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Q2 2011 EARNINGS CALL – PKN Orlen SA

PKN Orlen SA · Aug 5, 2011 · 36 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. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 1
    Good results achieved in difficult macro environment PKN ORLEN consolidated financial results for 2 quarter 2011 Jacek Krawiec, CEO Sawomir Jdrzejczyk, CFO 5 August 2011 1
  2. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 2
    Agenda Achievements in 2Q 2011 Macroeconomic environment Financial and operating results in 2Q 2011 Liquidity Realization of priorities Summary 2
  3. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 3
    PKN ORLEN achievements in 2Q 2011 FINANCIAL PARAMETERS PLN 1,0 bn of operating profit and PLN 0,9 bn of net profit. Unstable macro environment: increase in crude oil price by 50% (y/y). decrease in model refining margin and…
  4. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 4
    Agenda Achievements in 2Q 2011 Macroeconomic environment Financial and operating results in 2Q 2011 Liquidity Realization of priorities Summary 4
  5. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 5
    Unstable macro environment in 2Q 2011 (y/y) Crude oil price increase by 50% Decrease in total of refining margin and U/B diff by 30% Average Brent Crude Oil price, USD/bbl Model refining margin and Ural/Brent differential, USD/bbl + 39…
  6. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 6
    GDP growth slowdown and high prices limit fuel consumption GDP increase Fuel consumption (diesel, gasoline) Change (%) to respective quarter of last year mt 2Q10 3Q10 4Q10 1Q11 2Q111 2Q10 2Q112 2Q10 2Q112 + 5% - 2% 4,2 4,5 4,4 3,9 -…
  7. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 7
    Agenda Achievements in 2Q 2011 Macroeconomic environment Financial and operating results in 2Q 2011 Liquidity Realization of priorities Summary 7
  8. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 8
    Revenues in 2Q 2011 amounted to PLN 25 bn 2Q10 1Q11 2Q11 PLN m 6M10 6M11 Increase of revenues by 22% (y/y) + 22% + 25% mainly due to growth of crude oil 25 641 48 315 prices and higher sales volumes. 21 068 22 674 Revenues 38 510…
  9. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 9
    Higher operating profit according to LIFO due to petrochemical segment 2Q10 1Q11 2Q11 change y/y PLN m 6M10 6M11 change y/y 1123 1339 1 009 -10% EBIT, of which: 1587 2 348 48% 682 450 770 13% EBIT acc. to LIFO 731 1220 67% 983…
  10. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 10
    Sales volumes growth in petrochemicals and retail 2Q10 1Q11 2Q11 kt 6M10 6M11 Total sales volumes in 2Q 2011 + 1% + 4% increased by 1% (y/y) to 8,6 mt due to 8 545 8 070 8 597 16 061 16 667 good conditions in petrochemicals. Sales…
  11. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 11
    Negative impact of shutdowns Crude oil throughput Utilisation ratio mt % 100 100 97 - 2% 93 100 97 90 7,4 7,5 90 93 87 87 6,9 6,8 89 6,4 85 85 85 80 83 69 70 2Q10 3Q10 4Q10 1Q11 2Q11 2Q10 3Q10 4Q10 1Q11 2Q11 Fuel yield…
  12. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 12
    Agenda Achievements in 2Q 2011 Macroeconomic environment Financial and operating results in 2Q 2011 Liquidity Realization of priorities Summary 12
  13. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 13
    Financing secured for the next 5 years Safe financial situation Net debt and financial gearing % Financial in PLN bn, % gearing Decrease of indebtedness to PLN 7,9 bn due to consistently -1,9 bn realized activities. 9,8 9,9…
  14. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 14
    Over PLN 1,0 bn of cash flow from operations change change 2Q10 1Q11 2Q11 PLN m 6M10 6M11 y/y y/y Cash flow from operations 1 194 1 928 1 589 395 2 220 3 518 1 298 before working capital change 1 274 -1 970 -582 -1 856 Working…
  15. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 15
    Continuation of initiatives decreasing working capital Change in working capital Effect of operations on change of working capital in 2Q2011, PLN bn as of 30.06.2011, PLN bn Change in working capital by PLN 0,5 bn in 2Q2011 Additional…
  16. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 16
    Agenda Achievements in 2Q 2011 Macroeconomic environment Financial and operating results in 2Q 2011 Liquidity Realization of priorities Summary 16
  17. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 17
    Actions releasing capital sale of Polkomtel POLKOMTEL Preliminary agreement signed in June for the sale of 100% shares to Spartan Capital Holdings Sp. z o.o., including the entire 24,39% shareholding owned by PKN ORLEN. The…
  18. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 18
    Operating efficiency start-up of PTA production PKN ORLEN Sales: Increase in petrochemical and retail sales volumes. Maintenance shutdowns: Finishing of planned maintenance shutdowns in 2Q2011: Hydrocracker in Plock and turnaround…
  19. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 19
    Continuing of upstream and energy projects CRUDE OIL SHALE GAS Latvian shelf analysis of newly obtained 3D Lublin region seismic works at shale gas seismic data and choice of wholes locations is concessions are started. in progress.…
  20. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 20
    Agenda Achievements in 2Q 2011 Macroeconomic environment Financial and operating results in 2Q 2011 Liquidity Realization of priorities Summary 20
  21. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 21
    Summary Good results in difficult macro environment PLN 25,6 bn of revenues from sales, increase by o 22% (y/y). PLN 1,0 bn of operating profit and PLN 0,9 bn of net profit. 8,6 m t of sales volumes; increase by 1% (y/y). Stable…
  22. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 22
    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 22
  23. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 23
    Agenda Supporting slides 23
  24. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 24
    PKN ORLEN Sales increase offset by unfavorable refining macro PLN m PLN -114 m 1.200 1.123 220 1.009 1.000 -202 216 800 600 -348 400 200 0 EBIT 2q2010 Inventories Macro Volumes Others EBIT 2q2011 valuation Lower positive…
  25. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 25
    Refining segment Negative impact of low refining margins and maintenance shutdowns PLN m PLN - 473 m 983 1.000 900 800 700 -246 600 264 510 500 400 300 200 -456 -35 100 0 Inventories EBIT 2q2010 Macro Volumes Others EBIT…
  26. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 26
    Retail segment Increase of sales volumes limited by lower fuel margins PLN m PLN -24 m 24 250 20 216 200 192 -10 -58 150 100 50 0 EBIT 2q2010 Fuel margins Volumes Non-fuel Others EBIT 2q2011 sales Increase of retail sales…
  27. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 27
    Petrochemical segment Improvement of petrochemical margins and sales volumes increase PLN m 600 PLN + 399 m 231 16 521 500 400 300 108 200 44 122 100 0 EBIT 2q2010 Inventories Macro Volumes Others EBIT 2q2011 valuation…
  28. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 28
    Main P&L elements breakdown by key companies in 2Q 2011 Others & ORLEN ORLEN PKN ORLEN 3) ORLEN IFRS, PLN m Unipetrol 3) consolidation Group Group Change (unconsolidated) Lietuva excludings 2Q11 2Q10 Revenues 18 973 4 225 5 764 -3…
  29. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 29
    Operating results breakdown by key segments and companies in 2Q 2011 Others & ORLEN ORLEN PKN ORLEN 4) ORLEN IFRS, PLN m Unipetrol 4) consolidation Group Group Change (unconsolidated) Lietuva excludings 2Q11 2Q10 EBIT 711 30 4 264…
  30. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 30
    ORLEN Lietuva Group Key elements of the profit and loss account 1 change change 2Q10 1Q11 2Q11 IFRS, USD m 6M10 6M11 y/y y/y 1 429 1 754 2 102 47% Revenues 2 501 3 856 54% 41 73 36 -12% EBITDA 49 109 122% 18 53 16 -11% EBIT 4 69…
  31. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 31
    UNIPETROL Group Key elements of the profit and loss account1 change change 2Q10 1Q11 2Q11 IFRS, CZK m 6M10 6M11 y/y y/y 23 409 23 088 25 950 11% Revenues 41 448 49 038 18% 1 669 1 379 1 012 -39% EBITDA 3 021 2 390 -21% 802 571 224…
  32. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 32
    Key production data change change change Key production data 2Q10 1Q11 2Q11 (y/y) (q/q) 6M10 6M11 (y/y) 1 Refinery in Poland Processed crude (tt) 3 506 3 301 3 480 -1% 5% 7 001 6 781 -3% Utilisation 93% 87% 85% -8 pp -2 pp 93% 86% -7…
  33. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 33
    Macro environment in 3Q 2011 Stable crude oil price Decrease 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 0 USD/bbl - 0,6 USD/bbl 117 117…
  34. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 34
    Macro environment 8 PKN ORLEN Group model refining margin 2010 av erage 2011 2011 av erage 2010 6 4 3.8 USD/bbl 2 1.6 USD/bbl 0 -2 January February March April May June July August September October November December 5…
  35. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 35
    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…
  36. Q2 2011 EARNINGS CALL – PKN Orlen SA – slide 36
    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 37

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