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SA Q4 2010 EARNINGS CALL – PKN Orlen SA

PKN Orlen SA · Feb 10, 2011 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 1
    Record high financial and operating results PKN ORLEN consolidated financial results for 4 quarter 2010 Jacek Krawiec, CEO Sawomir Jdrzejczyk, CFO 10 February 2011 1
  2. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 2
    Agenda Achievements in 2010 Macroeconomic environment Financial and operating results in 4Q 2010 Liquidity Priorities for 2011 Summary 2
  3. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 3
    The best yearly operating profit and net profit since 5 years Record high results: PLN 3,1 bn of operating profit. PLN 2,5 bn of net profit. Marco environment improvement: increase in model refining margin and URAL/Brent…
  4. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 4
    Great achievements as a result of consistent implementation of many actions Crude oil throughput increase to over 28 m tonnes. Utilisation ratio increase in ORLEN Lietuva, Unipetrol and full utilisation in Plocks refinery. Record…
  5. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 5
    Agenda Achievements in 2010 Macroeconomic environment Financial and operating results in 4Q 2010 Liquidity Priorities for 2011 Summary 5
  6. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 6
    Improvement of macroeconomic factors in 4Q 2010 (y/y) Crude oil price increase Refining margin and U/B diff increase Average Brent Crude Oil price, USD/bbl Model refining margin and Ural/Brent differential, USD/bbl + 12 USD/bbl +…
  7. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 7
    Maintained GDP growth in 4Q 2010 and further increase of diesel consumption GDP increase Fuel consumption (diesel, gasoline) Change (%) to respective quarter of last year mt 4Q09 1Q10 2Q10 3Q10 4Q101 4Q09 4Q102 4Q09 4Q102 +2% 2,89…
  8. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 8
    Agenda Achievements in 2010 Macroeconomic environment Financial and operating results in 4Q 2010 Liquidity Priorities for 2011 Summary 8
  9. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 9
    Significant improvement in financial and operating results in 2010 4Q09 3Q10 4Q10 PLN m 12M09 12M10 + 29% +23% PLN 83,5 bn of revenues in 2010 22 106 22 931 83 547 due to record high sales and macro 17 807 67 928 improvement, i.e.…
  10. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 10
    Good results achieved in all segments 4Q09 3Q10 4Q10 change y/y PLN m 12M09 12M10 change y/y 334 789 747 124% EBIT, of which: 1097 3 123 185% 171 736 248 45% EBIT acc. to LIFO -55 1715 - 333 462 610 83% Refining 1124 2 481 121%…
  11. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 11
    The highest in the history total sales volumes, over 34 mt Sales volumes th t 4Q09 3Q10 4Q10 12M09 12M10 Total sales volumes in 4q2010 increased by 5% (y/y) to the level of 8,9 mt as a result of + 8% + 1% economic pick-up and…
  12. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 12
    Increased crude oil throughput up to 7,5 mt in 4Q 2010 Crude oil throughput Utilisation ratio mt % 110 101 101 100 102 +14% 98 100 7,4 7,5 90 100 6,6 6,9 99 6,2 90 83 79 79 80 86 78 69 70 68 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10…
  13. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 13
    Agenda Achievements in 2010 Macroeconomic environment Financial and operating results in 4Q 2010 Liquidity Priorities for 2011 Summary 13
  14. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 14
    Safe level of indebtedness and financial ratios Net debt and financial leverage % Financial Safe financial situation in PLN bn, % gearing Decreasing of indebtedness by PLN 2,5 bn (y/y) and 10,3 10,3 9,8 9,9 financial gearing to…
  15. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 15
    Over PLN 6,1 bn of cash flow from operations in 2010 change change 4Q09 3Q10 4Q10 PLN m 12M09 12M10 y/y y/y Cash flow from operations 401 1 625 1 385 984 3 348 5 231 1 883 before working capital change 2 515 -1 225 1 441 -1 074…
  16. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 16
    Continuation of initiatives decreasing working capital Change in working capital Effect of operations on change of working capital in 4Q10, PLN bn as of 31.12.2010, PLN bn Change in working capital by PLN 2,1 bn in 4Q2010 Additional…
  17. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 17
    Agenda Achievements in 2010 Macroeconomic environment Financial and operating results in 4Q 2010 Liquidity Priorities for 2011 Summary 17
  18. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 18
    Operational priorities PKN ORLEN INVESTMENTS Sales: Petrochemicals: Despite of the growing competition annual term contracts were PX/PTA - technological start up is pending . signed at the level of the previous year. Most modern unit…
  19. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 19
    Actions releasing capital POLKOMTEL Cooperation between all shareholders in the sales process. Sending information memorandum is in progress, gathering initial offers in 1q2010. Finalization of sales process planned in 1H2011.…
  20. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 20
    Building new segments UPSTREAM PROJECTS ENERGY Latvian shelf work out data from exploration gathered so Advanced preparation of investment in Wocawek, final far. decision to make in 3q 2011 The drill is planned at the turn of…
  21. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 21
    Agenda Achievements in 2010 Macroeconomic environment Financial and operating results in 4Q 2010 Liquidity Priorities for 2011 Summary 21
  22. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 22
    Summary of 2010 Very good results PLN 3,1 billion of operating result, improvement of the result by PLN 2 billion (y/y) . PLN 2,5 billion of net profit, improvement of the result by PLN 1,2 billion (y/y). Increase in sales volumes by…
  23. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 23
    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: irorlen.pl www.orlen.pl 23
  24. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 24
    Agenda Supporting slides 24
  25. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 25
    PKN ORLEN Improvement of macroeconomic environment PLN m PLN + 413 m 1.200 417 1.000 -73 800 747 336 -267 600 400 334 200 0 EBIT 4Q09 Inventory valuation Macro Volumes Other EBIT 4Q10 Higher impact of inventory valuation…
  26. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 26
    Refining segment Increase of utilization in all Group refineries PLN m PLN + 277 m 1.000 309 900 800 -101 700 309 610 600 -240 500 400 333 300 200 100 0 EBIT 4Q09 Inventory valuation Macro Volumes Other EBIT 4Q10 Positive…
  27. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 27
    Retail segment Market pressure on fuel margins level PLN m PLN + 17 m 250 18 224 207 15 -6 200 -10 150 100 50 0 EBIT 4Q09 Fuel margins Volumes Non-fuel Other EBIT 4Q10 sales Increase of volume sales by 3% (y/y) achieved…
  28. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 28
    Petrochemical segment Olefins, polyolefins and fertilizers sales growth and stable level of PVC PLN m PLN + 134 m 140 13 120 108 117 -14 100 80 60 40 20 27 0 - 20 -17 EBIT 4Q09 Inventory valuation Macro Volumes Other EBIT 4Q10…
  29. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 29
    Main P&L elements breakdown by key companies in 4Q 2010 Others & ORLEN ORLEN PKN ORLEN 3) ORLEN IFRS, PLN m Unipetrol 3) consolidation Group Group (unconsolidated) Lietuva excludings 4Q10 4Q09 Revenues 17 349 3 551 5 217 -3 186 22…
  30. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 30
    Operating results breakdown by key segments and companies in 4Q 2010 Others & ORLEN ORLEN PKN ORLEN 4) ORLEN IFRS, PLN m Unipetrol 4) consolidation Group Group (unconsolidated) Lietuva excludings 4Q10 4Q09 EBIT 770 32 -88 33 747…
  31. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 31
    ORLEN Lietuva Group. Key elements of the profit and loss account1 change change 4Q09 3Q10 4Q10 IFRS, USD m 12M09 12M10 y/y y/y 1 246 1 542 1 743 40% Revenues 4 333 5 786 34% 8 16 39 388% EBITDA 80 104 30% -11 -7 15 - EBIT 0,5 11…
  32. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 32
    UNIPETROL Group. Key elements of the profit and loss account1 change change 4Q09 3Q10 4Q10 IFRS, CZK m 12M09 12M10 y/y y/y 18 347 22 505 22 014 20% Revenues 67 387 85 967 28% 620 1 170 983 59% EBITDA 2 778 5 174 86% -260 238 122 -…
  33. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 33
    Key production data change change change Key production data 4Q09 3Q10 4Q10 (y/y) (q/q) 12M09 12M10 (y/y) 1 Refinery in Poland Processed crude (tt) 3 498 3 664 3 788 8% 3% 14 526 14 452 -1% Utilisation 98% 100% 100% 2 pp 0 pp 102% 100%…
  34. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 34
    Major planned maintenance shutdowns for 2011 1Q 11 2Q 11 3Q 11 4Q 11 HDS V Hydrogen Unit Hydrocracker H-Oil FCC Refinery Litvinov - refinery Litvinov - petrochemical Kralupy - HDS Paramo Wider range of planned…
  35. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 35
    Macro environment in 2010 vs 2009 12 PKN ORLEN Group model refining margin 2009 av erage 2009 2010 av erage 2010 9 6 3,8 USD/bbl (2010) 3 3,8 USD/bbl (2009) 0 January February March April May June July August September October…
  36. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 36
    Macro environment in 1Q 2011 Crude oil price increase Refining margin decrease, whereas U/B diff increase Average Brent Crude Oil price, USD/bbl Model refining margin and Ural/Brent differential, USD/bbl +10 USD/bbl -0,5 USD/bbl 87…
  37. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 37
    Macro environment forecast for 2011 12 PKN ORLEN Group model refining margin 2010 av erage 2011 2011 av erage 2010 9 6 3.8 USD/bbl 3 1.7 USD/bbl 0 January February March April May June July August September October November…
  38. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 38
    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…
  39. SA Q4 2010 EARNINGS CALL – PKN Orlen SA – slide 39
    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: irorlen.pl www.orlen.pl 40

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