ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q1 2015 Earnings Presentation
36 slides from ORLEN Spolka Akcyjna's earnings presentation, Apr 23, 2015
Slide 1: PKN ORLEN consolidated financial results for 1Q15
PKN ORLEN consolidated financial results for 1Q15 Sławomir Jędrzejczyk, CFO Rafał Warpechowski, Executive Director of Planning and Reporting Dariusz Grębosz, Investor Relations Director 23 April 2015
Slide 2: Agenda
Agenda 1Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 2
Slide 3: 1Q15 - key highlights
1Q15 - key highlights Value creation Financial strength EBITDA LIFO: PLN 1,9bn Financial gearing: 28,9% Energy projects progressing according to schedule Dividend: BoD recommendation PLN 1,65 per share CAPEX rationalization in Upstream segment Dividend day / payment: 16 June / 8 July 2015 People The
Slide 4: Agenda
Agenda 1Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 4
Slide 5: Macro environment in 1Q15 (y/y)
Macro environment in 1Q15 (y/y) Downstream margin increase Product slate of downstream margin Model downstream margin, USD/bbl Crack margins Refining products (USD/t) 1Q14 4Q14 1Q15 ∆ (r/r) +3,1 USD/bbl Diesel 107 122 123 15% Gasoline 145 135 140 -3% 12,9 12,6 12,6 HHO -251 -180 -133 47% 10,4 9,5 SN
Slide 6: GDP and fuel consumption increase
GDP and fuel consumption increase GDP increase1 Fuel consumption (diesel, gasoline)2 Change (%) to respective quarter of the last year mt 1Q14 2Q14 3Q14 4Q14 1Q15 1Q14 1Q15 1Q14 1Q15 + 2% + 1% 3,4 3,5 3,3 3,1 2,8÷3,5 2,51 2,57 0,80 0,81 Poland + 3% + 1% 8,36 8,57 2,6 4,36 4,40 1,0 1,2 1,6 0,6÷1,4 Ge
Slide 7: Agenda
Agenda 1Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 7
Slide 8: Financial results in 1Q15
Financial results in 1Q15 PLN m 1Q14 4Q14 1Q15 - 17% Revenues: decrease by (-) 17% (y/y) as a result of drop 24 119 24 902 20 005 in crude oil prices Revenues + 0,9 bn EBITDA LIFO: increase by PLN 0,9 bn (y/y) as a result of downstream margin increase by 33%, weakening of 1 899 PLN against USD by 22
Slide 9: EBITDA LIFO - result increase by PLN 0,9 bn (y/y)
EBITDA LIFO - result increase by PLN 0,9 bn (y/y) Segments’ results in 1Q15 Positive impact of: PLN m 283 14 Downstream margin increase by 3,1 USD/bbl (y/y) 1 899 1 741 Weakening of PLN against USD by 22% (y/y) -139 Sales increase in all segments in total by 9% (y/y) Improvement of fuel and nonfuel
Slide 10: Downstream – EBITDA LIFO PLN 1,7 bn
Downstream – EBITDA LIFO PLN 1,7 bn as a result of good macro and higher sales (y/y) EBITDA LIFO quarterly (without impairments*) PLN m + Downstream margin increase by 3,1 USD/bbl (y/y) as a result of 1 778 1 741 lower crude oil prices and margins improvement on refining 1 800 1 597 products, includ
Slide 11: Downstream – operational data
Downstream – operational data Sales increase by 10% (y/y) on all markets Sales volumes Utilization ratio mt % + 10% 8 7,6 7,6 7,6 Rafineries 1Q14 4Q14 1Q15 ∆ (r/r) 7,4 7,5 7,3 7,1 7,2 7,2 7,3 Plock 86% 89% 87% 1 pp 6,9 Unipetrol 83% 88% 84% 1 pp 7 6,8 6,8 6,8 6,6 6,8 6,5 6,5 ORLEN Lietuva 58% 87% 70
Slide 12: Downstream Energy projects realisation (industry cogeneration)
Downstream Energy projects realisation (industry cogeneration) Strategic assumptions Building a CCGT plant in Wloclawek (463 MWe) Industry cogeneration projects – with the highest profitability / the In 1Q15 assembly works of all auxiliary systems and electric and lowest risk , thanks to guarantee o
Slide 13: Retail – EBITDA LIFO Record high first quarter
Retail – EBITDA LIFO Record high first quarter EBITDA LIFO quarterly (without impairments*) PLN m + Total sales volumes increase by 4% (y/y) on all markets 500 451 441 388 Market share increase in Poland and the Czech Rep. (y/y) 400 341360 369 359 379 306 324 295 283 Improvement of fuel margins (y/y
Slide 14: Retail – operational data
Retail – operational data Sales increase by 4% (y/y) and further growth of non-fuel offer Sales volumes Number of petrol stations and market shares (by volume) mt #, % 2,5 + 4% 2,1 2,1 2,0 2,0 2,0 2,0 2,0 1,9 1,9 1,9 1,8 1,9 1,9 1,9 1,8 1,8 1,8 1,8 1,7 1,7 1,6 1,5 1,5 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1
Slide 15: Upstream Exploration projects in Poland
Upstream Exploration projects in Poland Unconventional projects Poland Conventional projects Conventional projects Project Sieraków In 1Q15 area development study and data analysis to assess area prospects and update schedule works 1 1 2 1 1 1 2 Project Karbon Wołomin 1 In 1Q15 conduction of prepara
Slide 16: Upstream Production projects in Canada
Upstream Production projects in Canada - ORLEN Upstream Canada Canada Assets Assets in Canadian Alberta province is located on four areas: Lochend, Kaybob, Pouce Coupe and Ferrier/Strachan Total reserves: ca. 49,5 m boe of crude oil and gas (2P) 1Q15 In 1Q15 drilling of 2 new wells were started (1,6
Slide 17: Agenda
Agenda 1Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 17
Slide 18: Cash flow
Cash flow PLN 1,0 bn cash flow from operations Cash flow from operations Cash flow from investments PLN bn PLN bn 1,9 -0,2 1,0 -0,4 -0,3 0,0 -0,6 -0,6 EBITDA LIFO effect Working capital Others Net inflow CAPEX Change of Net outflow LIFO correction change from investments from operations payables/inf
Slide 19: Safe level of indebtedness and financial leverage
Safe level of indebtedness and financial leverage Net debt and gearing Gross debt structure: PLN bn, % Financial gearing, % USD 6%, EUR 56%, PLN 27%, CZK 6%, CAD 5% 32,7 33,0 28,5 28,9 Net debt decrease by PLN 0,6 bn (q/q) due to positive FX from 25,9 credit and debt valuation in the amount of PLN 0
Slide 20: Capital expenditures
Capital expenditures Planned CAPEX in 2015 Realised CAPEX in 1Q15 – split by segment PLN bn, % PLN m 3,8 38 583 76 68 Downstream 66% 5,8 Retail 401 9% Growth 2,5 5,1 Energy* 252 25% Maintenance Upstream Petrochemicals 53 1,3 and regulatory Refining 96 CAPEX Downstream Retail Upstream Corporate CAPEX
Slide 21: Agenda
Agenda 1Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 21
Slide 22: Market outlook for 2015
Market outlook for 2015 Macroeconomic environment Economy – GDP forecasts Brent crude oil price – we assume temporary stabilization of crude GDP – expected level of 3,4% in 2015 and 3,3% in 2016 - NBP oil prices at the current levels and then increase as a result of (March 2015) economic growth. Cru
Slide 23: Thank You for Your attention
Thank You for Your attention 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] www.orlen.pl
Slide 24: Supporting slides
Agenda Supporting slides 24 24
Slide 25: Results – split by quarters
Results – split by quarters PLN, m 1Q14 4Q14 1Q15 ∆ r/r 3M14 3M15 ∆ Revenues 24 119 24 902 20 005 -17% 24 119 20 005 -17% EBITDA LIFO 953 929 1 899 99% 953 1 899 99% Effect LIFO -177 -1 593 -237 -34% -177 -237 -34% EBITDA 776 -664 1 662 114% 776 1 662 114% Depreciation -522 -485 -452 13% -522 -452 1
Slide 26: Results – split by segments
Results – split by segments 1Q15 Corporate Downstream Retail Upstream Total PLN, m Functions EBITDA LIFO 1 741 283 14 -139 1 899 Effect LIFO -237 - - - -237 EBITDA 1 504 283 14 -139 1 662 Depretiation -310 -91 -34 -17 -452 EBIT 1 194 192 -20 -156 1 210 EBIT LIFO 1 431 192 -20 -156 1 447 1Q14 Corpora
Slide 27: EBITDA LIFO – split by segments
EBITDA LIFO – split by segments PLN, m 1Q14 4Q14 1Q15 ∆ r/r 3M14 3M15 ∆ Downstream 821 941 1 741 112% 821 1 741 112% Retail 234 408 283 21% 234 283 21% Upstream 31 -272 14 -55% 31 14 -55% Corporate functions -133 -148 -139 -5% -133 -139 -5% EBITDA LIFO 953 929 1 899 99% 953 1 899 99% 27 27
Slide 28: Results - split by companies
Results - split by companies Others and 1Q15 ORLEN consolidation PLN, m PKN ORLEN S.A. Unipetrol 2) Lietuva 2) corrections Total Revenues 13 623 3 637 3 260 -515 20 005 EBITDA LIFO 763 472 376 288 1 899 LIFO effect1) -153 -32 -65 13 -237 EBITDA 610 440 311 301 1 662 Depreciation -268 -69 -10 -105 -4
Slide 29: ORLEN Lietuva Group Key elements of the profit and loss account
ORLEN Lietuva Group Key elements of the profit and loss account USD m 1Q14 4Q14 1Q15 ∆ y/y 3M14 3M15 ∆ Revenues 1 285 1 414 876 -32% 1 285 876 -32% EBITDA LIFO -21 -86 101 - -21 101 - EBITDA -29 -58 83 - -29 83 - EBIT -58 -61 81 - -58 81 - Net result -51 -68 47 - -51 47 - Substantial improvement of
Slide 30: UNIPETROL Group Key elements of the profit and loss account
UNIPETROL Group Key elements of the profit and loss account CZK m 1Q14* 4Q14 1Q15 ∆ y/y 3M14 3M15 ∆ Revenues 28 809 28 939 23 975 -17% 28 809 23 975 -17% EBITDA LIFO 683 2 645 3 111 355% 683 3 111 355% EBITDA 552 1 132 2 897 425% 552 2 897 425% EBIT -58 637 2 444 - -58 2 444 - Net result -232 633 2
Slide 31: Macro environment in 1Q15 (q/q)
Macro environment in 1Q15 (q/q) Downstream margin increase Product slate of downstream margin Model downstream margin, USD/bbl Crack margins Refining products (USD/t) 2Q14 1Q15 2Q15* ∆ (y/y) ∆ (q/q) +1,6 USD/bbl Diesel 91 123 109 20% -11% Gasoline 195 140 191 -2% 36% 14,2 12,9 12,6 12,6 HHO -254 -13
Slide 32: Macro environment in 1Q15 (q/q)
Macro environment in 1Q15 (q/q) Refining margin and B/U differential increase Petrochemical margin increase Model refining margin and Brent/Ural differential, USD/bbl Model petrochemical margin, EUR/t differential margin + 1,6 USD/bbl + 180 EUR/t 10,8 926 9,2 1,9 844 1,7 756 782 6,6 6,5 741 746 4,7
Slide 33: Production data
Production data 1Q14 4Q14 1Q15 ∆ (y/y) ∆ (q/q) 3M14 3M15 ∆ Total crude oil throughput in PKN ORLEN 6 190 7 221 6 652 7% -8% 6 190 6 652 7% Utilization in PKN ORLEN 78% 89% 82% 4 pp -7 pp 78% 82% 4 pp Refinery in Poland 1 Processed crude (tt) 3 503 3 612 3 533 1% -2% 3 503 3 533 1% Utilization 86% 89
Slide 34: Dictionary
Dictionary Model downstream margin = revenues (90,7% Products = 22,8% Gasoline + 44,2% Diesel + 15,3% HHO + 1,0% SN 150 + 2,9% Ethylene + 2,1% Propylene + 1,2% Benzene + 1,2% PX) – costs (input 100% = 6,5% Brent crude oil + 91,1% URAL crude oil + 2,4% natural gas) Model refining margin = revenues (9
Slide 35: 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 36: For more information on PKN ORLEN, please contact Investor Relations
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] www.orlen.pl