Gazprom Neft · RUS:SIBN
Gazprom Neft — Q2 2009 Earnings Presentation
26 slides from Gazprom Neft's earnings presentation, Sep 9, 2009
Slide 1: 2Q 2009 US GAAP Financial and Operating Results
2 Q 2009 US GAAP Financial and Operating Results September 9, 2009
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gazprom Neft and its consolidated subsidiaries. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements
Slide 3: Management Participants in Today's Call
Management Participants in Today’s Call Vadim Yakovlev Deputy Chairman of the Management Board and CFO Boris Zilbermints Deputy Chairman of the Management Board, Deputy CEO for Exploration and Production Anatoly Cherner Deputy Chairman of the Management Board, Deputy CEO for Refining and Marketing Y
Slide 4: 2Q and 1H 2009 Highlights
2 Q and 1H 2009 Highlights • Increase in Daily Production +2,9% in 2Q 2009 • Rebranding program launched - 230 new style stations by the end of 2009 • Consolidation of Sibir Energy • Consolidation of Moscow Refinery • Acquisition of Chelyabinsk region retail chain (+ 41 gas stations and 2 tank farms
Slide 5: Key macroeconomic factors: crude pricing environment is steadily improving
Key macroeconomic factors: crude pricing environment is steadily improving Crude pricing, RUR/USD Rate (eop) Crude Export Profitability (per bbl) 160 40 $160 Urals, $/bbl (lhs) RUR/$ rate (rhs) $140 140 35 117,4 Urals down 50% $120 120 30 $100 $80 100 25 Netback less MET 58,5 $60 down 42% 80 20 $40
Slide 6: Key macroeconomic factors: crude exports netback outperformed refining netbacks in 1H09
Key macroeconomic factors: crude exports netback outperformed refining netbacks in 1H09 72,5 66,7 Refining netback, $/bbl 62,1 63,4 Crude exports netback, $/bbl 60,7 CIS crude exports netback, $/bbl 41.2% 18.7% 8% 42.3% 21.2% 9% 35,2 33,5 24,3 32,2 23,8 30,9 29,5 22,5 21,6 21,7 ONPZ MNPZ YANOS ONPZ
Slide 7: Gazprom Neft's Key Financials, $ mln
Gazprom Neft’s Key Financials, $ mln (48%) (48%) • Oil price fluctuations drove 24% $18 002 Revenues up Q-o-Q and down Y- o-Y $9 957 $10 085 $9 365 Revenues* $4 988 $5 180 • High Refining share in crude $4 185 balance constrained quarterly revenue growth 2Q08 3Q08 4Q08 1Q09 2Q09 1H08 1H09 (53%) (55%
Slide 8: Operating Results
6 GAZPROM NE F T Operating Results
Slide 9: Operational Performance
Operational Performance Crude output (MM Tonnes) Refining (MM Tonnes) 3,6% (0,9%) 8,0% 14,1% 11,0 11,4 11,5 0.3 7,5 8,1 7,1 1,3 1,4 1,3 2,4 0.8 0,8 2,2 2,3 0,6 0,2 1,7 1,6 0,2 0,8 1,6 0,6 7,3 7,4 7,7 4,4 4,9 4,9 1Q09 2Q09 2Q08 1Q09 2Q09 2Q08 Ow n Production NIS Slavnef t* Tomsknef t* Sibir Energy Om
Slide 10: Upstream: core assets daily output is surprising on the upside
Upstream: core assets daily output is surprising on the upside 89 August average – 87 83 317 tonnes/day January average – June average – 85 81 282 tonnes/day 82 567 tonnes/day March average – 83 80 273 tonnes/day 81 79 77 75 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Source: Company data 10
Slide 11: Oilfield Development
Oilfield Development Production Drilling (Th. Meters) 638 575 524 494 434 2Q08 3Q08 4Q08 1Q09 2Q09 Number of New Wells Launched* 171 178 151 160 122 55,4 55,7 54,2 53,4 51,1 2Q08 3Q08 4Q08 1Q09 2Q09 Average flow at new wells, Tonnes per day Gazprom Neft Production by Field* 1Q09 2Q09 • Quarterly Org
Slide 12: Refineries complexity
Refineries complexity Refining Conversion Ratio, % 100 Omsk • Omsk refinery tends to be one of the most 95 technologically advanced in Russia 90 Moscow 85 Yanos • High gasoline and light products yield favors 80 Gazprom Neft in case of equalization of export duty for heavy and light products 75 70 •
Slide 13: Oil Products Marketing expansion
Oil Products Marketing expansion Oil Products Sales in Russia (MM Tonnes) Sales regions 4,4 4,4 New assets -1H 2009 4,1 4,0 3,6 Murmansk 2Q08 3Q08 4Q08 1Q09 2Q09 Ust-Luga Archangelsk Oil Products Sales Through premium channels (MM Tonnes) Belorussia 1,3 1.1 1,1 1,0 0,9 Khabarovsk 0,5 0,4 0,4 0,3 Ita
Slide 14: Rebranding campaign
Rebranding campaign Retail – Most Efficient Downstream Segment • 45 filling stations are operating under new style; rebranding activity is on the way on 43 stations • In 2009 a new brand is to be introduced at 230 fuelling facilities operating currently under different brands • By the end of 2011 th
Slide 15: Financial Results
6 GAZPROM NE F T Financial Results
Slide 16: Sales breakdown
Sales breakdown Revenue Breakdown 1Q09 Revenue Breakdown 2Q09 4% Crude Export 3% 32% Crude CIS 35% Crude domestic Products export 1% 29% 29% 0% Products CIS 3% Products domestic 4% Gas 0% 1% 0% Other 2% 30% 27% 1Q09 2Q09 Change, % Total revenues 4 185 5 180 24% Crude export 1 231 1 410 15% Crude CIS
Slide 17: Taxes: Gazprom Neft benefited from lagging export duties and reduced MET
Taxes: Gazprom Neft benefited from lagging export duties and reduced MET Duty lagging effect gaining ground in 2Q08 & 2Q09, $/t Actual MET vs. “OLD” MET, per bbl $30 700 +/- Actual duty Theoretical duty 600 $25 500 $20 400 $15 300 $10 200 $5 100 +/- MET Old MET 0 $0 Jan-08 Apr-08 Jul-08 Oct-08 Jan-0
Slide 18: Costs under control
Costs under control Unit costs dynamics, $/bbl Absolute costs dynamics, $ mln 7,0 6,83 6,5 6,00 5,80 1Q09 2Q09 2Q09A* QoQ QoQA* 6,0 5,33 5,91 5,5 5,24 Operating: 387 427 10% -1% 4,80 5,13 385 5,0 5,15 4,56 4,5 4,67 Upstream 258 291 262 13% 2% 4,74 4,84 4,49 Downstream 129 136 5% -5% 4,0 4,27 123 3,5
Slide 19: EBITDA is on strong recovery track
EBITDA is on strong recovery track Adjusted EBITDA per barrel ($/bbl) Adjusted EBITDA Margin 40 37% 32,2% 35 32,5 37,6 31% 29,0% 27,4% 30 25% 22,9% 25 20 19% 17,9 15 12% 5,0 8,3% 10 11,5 6% 5 0 0% 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 • In 2Q09 Gazprom Neft’s adjusted EBITDA reduced by 5
Slide 20: Consistent Cash Performance
Consistent Cash Performance Cash Sources and Uses (US$MM), 6m 2009 Available Net Cash Flow (US$MM) $219 $1 665 -$1 197 $577 $2 000 $2 075 -$2 219 $2 564 $1 676 $1 498 -$502 $888 $502 $1 717 $1 197 31.12.2008 Operating Capital Other Debt Net Dividends 30.06.2009 Cash Flow Expenditures (Investing Chan
Slide 21: Organic Capex Breakdown
Organic Capex Breakdown Capex Dynamics, $ mln $806 • 2Q09 CAPEX is 11% below that in $717 -11% 42 2Q08 due to Ruble devaluation 42 effect and CAPEX efficiency 114 increase. +49% 323 $480 204 • In 2Q09 upstream CAPEX grew only 43 modestly by 9% q-o-q to $399 mln 72 • In 2Q09 refining CAPEX almost 181
Slide 22: Debt Profile
Debt Profile Net Debt/EBITDA, Gearing (%) Maturity Profile (US$MM) 0,90 30% 1 278 1 256 0,60 20% 0,30 10% 581 219 0,00 0% 119 2006 2007 2008 2Q09 2010 2011 2012 2013 2014 Net Debt/EBITDA (lhs) Gearing (rhs) Debt Structure as of March 2009, % Credit Ratings BBB/Baa2 Investment Grade 9% BBB-/Baa3 BB+/
Slide 23: Recent transactions
6 GAZPROM NE F T Recent transactions
Slide 24: Sibir Energy: Overview
Sibir Energy: Overview Gazprom Neft share in Sibir Energy, % (as of) Upstream business 54,71% Reserves 33,72% - 120 MM Tonnes (C1 reserves) 27,54% 16,94% Production - 4.8 MM Tonnes in 2009E 23.04.2009 22.05.2009 17.06.2009 23.06.2009 Downstream business Moscow Refinery Shares acquisition (joint vent
Slide 25: Appendix
6 GAZPROM NE F T Appendix
Slide 26: 2Q 2009: Accounting reclassifications and one-offs
2Q 2009: Accounting reclassifications and one-offs Moscow Refinery Valuation Net Income, USD mln. 1,200 805 470 470 335 +258% 335 730 Carrying Value Fair Value Gain from Sibir 1Q09 2Q09 Energy acquisition As of June 23, Gazprom Neft purchased 55% of Sibir Energy, thus increasing it share in Moscow R