ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q1 2013 Earnings Presentation
36 slides from ORLEN Spolka Akcyjna's earnings presentation, Apr 25, 2013
Slide 1: PKN ORLEN consolidated financial results 1Q13
PKN ORLEN consolidated financial results 1Q13 Jacek Krawiec, CEO Sławomir Jędrzejczyk, CFO 25 April 2013 1
Slide 2: Agenda
Agenda 1Q13 highlights Macroeconomic environment Financial and operating results in 1Q13 Liquidity Efficiency and growth Summary 2
Slide 3: 1Q13 highlights
1Q13 highlights External environment Operational activity Improvement in refining and petrochemical margins EBITDA LIFO higher by over PLN 150 m (y/y): increase in petchem results, higher utilization in Tough market environment: economy slowdown and ORLEN Lietuva significant drop in fuel consumption
Slide 4: Agenda
Agenda 1Q13 highlights Macroeconomic environment Financial and operating results in 1Q13 Liquidity Efficiency and growth Summary 4
Slide 5: Macro environment in 1Q13 (y/y)
Macro environment in 1Q13 (y/y) Crude oil price decrease Increase in refining margin and U/B differential Average Brent Crude Oil price, USD/bbl Model refining margin and Brent/Ural differential, USD/bbl differential margin - 6 USD/bbl + 1,2 USD/bbl 119 110 110 113 9,1 108 8,9 2,1 0,7 5,5 5,8 4,6 1,
Slide 6: Further drop in fuel consumption on Polish market
Further drop in fuel consumption on Polish market GDP increase1 Fuel consumption (diesel, gasoline)2 Change (%) to respective quarter of last year mt 1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 1Q13 1Q12 1Q13 - 2% 3,5 - 9% 2,3 2,58 2,53 1,3 0,7 0,6÷1,2 0,87 0,79 Poland - 3% - 8% 7,96 7,71 1,7 4,54 4,19 0,5 0,4 0,
Slide 7: Agenda
Agenda 1Q13 highlights Macroeconomic environment Financial and operating results in 1Q13 Liquidity Efficiency and growth Summary 7
Slide 8: EBITDA LIFO improvement by over PLN 150 m (y/y)
EBITDA LIFO improvement by over PLN 150 m (y/y) PLN m 1Q12 4Q12 1Q13 Revenues lower by (-) 6% (y/y) mainly due to sale of obligatory reserves in 1Q12 that - 6% increased revenues from sales of 29 248 31 245 27 472 merchandise. Revenues EBITDA LIFO increase by PLN 0,2 bn (y/y) + 0,2 bn due to increas
Slide 9: EBITDA improvement due to petrochemicals in 1Q2013 (y/y)
EBITDA improvement due to petrochemicals in 1Q2013 (y/y) 1Q12 4Q12* 1Q13 change y/y PLN m 3M12 3M13 change 780 351 932 19% EBITDA LIFO 780 932 19% 1 518 -162 879 -42% EBITDA 1 518 879 -42% 309 -113 276 -11% Refining LIFO 309 276 -11% 993 -600 207 -79% Refining 993 207 -79% 115 190 123 7% Retail 115
Slide 10: Sales volumes increase by 4%
Sales volumes increase by 4% kt 1Q12 4Q12 1Q13 + 4% Refining sales volumes increase by 9% (y/y) due to higher utilisation ratio in Lithuania. 8 224 9 283 8 584 Sales volumes Retail sales volumes decrease by (-) 4% (y/y) in all markets due to weakening + 9% consumption. Main decline on Polish market
Slide 11: Crude oil throughput increase by 5% (y/y)
Crude oil throughput increase by 5% (y/y) Crude oil throughput Utilisation ratio mt % PKN ORLEN Unipetrol ORLEN Lietuva + 5% 100 98 98 7,4 7,5 100 94 93 6,7 7,0 90 6,4 90 97 86 79 79 92 80 86 80 70 71 57 1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 Fuel yield Comments % Plock refinery: decrease
Slide 12: Agenda
Agenda 1Q13 highlights Macroeconomic environment Financial and operating results in 1Q13 Liquidity Efficiency and growth Summary 12
Slide 13: Financial safety
Financial safety Net debt Financial ratios PLN bn + 1,8 mld Optimal range 1Q13 8,2 8,6 7,1 6,8 Financial gearing 20% - 40% 26,9% 5,9 Net debt / EBITDA* 1,0 - 2,0 1,94 Net debt / EBITDA LIFO* 1,0 - 2,0 1,59 1Q12 2Q12 3Q12 4Q12 1Q13 Net debt increase by PLN 1,8 bn (q/q) mainly due to repurchase of the
Slide 14: Cash flow in 1Q13
Cash flow in 1Q13 Cash flow from operations Cash flow from investments PLN bn PLN bn Working capital change by PLN (-) 2,1 bn 0,8 0,3 -0,1 -1,3 -0,3 -0,3 -0,3 -0,2 -1,3 -0,1 Net inflow Repurchase VAT - VAT - Others Net outflow CAPEX Liabilities Return of Net outflow before of obligatory repurchase s
Slide 15: Agenda
Agenda 1Q13 highlights Macroeconomic environment Financial and operating results in 1Q13 Liquidity Efficiency and growth Summary 15
Slide 16: Investment projects realization in 1Q13
Investment projects realization in 1Q13 CAPEX Main segments PLN bn 9 306 Refining – building of Flue Gas Desulphurization Unit started. 55 Total cost will amount to over PLN 400 m. Giving into operations 45 at the end of 2015. The result of using of new technological 44 solutions will be reduction o
Slide 17: Upstream
Upstream Current portfolio and strategic assumptions Unconventional projects Unconventional projects - 10 exploration concessions / ca. 9 th In 1Q13 vertical well was started and was finished at the beginning of km2 2Q13. Moreover 2 new exploration concessions acquired (Wolomin and Conventional proj
Slide 18: Agenda
Agenda 1Q13 highlights Macroeconomic environment Financial and operating results in 1Q13 Liquidity Efficiency and growth Summary 18
Slide 19: 1Q13 summary
1Q13 summary Shareholders Value creation (Systematic dividend yield increase up to 5%) (EBITDA LIFO increase) PLN 1,5 per share – BoD recommendation for EBITDA LIFO: PLN 0,9 bn; increase by 20% (y/y) dividend payout from 2012 profit Direct contract with Rosneft for crude oil purchase 3,8% dividend y
Slide 20: 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] 20
Slide 21: Agenda: Supporting slides
Agenda Supporting slides 21
Slide 22: PKN ORLEN: Operational results under strong impact of inventories valuation
PKN ORLEN Operational results under strong impact of inventories valuation PLN, m PLN -639 m 1.600 1.518 1.400 1.200 398 40 1.000 879 800 -286 600 -791 400 200 0 EBITDA 1Q12 Inventory valuation Macro Volumes Other EBITDA 1Q13 Negative impact of crude oil price changes on inventory valuation (y/y) ma
Slide 23: Refining segment
Refining segment Better macro and higher volumes offset by inventories valuation impact PLN, m PLN -786 m 993 1.000 900 800 700 600 79 500 182 400 300 207 200 -753 -294 100 0 EBITDA 1Q12 Inventory valuation Macro Volumes Other EBITDA 1Q13 Negative impact of crude oil price changes on inventory valua
Slide 24: Retail segment
Retail segment Sales under decreasing consumption PLN, m PLN +8 m 140 14 10 123 120 115 3 100 -19 80 60 40 20 0 EBITDA 1Q12 Fuel margins Volumes Non-fuel sales Other EBITDA 1Q13 Gradual retail margins improvement on Polish market at maintaining pressure on retail margins on German and Czech markets.
Slide 25: Petrochemical segment
Petrochemical segment Favourable macro environment limited by volumes decrease PLN, m PLN +149 m 800 216 694 700 -20 -9 600 545 500 -38 400 300 200 100 0 EBITDA 1Q12 Inventory valuation Macro Volumes Other EBITDA 1Q13 Improvement of margins mainly in polymers and monomers. Lower volumes of olefins a
Slide 26: Main P&L elements split by key companies in 1Q13
Main P&L elements split by key companies in 1Q13 ORLEN Others and PKN PKN PKN ORLEN 3) Change IFRS, PLN m Unipetrol 3) consolidation ORLEN ORLEN S.A. Lietuva y/y corrections 1Q13 1Q12 Revenues 20 205 4 029 7 101 -3 863 27 472 29 248 -6% EBITDA LIFO 547 71 124 190 932 780 19% EBITDA 490 88 106 195 87
Slide 27: EBITDA split by segment and key companies in 1Q2013
EBITDA split by segment and key companies in 1Q2013 Others and PKN PKN PKN ORLEN 4) ORLEN Change IFRS, PLN m Unipetrol 4) consolidation ORLEN ORLEN S.A. Lietuva y/y corrections 1Q13 1Q12 EBITDA LIFO 547 71 124 190 932 780 19% EBITDA 490 88 106 195 879 1 518 -42% Refining LIFO 176 -57 149 8 276 309 -
Slide 28: EBIT split by segment and key companies in 1Q2013
EBIT split by segment and key companies in 1Q2013 Pozostałe i PKN PKN PKN ORLEN 4) ORLEN Zmiana wg MSSF, mln PLN Unipetrol 4) korekty ORLEN ORLEN S.A. Lietuva r/r konsolidacyjne 1Q13 1Q12 EBIT LIFO 296 -26 31 93 394 201 96% EBIT 239 -9 13 98 341 939 -64% Refining LIFO 75 -79 61 -22 35 48 -27% 1) Ref
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 1Q12 4Q12 1Q13 IFRS, USD m 3M12 3M13 change y/y 1930 2360 2257 17% Revenues 1 930 2 257 17% 5 52 39 680% EBITDA LIFO 5 39 680% 52 39 33 -37% EBITDA 52 33 -37% 35 21 16 -54% EBIT 35 16 -54% 36 37 -1 - Net result 36 -1 - EBITDA L
Slide 30: UNIPETROL Group Key elements of the profit and loss account
UNIPETROL Group Key elements of the profit and loss account 1 change 1Q12 4Q12 1Q13 IFRS, CZK m 3M12 3M13 change y/y 25 421 26 292 24 776 -3% Revenues 25 421 24 776 -3% 40 -3 453 438 995% EBITDA LIFO 40 438 995% 692 -3 783 540 -22% EBITDA 692 540 -22% -79 -4 468 -70 11% EBIT -79 -70 11% -363 -3 100
Slide 31: Macro environment in 2Q13 (q/q)
Macro environment in 2Q13 (q/q) Crude oil price decrease Increase in refining margin and U/B differential Average Brent Crude Oil price, USD/bbl Model refining margin and Brent/Ural differential, USD/bbl differential margin - 11 USD/bbl + 1,9 USD/bbl 8,9 9,1 119 113 108 110 110 102 0,7 7,7 2,1 5,5 5
Slide 32: Macro environment in 2013
Macro environment in 2013 14 12 ORLEN Group model refining margin 2012 average 2013 2013 average 2012 10 8 5,7 USD/bbl 6 4,4 USD/bbl 4 2 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 1,8
Slide 33: Production data
Production data change change Production 1Q12 4Q12 1Q13 (y/y) (q/q) Total crude oil throughput in PKN ORLEN (tt) 6 655 7 491 7 003 5% -7% Refinery in Poland 1 Processed crude (tt) 3 656 3 940 3 504 -4% -11% Utilisation 90% 97% 86% -4 pp -11 pp Fuel yield 4 78% 77% 75% -3 pp -2 pp M iddle distillates
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