ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q2 2012 Earnings Presentation
36 slides from ORLEN Spolka Akcyjna's earnings presentation, Jul 26, 2012
Slide 1: PKN ORLEN consolidated financial results 2Q12
PKN ORLEN consolidated financial results 2Q12 Jacek Krawiec, CEO Sławomir Jędrzejczyk, CFO 26 July 2012
Slide 2: Agenda
Agenda Achievements in 2Q12 Macroeconomic environment Financial and operating results in 2Q12 Liquidity Upstream and energy Summary 2
Slide 3: PKN ORLEN achievements in 2Q12
PKN ORLEN achievements in 2Q12 Financial parameters Over PLN 1,2 bn operating profit acc. LIFO. Better macro environment (y/y): decrease in crude oil price by (-) 8% to 108 USD/bbl. increase in model refining margin and U/B differential by 4,6 USD/bbl to 8,9 USD/bbl. decrease in petrochemical margin
Slide 4: Agenda
Agenda Achievements in 2Q12 Macroeconomic environment Financial and operating results in 2Q12 Liquidity Upstream and energy Summary 4
Slide 5: Better macro environment in 2Q12 (y/y)
Better macro environment in 2Q12 (y/y) Crude oil price decrease by (-) 8% Over double increase in refining margin and U/B diff Average Brent Crude Oil price, USD/bbl Model refining margin and Ural/Brent differential, USD/bbl differential margin - 9 USD/bbl + 4,6 USD/bbl 117 113 119 109 108 8,9 2,1 4
Slide 6: Lower GDP growth and high prices influence fuel consumption
Lower GDP growth and high prices influence fuel consumption GDP increase1 Fuel consumption (diesel, gasoline)2 Change (%) to respective quarter of last year mt 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 2Q12 2Q11 2Q12 - 8% 4,2 4,2 4,3 - 5% 3,5 3,12 2,88 2,7-3,4 Poland 1,04 0,98 + 2% - 3% 8,10 8,25 2,9 2,7 2,0 1,
Slide 7: Agenda
Agenda Achievements in 2Q12 Macroeconomic environment Financial and operating results in 2Q12 Liquidity Upstream and energy Summary 7
Slide 8: Over PLN 28 bn of revenues
Over PLN 28 bn of revenues 2Q11 1Q12 2Q12 PLN m 6M11 6M12 Increase of revenues by 9% (y/y) as a result of higher refining product prices + 9% + 18% and weakening of PLN against foreign 25 641 29 248 27 955 57 202 currencies. Revenues 48 315 Increase of operating profit according to LIFO by PLN 0,5 b
Slide 9: PLN 1,2 bn – the highest operating result according to LIFO since 2006
PLN 1,2 bn – the highest operating result according to LIFO since 2006 2Q11 1Q12 2Q12 change y/y PLN m 6M11 6M12 change 1 586 1 518 918 -42% EBITDA 3 479 2 436 -30% 1 009 939 375 -63% EBIT, of which: 2 348 1 314 -44% 770 201 1 233 60% EBIT according to LIFO 1 220 1 434 18% 510 732 -66 - Refining 1 5
Slide 10: Retail sales volumes increase and higher sales of PTA (y/y)
Retail sales volumes increase and higher sales of PTA (y/y) 2Q11 1Q12 2Q12 kt 6M11 6M12 Total sales volumes in 2Q12 decreased by (-) 5% (y/y) to 8,1 mt. - 5% - 2% 8 597 8 224 8 149 16 667 16 373 Refining sales volumes decreased by (-) Sales volumes 8% (y/y) mainly due to cyclical turnaround in ORLEN
Slide 11: Crude oil throughput decrease (y/y) due to cyclical turnaround in ORLEN Lietuva
Crude oil throughput decrease (y/y) due to cyclical turnaround in ORLEN Lietuva Crude oil throughput Utilisation ratio mt % 97 100 94 94 - 6% 90 87 96 90 7,4 7,2 90 6,8 6,7 6,4 85 79 79 79 80 83 74 70 71 57 60 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 Fuel yield Comments % Gasoline yield Plo
Slide 12: Agenda
Agenda Achievements in 2Q12 Macroeconomic environment Financial and operating results in 2Q12 Liquidity Upstream and energy Summary 12
Slide 13: Safe level of indebtedness and financial ratios
Safe level of indebtedness and financial ratios Good financial standing Net debt and financial gearing % Financial in PLN bn, % gearing Net debt of PLN 8,2 bn and financial gearing of 27,7%. + 0,3 bn Covenant net debt/EBITDA at the level of 2,25. 9,3 7,9 7,6 8,2 7,1 Net negative FX from debt revalua
Slide 14: One-off CIT and VAT payments decreased operational cash flow
One-off CIT and VAT payments decreased operational cash flow change 2Q11 1Q12 2Q12 PLN m 6M11 6M12 change y/y Cash flow from operations before 1 589 1 676 783 -806 3 573 2 459 -1 114 working capital change 0 0 -904 -904 One-off payments (CIT and VAT) 0 -904 -904 -82 -1 428 -871 -789 Working capital
Slide 15: Agenda
Agenda Achievements in 2Q12 Macroeconomic environment Financial and operating results in 2Q12 Liquidity Upstream and energy Summary 15
Slide 16: Upstream: Shale gas – 8 exploratory licenses
UPSTREAM Shale gas – 8 exploratory licenses / 6,75 th km2 Lublin Shale Project: 2 vertical wells are finished (Wierzbica and Lubartów). In 2012, up to 7 wells (including up to 2 horizontal) on Wierzbica, Lubartów and Garwolin are planned. 2 drilling rigs, for works that are planned in 2H12, were con
Slide 17: Upstream: Conventional projects – crude oil and gas
UPSTREAM Conventional projects – crude oil and gas 1. Latvian shelf - off-shore project on Latvian shelf is realized with Kuwait Energy. 2 exploration and upstream licenses. For 2012/2013 up to 2 drills are planned. Status of project: Analysis of 3D seismic data and choice of drills’ locations were
Slide 18: Energy: New projects and improvement of efficiency of assets held
ENERGY New projects and improvement of efficiency of assets held 1. Building a gas power plant ~500 MWe in Włocławek Advanced preparation of investment: we have the environmental decision, the permission to build energy block, the agreement with GAZ-SYSTEM for building a pipeline and the agreement w
Slide 19: Agenda
Agenda Achievements in 2Q12 Macroeconomic environment Financial and operating results in 2Q12 Liquidity Upstream and energy Summary 19
Slide 20: Summary
Summary Achievements Over PLN 1,2 bn operating profit acc. LIFO. PLN 28 bn of revenues; increase by 9% (y/y). Increase in retail sales by 2% (y/y) at better margins. Safe financial position Net debt PLN 8,2 bn; financial gearing to 27,7%; covenant 2,25. 7-year corporate bonds with a total value of P
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: Slajdy pomocnicze
Agenda Slajdy pomocnicze 22
Slide 23: Improvement of macro environment in refining segment
PKN ORLEN Improvement of macro environment in refining segment PLN m 1.200 PLN -634 m 1.009 1.000 800 692 600 375 400 -179 -50 200 0 -200 -1.097 EBIT 2Q11 Inventory valuation Macro Volumes Other EBIT 2Q12 Negative impact of crude oil price changes on inventory valuation (y/y). Positive impact of mac
Slide 24: Refining segment: Impact of ORLEN Lietuva turnaround on sales level
Refining segment Impact of ORLEN Lietuva turnaround on sales level PLN m PLN -576 m 600 510 400 690 200 0 -199 -112 -66 -200 -400 -955 -600 EBIT 2Q11 Inventory valuation Macro Volumes Other EBIT 2Q12 Negative impact of crude oil price changes on inventory valuation (y/y) and visible improvement of m
Slide 25: Retail segment: Further sales increase
Retail segment Further sales increase PLN m PLN +60 m 300 5 72 9 252 250 -26 200 192 150 100 50 0 EBIT 2Q11 Fuel margins Volumes Non-fuel sales Other EBIT 2Q12 Increase of retail sales by 2% (y/y) as a result of growing volumes on Polish, German and Lithuanian markets. Visible improvement of fuel ma
Slide 26: Petrochemical segment
Petrochemical segment Market expectation of further correction of petrochemical products prices PLN m 600 PLN -142 m 521 500 2 11 379 400 -142 -13 300 200 100 0 EBIT 2Q11 Inventory valuation Macro Volumes Other EBIT 2Q12 Negative impact of petrochemical products prices changes on inventory valuation
Slide 27: Main P&L elements split by key companies in 2Q12
Main P&L elements split by key companies in 2Q12 Others and PKN PKN PKN PKN PKN ORLEN 3) ORLEN Change IFRS, PLN m Unipetrol 3) consolidation ORLEN ORLEN ORLEN ORLEN Change S.A. Lietuva y/y corrections 2Q12 2Q11 6M12 6M11 Revenues 19 267 4 574 4 738 -624 27 955 25 641 9% 57 202 48 315 18% EBITDA 820
Slide 28: Operating result split by segments and key companies in 2Q12
Operating result split by segments and key companies in 2Q12 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 2Q12 2Q11 6M12 6M11 EBIT 553 -67 -269 158 375 1 009 -63% 1 314 2 348 -44% EBIT acc. LIF
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 2Q11 1Q12 2Q12 IFRS, USD m 6M11 6M12 change y/y 2 102 1 930 1 437 -32% Revenues 3 856 3 368 -13% 36 52 -56 - EBITDA 109 -3 - 16 35 -68 - EBIT 69 -33 - 29 -13 11 -62% EBIT acc. LIFO 12 -2 - 9 36 -86 - Net result 61 -49 - Complet
Slide 30: UNIPETROL Group: Key elements of the profit and loss account
UNIPETROL Group Key elements of the profit and loss account 1 change 2Q11 1Q12 2Q12 IFRS, CZK m 6M11 6M12 change y/y 25 950 25 449 27 102 4% Revenues 49 038 52 550 7% 1 012 720 201 -80% EBITDA 2 390 921 -61% 224 -51 -437 - EBIT 795 -488 - 274 -703 754 175% EBIT acc. LIFO 278 51 -82% -1 -361 -598 - N
Slide 31: Macro environment in 2012
Macro environment in 2012 14 12 PKN ORLEN Group model refining margin 2011 average 2012 2012 average 2011 10 8 6 5,3 USD/bbl 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 average 2011 4 3 2
Slide 32: Macro environment in 3Q12
Macro environment in 3Q12 Crude oil price decrease Decrease in total of refining margin and U/B diff Average Brent Crude Oil price, USD/bbl Model refining margin and Ural/Brent differential, USD/bbl differential margin - 0,4 USD/bbl - 6 USD/bbl 117 113 119 8,9 8,5 109 108 102 2,1 0,0 4,3 4,6 3,4 3,1
Slide 33: Production data
Production data change change Production 2Q11 1Q12 2Q12 (r/r) (kw/kw) 6M11 6M12 change Total crude oil throughput in PKN ORLEN (tt) 6 765 6 655 6 362 -6% -4% 13 188 13 017 -1% 1 Refinery in Poland Processed crude (tt) 3 480 3 656 3 836 10% 5% 6 781 7 492 10% Utilisation 85% 90% 94% 9 pp 4 pp 86% 92%
Slide 34: 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 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: 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] 36