ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q1 2012 Earnings Presentation
36 slides from ORLEN Spolka Akcyjna's earnings presentation, Apr 25, 2012
Slide 1: Safe financial position in a volatile macro environment
Safe financial position in a volatile macro environment PKN ORLEN consolidated financial results for 1 quarter 2012 Jacek Krawiec, CEO Sławomir Jędrzejczyk, CFO 25 April 2012 1
Slide 2: Agenda
Agenda Achievements in 1Q 2012 Macroeconomic environment Financial and operating results in 1Q 2012 Liquidity Upstream and energy Summary 2
Slide 3: PKN ORLEN achievements in 1Q 2012
PKN ORLEN achievements in 1Q 2012 Financial parameters Over PLN 900 m of operating profit. Volatile macro environment: increase in crude oil price by 13% (y/y). increase in model refining margin and U/B differential by 0,2 USD/bbl (y/y) to 4,6 USD/bbl. decrease in petrochemical margin by (-) 133 EUR
Slide 4: Agenda
Agenda Achievements in 1Q 2012 Macroeconomic environment Financial and operating results in 1Q 2012 Liquidity Upstream and energy Summary 4
Slide 5: Unstable macro environment in 1Q 2012 (y/y)
Unstable macro environment in 1Q 2012 (y/y) Crude oil price increase by 13% Increase in total of refining margin and U/B diff by 5% Average Brent Crude Oil price, USD/bbl Model refining margin and Ural/Brent differential, USD/bbl differential margin + 14 USD/bbl + 0,2 USD/bbl 117 113 109 119 105 4,4
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 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 1Q12 1Q11 1Q12 - 4% 4,4 4,3 4,2 4,4 - 1% 2,2-2,8 2,75 2,63 Poland 0,89 0,88 + 1% 4,6 - 5% 7,52 7,61 2,9 2,7 2,
Slide 7: Agenda
Agenda Achievements in 1Q 2012 Macroeconomic environment Financial and operating results in 1Q 2012 Liquidity Upstream and energy Summary 7
Slide 8: Over PLN 29 bn of revenues
Over PLN 29 bn of revenues PLN m 1Q11 4Q111) 1Q12 Increase of revenues by 29% (y/y) as a result of higher sales volumes, higher + 29% crude oil prices and weakening of PLN 29 976 29 248 against foreign currencies. Revenues 22 674 Decrease of operating profit according - 0,2 bn to LIFO by PLN (-) 0,2
Slide 9: Over PLN 900 m of operating profit
Over PLN 900 m of operating profit 1Q11 4Q111) 1Q12 change y/y PLN m 3M11 3M12 change y/y 1 893 -425 1 518 -20% EBITDA 1 893 1 518 -20% 1 339 -1 060 939 -30% EBIT, of which: 1 339 939 -30% 450 -1 719 201 -55% EBIT according to LIFO 450 201 -55% 1 028 233 732 -29% Refining 1 028 732 -29% 185 -408 48
Slide 10: Retail sales volumes increase and record high petrochemical sales volumes
Retail sales volumes increase and record high petrochemical sales volumes kt 1Q11 4Q11 1Q12 + 2% Total sales volumes in 1q12 increased 9 153 by 2% (y/y) to 8,2 mt. 8 070 8 224 Sales volumes Refining sales volumes decreased by (-) 2% (y/y) due to remaining high crude oil prices influencing fuel price
Slide 11: Crude oil throughput increase by 4% (y/y) despite tough market environment
Crude oil throughput increase by 4% (y/y) despite tough market environment Crude oil throughput Utilisation ratio mt % 100 97 + 4% 94 7,4 96 90 90 6,8 7,2 6,7 90 87 87 6,4 85 85 79 79 80 83 74 71 69 70 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 Fuel yield Comments % Crude oil throughput incre
Slide 12: Agenda
Agenda Achievements in 1Q 2012 Macroeconomic environment Financial and operating results in 1Q 2012 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 Further debt reduction to PLN 7,1 bn and financial gearing to 26,9%. - 1,4 bn Covenant net debt / EBITDA at the level of 1,65. 8,5 9,3 7,9 7,6 7,1 Issue of 7-year b
Slide 14: PLN 1,7 bn of cash flow from operations before working capital change
PLN 1,7 bn of cash flow from operations before working capital change 1Q11 4Q11 1Q12 change y/y PLN m 3M11 3M12 change y/y Cash flow from operations 1 928 1 313 1 676 -252 1 928 1 676 -252 before working capital change -1 070 -1 697 -1 428 -358 Working capital change without initiatives -1 070 -1 42
Slide 15: Agenda
Agenda Achievements in 1Q 2012 Macroeconomic environment Financial and operating results in 1Q 2012 Liquidity Upstream and energy Summary 15
Slide 16: Upstream: Shale gas – realization of exploratory projects
UPSTREAM Shale gas – realization of exploratory projects PKN ORLEN has 8 licenses for shale gas Status of projects exploration in Poland Lublin Shale project: 2 first vertical wells on Wierzbica and Lubartów licenses are finished. 2-7 wells (including up to 2 horizontal) are planned in 2012. Wierzbi
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 together with Kuwait Energy. 2 exploration and upstream licenses. Maximum 2 drills are planned in 2012. Status of project: Analysis of acquired 3D seismic data and choice of drills’ l
Slide 18: Energy: New projects and improvement of efficiency of assets held
ENERGY New projects and improvement of efficiency of assets held 1. Building of gas power plant to 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 agreemen
Slide 19: Agenda
Agenda Achievements in 1Q 2012 Macroeconomic environment Financial and operating results in 1Q 2012 Liquidity Upstream and energy Summary 19
Slide 20: Summary
Summary Achievements in volatile environment Over PLN 29 bn of revenues; increase by 29% (y/y). Over PLN 900 m of operating profit. 8,2 mt sales volumes; increase by 2% (y/y) due to higher retail sales and record high petrochemical sales. Safe financial position Further debt reduction to PLN 7,1 bn
Slide 21: Thank You for Your attention
Thank You for Your attention For more information on PKN ORLEN, please contact Investor Relations Department: telephone: + 48 24 256 81 80 fax: + 48 24 367 77 11 e-mail: [email protected] www.orlen.pl 21
Slide 22: Supporting slides
Agenda Supporting slides 22
Slide 23: Effect of higher volumes overweight negative impact of the environment
PKN ORLEN Effect of higher volumes overweight negative impact of the environment PLN m -400 mln PLN 1.400 1.339 481 1.200 -151 1.000 939 -402 800 -328 600 400 200 0 EBIT 1Q’11 Inventory valuation Macro Volumes Other EBIT 1Q’12 Effect of higher sales volumes exceeded negative impact of changes in inv
Slide 24: Refining segment
Refining segment Unfavorable impact of though macro environment and legislation changes PLN m 1.200 - 296 mln PLN 1.028 167 1.000 800 -159 732 -51 -253 600 400 200 0 EBIT 1Q’11 Inventory valuation Macro Volumes Other EBIT 1Q’12 Negative impact of crude oil price changes and macroeconomic factors mai
Slide 25: Retail segment
Retail segment Increase in retail sales by 8% (y/y) and market share PLN m 0 mln PLN 70 21 60 50 28 40 30 26 26 20 -43 -6 10 0 EBIT 1Q’11 Fuel margins Volumes Non-fuel sales Other EBIT 1Q’12 Pressure on margins due to high crude oil prices and in consequence fuel prices Increase in sales volumes of
Slide 26: Petrochemical segment
Petrochemical segment Record high sales offset negative impact of macro environment PLN m -39 mln PLN 450 8 286 400 385 350 346 -56 300 250 200 150 100 -277 50 0 EBIT 1Q’11 Inventory valuation Macro Volumes Other EBIT 1Q’12 Low petrochemical margins since 2H11. Increase in sales achieved mainly due
Slide 27: Main P&L elements breakdown by key companies in 1Q2012
Main P&L elements breakdown by key companies in 1Q2012 ORLEN Others and ORLEN ORLEN PKN ORLEN 3) IFRS, PLN m Unipetrol 3) consolidation Group Group Change (unconsolidated) Lietuva corrections 1Q'12 1Q'11 Revenues 22 135 4 290 6 241 -3 418 29 248 22 674 29% EBITDA 933 122 167 296 1 518 1 893 -20% Dep
Slide 28: Operating results breakdown by key segments and companies in 1Q2012
Operating results breakdown by key segments and companies in 1Q2012 Others and ORLEN ORLEN PKN ORLEN 4) ORLEN IFRS, PLN m (unconsolidated) Unipetrol 4) consolidation Group Group Change Lietuva corrections 1Q'12 1Q'11 EBIT 670 -8 73 204 939 1 339 -30% EBIT acc. to LIFO 217 -119 -80 183 201 450 -55% 1
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 change 1Q11 4Q11 1Q12 IFRS, USD m 3M11 3M12 y/y y/y 1 754 2 096 1 930 10% Revenues 1 754 1 930 10% 73 0 52 -29% EBITDA 73 52 -29% 53 -19 35 -34% EBIT 53 35 -34% -18 -12 -13 28% EBIT acc. to LIFO -18 -13 28% 52 -28 36 -31% Net r
Slide 30: UNIPETROL Group Key elements of the profit and loss account
UNIPETROL Group Key elements of the profit and loss account 1 change change 1Q11 4Q11 1Q12 IFRS, CZK m 3M11 3M12 y/y y/y 23 088 24 327 25 449 10% Revenues 23 088 25 449 10% 1 379 -5 159 720 -48% EBITDA 1 379 720 -48% 571 -5 935 -51 - EBIT 571 -51 - 4 -6 159 -703 - EBIT acc. to LIFO 4 -703 - 464 -6 2
Slide 31: Macro environment in 2Q 2012
Macro environment in 2Q 2012 10 PKN ORLEN Group model refining margin 2011 average 2012 2012 average 2011 8 6 4 3,9 USD/bbl 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 1,7
Slide 32: Macro environment in 2Q 2012
Macro environment in 2Q 2012 Crude oil price increase Increase 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 + 1 USD/bbl differential margin + 5,7 USD/bbl 117 113 119 120 109 10,3 3,4 4,3 4,6 3,4 3,1 1,3 6,9
Slide 33: Key production data
Key production data change change change Key production data 1Q11 4Q11 1Q12 (y/y) (q/q) 3M10 3M11 (y/y) 1 Refinery in Poland Processed crude (tt) 3 301 3 814 3 656 11% -4% 3 301 3 656 11% Utilisation 87% 94% 90% 3 pp -4 pp 87% 90% 3 pp 4 Fuel yield 79% 76% 78% -1 pp 2 pp 79% 78% -1 pp 5 Middle disti
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: For more information on PKN ORLEN, please contact Investor Relations
For more information on PKN ORLEN, please contact Investor Relations Department: telephone: + 48 24 256 81 80 fax + 48 24 367 77 11 e-mail: [email protected] www.orlen.pl 36