAL DEBT 10 + related debt denominated in USD (PLN m) Financial debt (PLN m) -602m Gearing ratio  Favorable development of USD/PLN FX rate positively influencing the level of indebtness of the company – mark to market revaluation lowering the 10+rela

  26. Slide 26: Thank You

    Grupa LOTOS S.A. THANK YOU Investor Relations tel: +48 58 308 73 93 fax: +48 58 346 22 35 e-mail: ir@grupalotos.pl Management Board 26/26

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