ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q2 2015 Earnings Presentation
36 slides from ORLEN Spolka Akcyjna's earnings presentation, Jul 23, 2015
Slide 1: PKN ORLEN consolidated financial results for 2Q15
PKN ORLEN consolidated financial results for 2Q15 Sławomir Jędrzejczyk, CFO Rafał Warpechowski, Executive Director of Planning and Reporting Dariusz Grębosz, Head of Investor Relations #ORLEN2Q15 23 July 2015 @PKN_ORLEN
Slide 2: Agenda
Agenda 2Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 2
Slide 3: 2Q15 - key highlights
2Q15 - key highlights Value creation Financial strength EBITDA LIFO*: PLN 2,9bn Cashflow from operations: PLN 2,7bn 8,1mt crude oil throughput and sales increase by 15% (y/y) Financial gearing: 19,8% Acquisition of 32% stake in Ceska Rafinerska by Unipetrol Dividend: PLN 1,65 per share paid on 8 Jul
Slide 4: Agenda
Agenda 2Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 4
Slide 5: Macro environment in 2Q15 (y/y)
Macro environment in 2Q15 (y/y) Downstream margin increase Product slate of downstream margin Model downstream margin, USD/bbl Crack margins Refining products (USD/t) 2Q14 1Q15 2Q15 ∆ (r/r) +4,7 USD/bbl Diesel 91 123 116 27% Gasoline 195 140 215 10% 15,1 HHO -254 -133 -147 42% 12,9 12,6 12,6 10,4 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 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 2Q15 2Q14 2Q15 + 3% 0% 3,6 3,3 3,3 3,6 3,5 ÷ 3,8 2,74 2,83 0,93 0,94 Poland 0% 0% 8,88 8,88 1,0 1,2 1,6 1,1 1,0 ÷ 1,5 4,68 4,69 Germ
Slide 7: Agenda
Agenda 2Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 7
Slide 8: Financial results in 2Q15
Financial results in 2Q15 2Q14* 1Q15 2Q15** PLN m 6M14* 6M15** - 14% -15% Revenues: decrease by (-) 14% (y/y) as a result of drop in crude oil prices partially offset by higher 28 651 24 776 52 770 44 781 sales volumes 20 005 Revenues + 2,0 bn + 3,0 bn EBITDA LIFO: increase by PLN 2,0 bn (y/y) due t
Slide 9: EBITDA LIFO - result increase by PLN 2,0 bn (y/y)
EBITDA LIFO - result increase by PLN 2,0 bn (y/y) Positive impact of: Segments’ results in 2Q15 PLN m Downstream margin increase by 4,7 USD/bbl (y/y) 343 13** 2 887** Weakening of PLN against USD by 22% (y/y) 2 703 -172 Crude oil throughput increase by 26% (y/y) due to higher utilization ratios in a
Slide 10: Downstream – EBITDA LIFO PLN 2,7 bn
Downstream – EBITDA LIFO PLN 2,7 bn as a result of good macro and higher sales (y/y) EBITDA LIFO quarterly (without impairments*) PLN m + Downstream margin increase by 4,7 USD/bbl (y/y) as a result of lower crude oil prices and margins improvement on products: 3 000 2 703 diesel, gasoline, HHO, SN15
Slide 11: Downstream – operational data
Downstream – operational data Sales increase in all markets in total by 18% (y/y) Sales volumes Utilization ratio mt % + 18% 8 7,9 Refineries 2Q14 1Q15 2Q15 ∆ (y/y) 7,6 7,6 7,4 7,5 Plock 79% 87% 100% 21 pp 7,3 Unipetrol 90% 84% 95% 5 pp 7,2 7 6,9 ORLEN Lietuva 72% 70% 86% 14 pp 6,8 6,8 6,6 6,5 Petro
Slide 12: Downstream Energy projects realization (industry cogeneration)
Downstream Energy projects realization (industry cogeneration) Strategic assumptions Building a CCGT plant in Wloclawek (463 MWe) Industry cogeneration projects – with the highest profitability / the In 2Q15 assembly works of steam turbine pipes and auxiliary lowest risk , thanks to guarantee of per
Slide 13: Retail – EBITDA LIFO
Retail – EBITDA LIFO Very good result despite lower fuel margins (y/y) EBITDA LIFO quarterly (without impairments*) PLN m + Total sales volumes increase by 1% (y/y) 500 451 441 379 Market share increase in Poland and the Czech Rep. (y/y) 369 400 341 360 325 359 343 283 Improvement of fuel margins (y
Slide 14: Retail – operational data
Retail – operational data Sales increase by 1% (y/y) and further growth of non-fuel offer Sales volumes Number of petrol stations and market shares (by volume) mt #, % 2,5 + 1% 2,1 2,1 2,0 2,0 2,0 2,0 2,0 1,9 1,9 1,9 1,9 1,8 1,7 1,8 1,7 1,5 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 Number of Stop Cafe and
Slide 15: Upstream Exploration projects in Poland
Upstream Exploration projects in Poland Unconventional projects Poland Conventional projects Conventional projects Project Sieraków In 2Q15 partial area development study and continuation of data analysis to assess area prospects and update schedule works was 1 1 2 1 1 1 2 done Wołomin 1 Project Kar
Slide 16: Upstream Production projects in Canada - ORLEN Upstream 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) 2Q15 In 2Q15 works on building a gas processing unit w
Slide 17: Agenda
Agenda 2Q15 - key highlights Macroeconomic environment Financial and operating results Liquidity and investments Market outlook for 2015 17
Slide 18: Cash flow
Cash flow PLN 2,7 bn cash flow from operations Cash flow from operations Cash flow from investments PLN bn PLN bn 2,9 0,2 2,7 0,0 -0,4 -0,6 -0,2 -0,8 EBITDA LIFO effect Working capital Others Net inflow CAPEX Change of Net outflow LIFO change from investments from operations payables/inflows investm
Slide 19: Safe level of indebtedness and financial leverage
Safe level of indebtedness and financial leverage Net debt and gearing Net debt/EBITDA LIFO ratio PLN bn, % Financial gearing, % 3,5 33,0 3,0 28,5 28,9 2,5 25,9 2,0 1,76 19,8 1,52 1,51 1,5 1,29 6,3 6,7 6,2 5,9 4,4 1,0 1,16 0,53 0,5 0,0 2Q14 3Q14 4Q14 1Q15 2Q15 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 Diversifi
Slide 20: Capital expenditures
Capital expenditures Planned CAPEX in 2015 Realized CAPEX 6M15 – split by segment PLN bn, % PLN m 3,8 64 1165 97 150 Downstream 66% 5,8 Retail 854 9% Growth 2,5 5,1 Energy* 464 25% Maintenance Petrochemicals 138 1,3 Upstream and regulatory Refining 252 CAPEX Downstream Retail Upstream Corporate CAPE
Slide 21: Agenda
Agenda 2Q15 - 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 stabilization of crude oil prices GDP – expected level of 3,6% in 2015 and 3,4% in 2016 - NBP at the current levels. Crude oil price also depends on geopolitical (July 2015) risks 3,6%* 2,6%*
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 (before impairments)
Results – split by quarters (before impairments) PLN, m 2Q14* 1Q15 2Q15** ∆ y/y 6M14* 6M15** ∆ Revenues 28 651 20 005 24 776 -14% 52 770 44 781 -15% EBITDA LIFO 856 1 899 2 887 237% 1 824 4 786 162% Effect LIFO -147 -237 169 - -324 -68 79% EBITDA 709 1 662 3 056 331% 1 500 4 718 215% Depreciation -5
Slide 26: Results – split by segments (before impairments)
Results – split by segments (before impairments) 2Q14* Corporate Downstream* Retail Upstream Total PLN, m Functions EBITDA LIFO 612 359 27 -142 856 Effect LIFO -147 - - - -147 EBITDA 465 359 27 -142 709 Depretiation -393 -85 -20 -26 -524 EBIT 72 274 7 -168 185 EBIT LIFO 219 274 7 -168 332 2Q15** Cor
Slide 27: EBITDA LIFO – split by segments (before impairments)
EBITDA LIFO – split by segments (before impairments) PLN, m 2Q14* 1Q15 2Q15** ∆ y/y 6M14* 6M15** ∆ Downstream* 612 1 741 2 703 342% 1 445 4 444 208% Retail 359 283 343 -4% 596 626 5% Upstream** 27 14 13 -52% 58 27 -53% Corporate functions -142 -139 -172 -21% -275 -311 -13% EBITDA LIFO 856 1 899 2 88
Slide 28: Results - split by companies (before impairments)
Results - split by companies (before impairments) Others and 2Q15* ORLEN consolidation PLN, m PKN ORLEN S.A. Unipetrol 2) Lietuva 2) corrections Total Revenues 17 230 4 865 4 630 -1 949 24 776 EBITDA LIFO 1 371 591 515 410 2 887 LIFO effect1) 94 91 -21 5 169 EBITDA 1 465 682 494 415 3 056 Depreciati
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 2Q14 2Q14* 1Q15 2Q15 ∆ y/y 6M14 6M14* 6M15 ∆ Revenues 1 701 1 701 876 1 252 -26% 2 985 2 985 2 128 -29% EBITDA LIFO -1 376 0 101 134 - -1 397 -21 235 - EBITDA -1 368 8 83 134 1575% -1 397 -21 217 - EBIT -1 398 -22 81 131 - -1 456
Slide 30: UNIPETROL Group Key elements of the profit and loss account
UNIPETROL Group Key elements of the profit and loss account CZK m 2Q14 2Q14* 1Q15 2Q15 ∆ y/y 6M14 6M14* 6M15 ∆ Revenues 32 440 32 440 23 975 32 523 0% 61 249 61 249 56 498 -8% EBITDA LIFO -3 695 1 026 3 111 3 959 286% -1 825 2 896 7 070 144% EBITDA -3 558 1 163 2 897 4 567 293% -1 820 2 901 7 464 15
Slide 31: Macro environment in 3Q15 (q/q)
Macro environment in 3Q15 (q/q) Downstream margin increase Product slate of downstream margin Model downstream margin, USD/bbl Crack margins Refining products (USD/t) 3Q14 2Q15 3Q15* ∆ (q/q) ∆ (y/y) +1,6 USD/bbl Diesel 111 116 103 -11% -7% Gasoline 193 215 268 25% 39% 16,7 15,1 HHO -215 -147 -144 2%
Slide 32: Macro environment in 3Q15 (q/q)
Macro environment in 3Q15 (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 + 140 EUR/t 12,9 1.175 11,3 1,2 1.035 9,2 1,5 1,7 844 6,6 6,5 782
Slide 33: Production data
Production data 2Q14 1Q15 2Q15 ∆ (y/y) ∆ (q/q) 6M14 6M15 ∆ Total crude oil throughput in PKN ORLEN 6 480 6 652 8 149 26% 23% 12 670 14 801 17% Utilization in PKN ORLEN 80% 82% 95% 15 pp 13 pp 79% 89% 10 pp Refinery in Poland 1 Processed crude (tt) 3 232 3 533 4 058 26% 15% 6 735 7 591 13% Utilizatio
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