Mol Hungarian Oil & Gas Plc Class A · BET:MOL
Mol Hungarian Oil & Gas Plc Class A — MOL Group — H1 2012 Earnings Presentation
14 slides from Mol Hungarian Oil & Gas Plc Class A's earnings presentation, Aug 14, 2012
Slide 1: Results of the First Half Year 2012 – Results and Outlook
RESULTS OF THE FIRST HALF YEAR 2012 RESULTS AND OUTLOOK 14 August 2012
Slide 2: Disclaimer
DISCLAIMER "This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capit
Slide 3: Slightly higher CCS-based operating profit
SLIGHTLY HIGHER CCS-BASED, OPERATING PROFIT …however, reported EBITDA decreased in Q2 2012 Q1 2012 Q2 2012 Q2 2011 Ch. % (IFRS), in HUF billion H1 2011 H1 2012 Ch. % 157.4 75.5 162.3 (53) EBITDA 339.6 232.9 (31) (1) 175.2 94.1 165.4 (43) EBITDA excl. special items 352.0 269.2 (24) 111.0 104.1 115.1
Slide 4: Upstream – decreasing oil price environment
UPSTREAM – DECREASING OIL PRICE ENVIRONMENT Total realized hydrocarbon Brent (USD/bbl) price (USD/boe) -9% -5% 79,7 117 118,6 75,8 76 108,3 ►Lower oil price - (affected especially the realized Q2 2011 Q1 2012 Q2 2012 Q2 2011 Q1 2012 Q2 2012 crude oil and condensate prices) HUF/USD average HRK/USD av
Slide 5: Upstream – lower production
UPSTREAM – LOWER PRODUCTION Partly due to maintenance activities Daily hydrocarbon production (mboepd)* 128,5 121,7 113,7 140 0,7 Other international cond. Production* decreased from Q1 level due to 6,8 0,7 120 4,8 2,8 Croatian condensate 4,7 4,4 0,7 5 2,7 5,1 ► maintenance activities (CEE gas) Hung
Slide 6: Slight decrease in Q2 Upstream result
SLIGHT DECREASE IN Q2 UPSTREAM RESULT EBITDA* (HUF bn) -6% 115,1 111 ► Decreasing average realized hydrocarbon price 104,1 - ► Lower production level ► Regulated Hungarian natural gas price for Q2 2011 Q1 2012 Q2 2012 household customers Operating profit* (HUF bn) -11% + ► USD remained strong 74,4 7
Slide 7: Gas Midstream results were hit by Croatian loss
GAS MIDSTREAM RESULTS WERE HIT BY CROATIAN LOSS Gas Midstream EBITDA* (HUF bn) Contribution of FGSZ and MMBF… + ► due to higher international transit volume and revenues -24% … was burned by Prirodni Plin 19,0 ► increasing import gas price and volume 17,8 13,5 - ► capped natural gas prices ►… Howeve
Slide 8: Downstream environment improved significantly
DOWNSTREAM ENVIRONMENT IMPROVED SIGNIFICANTLY Higher average crack spreads in the lower oil price environment Brent-Ural differential (USD/bbl) 250 200 premium unleaded (USD/t) /FOB ROTT/ 150 100 50 gas oil (USD/t) /FOB ROTT/ +57% 0 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 2,85 -50 1,85 -100 fuel oil
Slide 9: Motor fuels consumption decreased in the CEE region
MOTOR FUELS CONSUMPTION DECREASED IN THE CEE REGION …even diesel demand decreased in light of the worsening economic outlook Demand of motor fuels decreased in the CEE as ► still high price (gasoline) ► worsening economic outlook (diesel) Our sales dropped more significantly due to longer than expec
Slide 10: Downstream – best clean result since Q4 2010
DOWNSTREAM – BEST CLEAN** RESULT SINCE Q4 2010 Inventory losses turned Downstream into the red CCS-based** R&M operating CCS-based** R&M operating profit -Group (HUF bn) profit –MOL excl. INA (HUF bn) Improvement in clean** figures driven by… ► Better margin environment + ► Internal efforts aiming o
Slide 11: Strong financial position
STRONG FINANCIAL POSITION Operating cash flow before changes Operating cash flow after changes in working capital (HUF bn) in working capital (HUF bn) -45% 169 159 162 133 92 ► Strong operating cash flow due to lower working capital need Q2 2011 Q1 2012 Q2 2012 -11 Q2 2011 Q1 2012 Q2 2012 ►Decreased
Slide 12: Conservative capex policy
CONSERVATIVE CAPEX POLICY Organic CAPEX: HUF 102 bn 49,5 49,3 36,7 31,4 0,8 0,8 1,7 0,8 Upstream Downstream Gas Midstream Corporate and other H1 2011 H1 2012 Organic CAPEX spending was 49% higher compared to the base period: ► Upstream: CEE region, Russia and Kurdistan Region of Iraq ► Downstream: g
Slide 13: Outlook for the second half of 2012
Source: Company estimates OUTLOOK FOR THE SECOND HALF OF 2012 ► High crude price remains - historically higher demand for oil in H2 MACRO ► Tight Brent-Ural spread and less favorable crack spread environment Business outlook ► Some improvement in H2 2012 hydrocarbon production from Q2 2012 level ► B
Slide 14: Thank you for your attention!
THANK YOU FOR YOUR ATTENTION! Financial reports, announcements, other information and download possibilities can be found on our homepage: ir.mol.hu MOL Investor Relations: Tel: +361-464-1395 E-mail: [email protected] 14