ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q4 2012 Earnings Presentation
39 slides from ORLEN Spolka Akcyjna's earnings presentation, Jan 23, 2013
Slide 1: PKN ORLEN consolidated financial results 4Q12
PKN ORLEN consolidated financial results 4Q12 Jacek Krawiec, CEO Sławomir Jędrzejczyk, CFO 23 January 2013
Slide 2: Agenda
Agenda ` Highlights of 2012 Macroeconomic environment Financial and operating results in 4Q12 Liquidity Upstream and energy Summary of 2012 2
Slide 3: Company's achievements in 2012
Company’s achievements in 2012 Financial results 120,1 Operating efficiency 35,2 ¾ Revenues from +12% ¾ Sales, 0% sales, mt PLN bn 5,1 ¾ Crude oil 27,9 ¾ EBITDA acc. to +32% throughput +1% LIFO1, mt PLN bn ¾ Orlen Lietuva 180 ¾ Net profit, 2,2 +8% EBITDA acc. to LIFO, +105 PLN bn USD m Financial saf
Slide 4: Company's achievements in 2012
Company’s achievements in 2012 Development Key transactions ¾ Approval of the Strategy for 2013 - 2017 setting ¾ Realization of reduced Biocomponent National directions of further growth Target: at the level of 5,65 % ¾ Unconventional gas: 4 wells completed, 1 in ¾ Agreement for crude oil deliveries
Slide 5: Agenda
Agenda Highlights of 2012 ` Macroeconomic environment Financial and operating results in 4Q12 Liquidity Upstream and energy Summary of 2012 5
Slide 6: Macro environment in 4Q12 (y/y)
Macro environment in 4Q12 (y/y) Crude oil price stabilized Increase in refining margin and U/B differential in total Average Brent Crude Oil price, USD/bbl Model refining margin and Brent/Ural differential, USD/bbl differential margin + 1 USD/bbl + 2,4 USD/bbl 119 110 110 109 108 8,9 9,1 2,1 0,7 5,5
Slide 7: Significant drop in fuel consumption
Significant drop in fuel consumption GDP increase1 Fuel consumption (diesel, gasoline)2 Change (%) to respective quarter of last year mt 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 4Q12 4Q11 4Q12 - 7% 4,6 3,6 3,28 - 5% 3,06 2,3 1,4 0,8/1,5 0,98 0,92 Poland + 2% - 6% 8,46 8,64 1,4 1,7 4,94 4,63 0,5 0,4 0,3/0,5 Ger
Slide 8: Agenda
Agenda Highlights of 2012 Macroeconomic environment ` Financial and operating results in 4Q12 Liquidity Upstream and energy Summary of 2012 8
Slide 9: Over PLN 120 bn of sales revenues
Over PLN 120 bn of sales revenues 4Q11 3Q12 4Q12 PLN m 12M11 12M12 ¾ Increase of revenues in 2012 by 12% (y/y) as a result of higher refining and petrochemical + 4% + 12% products prices and weakening of PLN against USD and EUR. 29 976 31 654 31 245 Revenues 106 973 120 102 ¾ Increase of EBITDA acc.
Slide 10: Over PLN 5,1 bn of EBITDA according to LIFO before impairments
Over PLN 5,1 bn of EBITDA according to LIFO before impairments 4Q11** 3Q12 4Q12*** change y/y PLN m 12M11** 12M12*** change EBITDA acc. to LIFO before 713 1 552 1 039 46% impairments* 3 894 5 147 32% -1 060 1 448 -738 30% EBIT, of which: 2 066 2 024 -2% -1 719 990 -225 87% EBIT acc. to LIFO -283 2 1
Slide 11: Maintained high level of over 35 mt of sales
Maintained high level of over 35 mt of sales 4Q11 3Q12 4Q12 kt 12M11 12M12 ¾ Total sales volumes in 4Q12 increased by 1% (y/y) to 9,3 mt. + 1% 0% 9 153 9 627 9 283 35 446 35 283 ¾ Refining volumes increased by 2% (y/y) due to higher sales in ORLEN Lietuva at lower Sales volumes volumes on Polish and
Slide 12: 7,5 mt of crude oil throughput in 4Q12
7,5 mt of crude oil throughput in 4Q12 Crude oil throughput Utilisation ratio mt % PKN ORLEN Unipetrol ORLEN Lietuva + 4% 100 98 7,4 7,5 100 94 94 93 7,2 6,7 90 6,4 90 97 90 79 79 92 80 86 79 70 71 57 60 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 Fuel yield Comments % Gasoline yield Middle di
Slide 13: Agenda
Agenda Highlights of 2012 Macroeconomic environment Financial and operating results in 4Q12 ` Liquidity Upstream and energy Summary of 2012 13
Slide 14: Financial safety
Financial safety Net debt and financial gearing Financing PLN bn, % ¾ Net debt / EBITDA - 0,04 1,58 - 0,8 bn 7,6 7,1 8,2 ¾ Net debt / EBITDA 5,9 6,8 acc. to LIFO before - 0,64 1,31 impairments* ¾ Company financing with average maturity of 3 years 4Q11 1Q12 2Q12 3Q12 4Q12 secured. 31,5% 26,9% 27,7% 2
Slide 15: Over PLN 1,5 bn of cash flow from operations before working capital change
Over PLN 1,5 bn of cash flow from operations before working capital change change 4Q11 3Q12 4Q12 PLN m 12M11 12M12 change y/y Cash flow from operations before 1 313 2 005 667 -646 5 564 5 132 -432 working capital change 0 0 0 0 One-off payments (CIT and VAT) 0 -904 -904 -1 697 1 349 -988 709 Working
Slide 16: Agenda
Agenda Highlights of 2012 Macroeconomic environment Financial and operating results in 4Q12 Liquidity ` Upstream and energy Summary of 2012 16
Slide 17: Upstream: Conventional and unconventional projects
UPSTREAM Conventional and unconventional projects We widen portfolio of concession for shale gas … systematically analyzing results of already and tight gas exploration … conducted wells … ¾ CAPEX on E&P in 2013-2017 may reach up to PLN 5.1bn, ¾ 4 wells finished (3 vertical and 1 horizontal) includi
Slide 18: Energy: New projects and improvement of efficiency of assets held
ENERGY New projects and improvement of efficiency of assets held Competitive advantage Building a 463 MWe CCGT plant in Wloclawek ¾ Power plant in Plock (345 MW, 1970 MWt) – the biggest industrial ¾ Signing in 4Q12 a contract for CCGT building. block in Poland. ¾ Contractor will enter the building s
Slide 19: Agenda
Agenda Highlights of 2012 Macroeconomic environment Financial and operating results in 4Q12 Liquidity Upstream and energy ` Summary of 2012 19
Slide 20: 2012 summary
2012 summary ¾Good results despite unstable macro environment ¾Financial safety ¾Development projects, in particular in Energy and Upstream ¾Approval of Strategy for years 2013 – 2017: Shareholders, Value Creation, Financial Standing 20
Slide 21: Thank You for Your attention
Thank You for Your attention www.orlen.pl For more information on PKN ORLEN, please contact Investor Relations Department: phone: + 48 24 256 81 80 fax: + 48 24 367 77 11 e-mail: [email protected] 21
Slide 22: Supporting slides
Agenda ` Supporting slides 22
Slide 23: PKN ORLEN: Better macro and higher sales volumes improve the result
PKN ORLEN Better macro and higher sales volumes improve the result PLN, m PLN +322 m 0 -500 755 -738 -1.000 -1.060 207 -1.500 532 -2.000 -1.172 -2.500 EBIT 4Q11 Inventory valuation Macro Volumes Other EBIT 4Q12 ¾ Negative impact of crude oil price changes on inventory valuation (y/y) as a result of
Slide 24: Refining segment
Refining segment Result influenced by inventories valuation and impairments of assets PLN, m 400 PLN -1 108 m 233 200 0 -200 187 -400 419 -600 -800 -1.128 -586 -875 -1.000 EBIT 4Q11 Inventory valuation Macro Volumes Other EBIT 4Q12 ¾ Negative impact of crude oil price changes on inventory valuation
Slide 25: Retail segment
Retail segment Strengthening of market position at decreasing consumption in Poland PLN, m PLN +72 m 94 120 100 98 -16 -3 -3 80 60 40 26 20 0 EBIT 4Q11 Fuel margins Volumes Non-fuel sales Other EBIT 4Q12 ¾ Lower retail sales on Polish market (y/y) mainly due to decrease of fuel consumption partially
Slide 26: Petrochemical segment
Petrochemical segment Improvement of results thanks to better margins and volumes PLN, m PLN + 1 527 m 400 1.422 267 200 0 -200 -400 -600 -800 -1.000 113 36 -1.200 -1.400 -1.260 -44 EBIT 4Q11 Inventory valuation Macro Volumes Other EBIT 4Q12 ¾ Negative impact of inventories valuation offset by posit
Slide 27: Main P&L elements split by key companies in 4Q12
Main P&L elements split by key companies in 4Q12 Others and PKN PKN PKN PKN ORLEN 3) ORLEN Change PKN ORLEN IFRS, PLN m Unipetrol 3) consolidation ORLEN ORLEN ORLEN Change S.A. Lietuva y/y 12M11 corrections 4Q12 4Q11 12M12 Revenues 23 571 4 299 7 481 -4 106 31 245 29 976 4% 120 102 106 973 12% EBITD
Slide 28: Operating result split by segments and key companies in 4Q12
Operating result split by segments and key companies in 4Q12 Others and PKN PKN PKN PKN PKN ORLEN 4) ORLEN Change IFRS, PLN m Unipetrol 4) consolidation ORLEN ORLEN ORLEN ORLEN Change S.A. Lietuva y/y corrections 4Q12 4Q11 12M12 12M11 EBIT -92 -698 30 22 -738 -1 060 30% 2 024 2 066 -2% EBIT acc. to
Slide 29: ORLEN Lietuva Group: Key elements of the profit and loss account
ORLEN Lietuva Group Key elements of the profit and loss account 1 change 4Q11 3Q12 4Q12 IFRS, USD m 12M11 12M12 change y/y 2096 2323 2360 13% Revenues 8 170 8 051 -1% 0 141 39 - EBITDA 105 177 69% -19 126 21 - EBIT 25 114 356% -12 85 34 - EBIT acc. to LIFO -6 117 - -28 93 37 - Net result -6 80 - ¾ S
Slide 30: UNIPETROL Group: Key elements of the profit and loss account
UNIPETROL Group Key elements of the profit and loss account 1 change 4Q11 3Q12 4Q12 IFRS, CZK m 12M11 12M12 change y/y 24 327 28 438 26 292 8% Revenues 97 428 107 281 10% -5 159 1 656 -3 783 27% EBITDA -2 263 -1 207 47% EBITDA acc. LIFO before -736 1 201 933 - 1 645 3 593 118% impairments* -5 935 94
Slide 31: Macro environment in 1Q13 (q/q)
Macro environment in 1Q13 (q/q) Crude oil price increase Significant decrease in refining margin Average Brent Crude Oil price, USD/bbl Model refining margin and Brent/Ural differential, USD/bbl + 2 USD/bbl differential margin 8,9 9,1 0,7 - 2,6 USD/bbl 109 119 110 110 112 2,1 108 5,5 4,6 1,1 3,1 1,3
Slide 32: Macro environment in 2013
Macro environment in 2013 14 ORLEN Group model refining margin 2012 average 2013 2013 average 2012 12 10 8 6 5,7 USD/bbl 4 2 1,7 USD/bbl 0 -2 January February March April May June July August September October November December 5 Ural/Brent differential 2012 average 2013 2013 average 2012 4 3 2 1,3
Slide 33: Macro environment – comparison 2012 vs 2011
Macro environment – comparison 2012 vs 2011 14 ORLEN Group model refining margin 2011 average 2012 2012 average 2011 12 10 8 5,7 USD/bbl 6 4 2,1 USD/bbl 2 0 -2 January February March April May June July August September October November December 5 Ural/Brent differential 2011 average 2012 2012 avera
Slide 34: Production data
Production data change change Production 4Q11 3Q12 4Q12 (y/y) (q/q) 12M11 129M12 change Total crude oil throughput in PKN ORLEN (tt) 7 179 7 431 7 491 4% 1% 27 785 27 939 1% Refinery in Poland 1 Processed crude (tt) 3 814 3 759 3 940 3% 5% 14 547 15 191 4% Utilisation 94% 92% 97% 3 pp 5 pp 91% 93% 2
Slide 35: Maintenance shutdowns of key installations in 2012
Maintenance shutdowns of key installations in 2012 Q1’12 Q2’12 Q3’12 Q4’12 CDU III Hydrocracker Reforming HDS VI HDS VII PX/PTA Olefin Unit (S.C.) BOP (PE, PP) Hydrogen / Recovery Unit H-Oil PVC (Anwil) Fertilizers (Anwil) Refinery FCC Complex shutdown Litvinov - refinery Litvinov - petrochemical Kr
Slide 36: Maintenance shutdowns schedule of key installations for 2013
Maintenance shutdowns schedule of key installations for 2013 Q1’13 Q2’13 Q3’13 Q4’13 CDU III FCC Hydrocracker H-Oil HDS VI / HDS VII HDS VI HDS VII Hydrogen / Recovery Unit Olefin Unit (S.C.) PX/PTA BOP - PE Reforming HDS VBU Litvinov – NHC / VBU Litvinov - petrochemicals Kralupy - HDS CDU – Crude D
Slide 37: Dictionary
Dictionary PKN ORLEN model refining margin = revenues (93,5% Products = 36% Gasoline + 43% Diesel + 14,5% HHO) - costs (100% input: crude oil and other raw materials). Total input calculated acc. to Brent Crude quotations. Spot market quotations. Spread Ural Rdam vs fwd Brent Dtd = Med Strip - Ural
Slide 38: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by PKN ORLEN S.A. (“PKN ORLEN” or “Company”). Neither the Presentation nor any copy hereof may be copied, distributed or delivered directly or indirectly to any person for any purpose without PKN ORLEN’s knowledge and consent. Copying,
Slide 39: www.orlen.pl
www.orlen.pl For more information on PKN ORLEN, please contact Investor Relations Department: phone: + 48 24 256 81 80 fax: + 48 24 367 77 11 e-mail: [email protected] 39