Chapter divider slide: Design must be alike to chosen cover style … · OMV Petrom │ Q2/17...
Transcript of Chapter divider slide: Design must be alike to chosen cover style … · OMV Petrom │ Q2/17...
Chapter divider slide: Design must be alike to chosen cover style (28pt) OMV Petrom Q2/17
Results
August 10, 2017
Mariana Gheorghe,
CEO
| OMV Petrom │ Q2/17 Results
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| OMV Petrom │ Q2/17 Results
Free cash flow of RON 397 mn after RON 841 mn dividend paid
Clean CCS Operating Result at RON 892 mn
Clean CCS EPS up 5 times yoy
6m/17 LTIR1 at 0.20 (2016: 0.17)
Key messages Q2/17
1 Lost time injury rate (employees and contractors) for OMV Petrom Group excluding Kazakhstan
Upstream: production 169 kboe/d; OPEX 10.4 USD/boe
3
Downstream Oil: refining margins +25% yoy; retail sales volumes +7% yoy
Downstream Gas: gas sales volumes +10% yoy
| OMV Petrom │ Q2/17 Results
Power prices in Romania (EUR/MWh)5
Economic environment
4
Q1/17 GDP growth1: 5.6% yoy
Demand Q2/17 yoy:
Fuels2: 8%
Gas3: >15%
Power4: 7%
Progress on gas market liberalization
45
31
Q2/17
41
Q1/17 Q4/16 Q3/16 Q2/16
29
OPCOM spot peak load OPCOM spot base load
Q2/17
17
16
Q1/17 Q4/16
15
Q3/16 Q2/16
14
15
14
Romanian centralized market6 Import7 CEGH8
4.143.98
44
Q2/17
50
48
Q1/17 Q4/16 Q3/16 Q2/16
46
Avg Urals price in USD/bbl (left scale)
Avg Brent price in USD/bbl (left scale)
Avg RON/USD (right scale)
Romania Oil price (USD/bbl) and FX (USD/RON)
Gas prices (EUR/MWh)5
1 Romanian National Institute of Statistics; 2 Fuels refer only to retail diesel and gasoline; 3 According to company estimates; 4 According to preliminary data available from the grid operator; 5 Converted from RON into EUR, FX rate: 4.5; 6 Prices estimated by OMV Petrom based on available public information; 7 As published by ANRE (Q4/16 price has been extrapolated from the October
2016 price, latest published by ANRE); 8 Central European Gas Hub
| OMV Petrom │ Q2/17 Results
CAPEX and E&A – guidance revised downwards
5
0.9
6m/17
3.2
2017E
Upstream
Downstream and Co&Other
E&A
Two wells spudded (thereof 1 finalized) in 6m/17
2017E: 10 wells to be spudded
2017E exploration expenditure in line with 2016
Group CAPEX incl. capitalized E&A (RON bn)
CAPEX incl. capitalized E&A
6m/17 at RON 0.9 bn:
19 development wells and sidetracks drilled
~500 workovers
FRDs: 5 in development, 7 under appraisal
2017E revised downwards due to portfolio
optimization, savings and projects revisions:
drilling ~70 development wells and sidetracks
workovers ~1,000
selected FRDs
| OMV Petrom │ Q2/17 Results
OPEX1 (USD/boe)
Upstream KPIs – improved OPEX/boe
6
96 95 92 94 93
81 79 78 76 76
-4%
Q2/17
169
Q1/17
170
Q4/16
170
Q3/16
174
Q2/16
177
Hydrocarbon production (kboe/d)
Gas Oil and NGL
10.410.511.611.1
12.0
Q1/17 Q4/16 Q2/17
-13%
Q3/16 Q2/16
Key drivers Q2/17 vs. Q2/16
Improved OPEX, in USD/boe terms, -13%:
abolition of tax on special constructions
MTBF 592 days; lower services and
personnel costs
favorable FX development
Total Upstream production -4%, due to:
natural decline
maintenance works
adverse weather
1 OMV Petrom aligned the production cost definition with its industry peers. Administrative expenses and selling and distribution costs are excluded from 2017 onwards. 2016 OPEX figures were re-calculated accordingly.
| OMV Petrom │ Q2/17 Results
OMV Petrom Indicator refining margin (USD/bbl)
Downstream Oil KPIs – strong refining margins and sales
Retail sales volumes (mn t)
0.68
0.570.65
0.73
0.63
+7%
Q2/17 Q1/17 Q4/16 Q3/16 Q2/16
8.51
7.587.14
5.96
6.82
Q2/17 Q1/17 Q4/16 Q3/16 Q2/16
7
Key drivers Q2/17 vs. Q2/16
Very strong refining margin +25% yoy
Growth in retail sales of 7% yoy
Refining utilization rate at 94%
| OMV Petrom │ Q2/17 Results
Gas sales volumes (TWh)
Downstream Gas KPIs – higher gas volumes
Net electrical output (TWh)
8
11.79
15.5014.17
11.4410.75
Q3/16 Q4/16
+10%
Q2/17 Q1/17 Q2/16
0.16
0.750.82
1.20
0.48
Q1/17 Q2/17
-67%
Q2/16 Q3/16 Q4/16
Key drivers Q2/17 vs. Q2/16
Higher gas volumes mainly to wholesalers
and chemical industry
Significant gas volumes on centralized
markets
Lower net electrical output due to Brazi power
plant being offline
| OMV Petrom │ Q2/17 Results
Neptun Deep
Dorobantu Wind Park
OMV Petrom Strategy Update 2021+
9
Mazarine transaction effective as of Aug 1
New rounds of divestments initiated
Streamline producing assets portfolio
Improve profitability
Optimize business portfolio
Focus on core activities
Sale contract signed
Completion estimated by year end
4 myAuchan stores opened in Q2
A total of 15 stores for the pilot
Enhance offer and customer experience
Petrom “value for money” brand
Divestment
Developing growth options
Continuing engineering activities
Potential FID H2/181
MyAuchan Store
Commitment to deliver attractive shareholder returns
1 If commercially viable
Chapter divider slide: Design must be alike to chosen cover style (28pt) OMV Petrom Q2/17
Results
August 10, 2017
Stefan Waldner,
CFO
| OMV Petrom │ Q2/17 Results
Strong FCF generation
Q2/17 vs. Q2/16
Operating cash flow up 94% due to:
► higher revenues and operating result
► continued cost savings
► favorable NWC developments
FCF at RON 1.2 bn vs. RON 0.1 bn in Q2/16
Dividends paid: RON 0.8 bn
11
RON mn Q2/17 Q2/16 6m/17 6m/16
Cash flow from operating activities (CFO) 1,714 883 2,976 1,771
Thereof, Depreciation, amortization and
impairments including write-ups 809 917 1,601 1,747
Change in net working capital (NWC) 275 (120) 99 (174)
Cash flow from investing activities (CFI) (475) (753) (1,091) (1,759)
Cash flow from financing activities (CFF),
of which
(952) (59) (943) (101)
Dividends paid (841) (0) (841) (0)
Cash and equivalents at end of period 2,937 724 2,937 724
Free cash flow (FCF) 1,239 130 1,884 12
Free cash flow after dividends 397 130 1,043 12
Cash flow Statement
| OMV Petrom │ Q2/17 Results
Q2/17 net income five times higher yoy
RON mn Q2/17 Q2/16 6m/17 6m/16
Sales 4,608 3,733 9,261 7,382
Clean CCS Operating Result 892 231 1,659 643
Thereof Upstream 447 210 907 137
Downstream Oil 395 166 675 421
Downstream Gas 36 (31) 68 16
Corporate and Other (8) (6) (29) (19)
Consolidation 22 (108) 39 88
Operating Result 779 220 1,577 566
Financial result (65) (88) (121) (91)
Taxes (123) (15) (247) (70)
Net income 1 592 118 1,210 408
Clean CCS net income 1 690 127 1,276 458
Q2/17 vs. Q2/16
Significantly improved Clean CCS Operating
Result
Upstream result supported by increased crude
prices and lower OPEX, despite lower production
Solid Downstream Oil result benefiting from
favorable market conditions
Downstream Gas: higher sales, insurance
revenues
Consolidation: positive effect is mainly a result of
yoy decrease in oil and gas inventories
12
1 Attributable to stockholders of the parent
Income Statement
| OMV Petrom │ Q2/17 Results
Upstream Clean Operating Result supported by higher realization
Key drivers Q2/17 vs. Q2/16
Higher realized prices
Decreased production costs and depreciation
Sales volumes -4%
13
194
114
447
210
-76
Q2/17 Realization Exploration
expenses
Other Q2/16
4
Volume
Upstream Clean Operating Result
(RON mn)
| OMV Petrom │ Q2/17 Results
Downstream Clean CCS Operating Result
(RON mn)
Downstream Clean CCS Operating Result more than tripled
Key drivers Q2/17 vs. Q2/16
Improved Downstream Oil result on the back of
strong refining margins and retail sales
Improved gas business performance
RON 73 mn insurance revenues related to
Brazi power plant
Brazi power plant offline
14
229
67
166
395
Q2/17
431
36
Q2/16
135
-31
Downstream Gas Downstream Oil
| OMV Petrom │ Q2/17 Results
Outlook 2017
Indicators Assumptions/Targets
Brent oil price
Refining margin
Production
USD 52/bbl
15
USD 43.7/bbl
174 kboe/d
USD 6.98/bbl
~ (3)% yoy2
> USD 7/bbl
FCF after dividends1
CAPEX
1 No dividends paid in 2016; 2 Not including portfolio optimization initiatives
Actual 2016
EUR 0.6 bn EUR 0.7 bn
RON 1.56 bn positive
Q&A
Backup
| OMV Petrom │ Q2/17 Results
Strong FCF generation
6m/17 vs. 6m/16
Operating cash flow up 68% due to:
► higher revenues and operating profits
► continued cost savings
► favourable NWC developments
FCF at RON 1.9 bn vs. neutral FCF in 6m/16
Dividends paid: RON 0.8 bn
18
RON mn Q2/17 Q2/16 6m/17 6m/16
Cash flow from operating activities (CFO) 1,714 883 2,976 1,771
Thereof, Depreciation, amortization and
impairments including write-ups 809 917 1,601 1,747
Change in net working capital (NWC) 275 (120) 99 (174)
Cash flow from investing activities (CFI) (475) (753) (1,091) (1,759)
Cash flow from financing activities (CFF),
of which
(952) (59) (943) (101)
Dividends paid (841) (0) (841) (0)
Cash and equivalents at end of period 2,937 724 2,937 724
Free cash flow (FCF) 1,239 130 1,884 12
Free cash flow after dividends 397 130 1,043 12
Cash flow Statement
| OMV Petrom │ Q2/17 Results
6m/17 Net income almost tripled yoy
RON mn Q2/17 Q2/16 6m/17 6m/16
Sales 4,608 3,733 9,261 7,382
Clean CCS Operating Result 892 231 1,659 643
Thereof Upstream 447 210 907 137
Downstream Oil 395 166 675 421
Downstream Gas 36 (31) 68 16
Corporate and Other (8) (6) (29) (19)
Consolidation 22 (108) 39 88
Operating Result 779 220 1,577 566
Financial result (65) (88) (121) (91)
Taxes (123) (15) (247) (70)
Net income 1 592 118 1,210 408
Clean CCS net income 1 690 127 1,276 458
19
1 Attributable to stockholders of the parent
6m/17 vs. 6m/16
Improved Clean CCS Operating Result by 158%
Upstream result supported by Urals up 32% and
lower OPEX, despite lower production
Solid Downstream Oil result benefiting from
favorable environment, cost optimisation
Downstream Gas: higher sales, insurance revenue
Consolidation: lower positive effect influenced by
prices evolution
Income Statement
| OMV Petrom │ Q2/17 Results
Upstream Clean Operating Result (RON mn)
20
Key drivers 6m/17 vs. 6m/16
Realized oil price +36%
Decreased production costs and depreciation
Group sales -4%
Lower gas prices
698
234
907
137
6m/16 6m/17 Other Exploration
expenses
10
Volume
-172
Realization
| OMV Petrom │ Q2/17 Results
Downstream Clean CCS Operating Result (RON mn)
21
421
675
254
6m/17
742
68
51
6m/16
437
16
Key drivers 6m/17 vs. 6m/16
Improved Downstream Oil result: favourable
market, cost optimisation and low base due to
Q2/16 turnaround
Improved gas business performance
RON 73 mn insurance revenues related to Brazi
power plant
Brazi power plant being offline
Downstream Oil Downstream Gas