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Q4 2013 EARNINGS CALL – PKN Orlen SA

PKN Orlen SA · Jan 24, 2014 · 45 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. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 1
    PKN ORLEN consolidated financial results 4Q13 Jacek Krawiec, CEO Sawomir Jdrzejczyk, CFO 24 January 2014 1
  2. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 2
    Agenda Key highlights 2013 Macroeconomic environment Financial and operating results Investments Liquidity and debt Outlook 2014 2
  3. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 3
    Key highlights 2013 Shareholders Value creation Dividend payment: PLN 642 m, i.e. PLN 1,5 per 1 share Acquisition of TriOil (Canadian upstream company) Dividend yield: 3,8% based on average PKN ORLEN share Contracts with Rosneft…
  4. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 4
    Agenda Key highlights 2013 Macroeconomic environment Financial and operating results Investments Liquidity and debt Outlook 2014 4
  5. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 5
    Macro environment in 4Q13 (y/y) Crude oil price decrease Refining margin and B/U differential decrease Average Brent Crude Oil price, USD/bbl Model refining margin and Brent/Ural differential, USD/bbl 140 differential margin - 1 USD/bbl…
  6. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 6
    Sings of fuel consumption increase GDP increase1 Fuel consumption (diesel, gasoline)2 Change (%) to respective quarter of last year mt 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 4Q13 4Q12 4Q13 - 2% - 2% 2,86 2,79 0,8 1,9 1,62,5 0,7 0,5 0,93…
  7. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 7
    Agenda Key highlights 2013 Macroeconomic environment Financial and operating results Investments Liquidity and debt Outlook 2014 7
  8. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 8
    Financial results in 2013 4Q12 3Q13 4Q13 PLN m 12M12 12M13 - 11% - 5% Revenues: decrease by (-) 5% (y/y) due to lower crude 31 245 30 392 120 102 113 853 oil prices by (-) 3% and strengthening of PLN against 27 678 USD by (-) 3%…
  9. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 9
    EBITDA LIFO PLN 0,6 bn in 4Q13 due to strong retail Segments results in 4Q13 Negative impact of: PLN m 420 Record-low refining margins, strengthening of PLN against USD -14 and worsening of petchem products margins (y/y) 605 -176…
  10. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 10
    Refining EBITDA LIFO Worsening of result (y/y) mainly due to record low margins EBITDA LIFO quarterly (without impairments*) PLN m 996 + 1.000 930 Higher sales in Poland (y/y) 843 800 716 Improvement of fuel yields in all refineries…
  11. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 11
    Refining operational data Fuel yields improvement at lower crude throughput in 4Q13 by (-) 5% Sales volumes Utilisation ratio mt % PKN ORLEN Unipetrol ORLEN Lietuva 7 - 4% 100 98 98 97 6,3 6,3 6,2 6,1 6,0 6,1 5,9 5,9 97 92 6 5,7 5,5…
  12. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 12
    Retail EBITDA LIFO Better result (y/y) mainly due to higher fuel margins EBITDA LIFO quarterly (without impairments*) PLN m + 500 450 Higher fuel margins in Polish, Czech and Lithuanian 388 markets offset lower profitability in German…
  13. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 13
    Retail operational data Comparable sales (y/y). Increase of Stop Cafe and Bistro Cafe by 234 (y/y) Sales volumes Number of petrol stations and market shares (by volume) mt , % 3 0% 2,0 1,9 2,0 2,1 1,9 1,9 1,9 1,9 1,9 2 1,8 1,8 1,8…
  14. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 14
    Petrochemicals EBITDA LIFO Lower result (y/y) due to worsening margins on petrochemical products EBITDA LIFO quarterly (without impairments*) PLN m 694 + 700 667 678 Weakening of average PLN against EUR by 8gr to 580 4,19 EUR/PLN…
  15. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 15
    Petrochemicals operational data Comparable sales (y/y) despite unplanned polyethylene unit shutdown Sales volumes PTA sales volumes mt kt 1,5 0% 1,4 1,4 1,3 1,3 1,3 1,3 1,3 1,2 1,2 1,2 1,2 1,2 1,2 1,2 1,2 137 134 146 139 109 157…
  16. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 16
    Agenda Key highlights 2013 Macroeconomic environment Financial and operating results Investments Liquidity and debt Outlook 2014 16
  17. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 17
    CAPEX PLN 3 bn in 2013 CAPEX 12M13 split by segment CAPEX 12M13 split by growth and maintenance/regulatory PLN m mln PLN 839 138 3044 3044 Upstream 304 526 130 Growth 1580 Upstream 467 Downstream 535 (TriOil) 944 603 Maintenance/…
  18. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 18
    Upstream Organic projects in Poland 1 Unconventional projects (shale gas and closed gas) PROJECT KAMBR 10 exploration concessions / 9 th km2 9 wells finished, including: 7 vertical and 2 horizontal as well as 2 fracking Lublin…
  19. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 19
    Upstream M&A acquisition of TriOil in Canada Transaction Assets On 12 November 2013 shareholders on TriOil Meeting accepted by a Assets portfolio concentrated in the Canadian province of Alberta covering majority of votes the shares…
  20. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 20
    Energy Projects realization Strategic assumptions Building a CCGT plant in Wloclawek (463 MWe) Concentration on industrial cogeneration projects with the highest In 4Q13 continuation of ground and foundation works on site i.e. boiler…
  21. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 21
    Agenda Key highlights 2013 Macroeconomic environment Financial and operating results Investments Liquidity and debt Outlook 2014 21
  22. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 22
    Cash flow PLN 5,7 bn of inflows from operations in 2013 Cash flow from operations Cash flow from investments PLN bn PLN bn Working capital decrease by PLN 1,3 bn 1,2 1,3 1,5 0,2 -1,2 -1,3 Net inflow Decrease of Decrease of Decrease…
  23. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 23
    Debt Safe financial conditions Net debt and gearing Covenant net debt/EBITDA below 3,5 PLN bn, % Financial gearing, % Net debt/EBITDA LIFO Net debt/EBITDA 2,4 2,35 26,9 24,4 22,1 2,2 2,12 17,8 16,9 2,0 1,86 1,85 1,8 1,65 8,6 1,58…
  24. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 24
    Agenda Key highlights 2013 Macroeconomic environment Financial and operating results Investments Liquidity and debt Outlook 2014 24
  25. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 25
    Outlook 2014 external environment Macro - assumptions GDP growth Brent crude oil price comparable average level to 2013 GDP - in 2013 Polish economy is estimated to increase by 1.3 percent, in 2014 will speed up to 2,9 percent and in…
  26. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 26
    Outlook 2014 PLN 3,8 bn CAPEX CAPEX split by growth and maintenance/regulatory Main projects in 2014 % Refining Continuation of building Flue Gas Desulphurization and Installation of Catalytic Denitrification (maintenance/regulatory)…
  27. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 27
    Outlook 2014 summary We expect moderate GDP and consumption growth We are prepared for the next challenging year in refining We will further strengthen our focus on: operational excellence cash generation strategic…
  28. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 28
    Thank You for Your attention www.orlen.pl 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: irorlen.pl 28
  29. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 29
    Agenda Supporting slides 29
  30. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 30
    Results split by quarters (PLN, m) 4Q13 3Q13 4Q12 y/y 12M13 12M12 Revenues 27 678 30 392 31 245 -11% 113 853 120 102 -5% EBITDA LIFO 605 796 352 72% 3 171 4 459 -29% Effect LIFO -538 362 -513 -5% -668 -175 -282% EBITDA 67 1 158 -161 - 2…
  31. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 31
    Results split by segments 4Q13 (PLN, m) Refining Retail Petrochemicals Upstream Corporate functions Total EBITDA LIFO 51 324 420 -14 -176 605 Effect LIFO -535 0 -3 0 0 -538 EBITDA -484 324 417 -14 -176 67 Depreciation -243 -89 -188 -4…
  32. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 32
    EBITDA LIFO - split by segments (PLN, m) 4Q13 3Q13 4Q12 y/y 12M13 12M12 Refining 51 52 -113 - 466 2 121 -78% Refining - LIFO effect -535 328 -487 -10% -688 -154 -347% Retail 324 450 190 71% 1 268 1 006 26% Petrochemicals 420 399 470…
  33. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 33
    Results 4Q13 - split by companies Others and IFRS ORLEN consolidation PLN, m PKN ORLEN S.A. Unipetrol 2) Lietuva 2) corrections Total Revenues 20 141 3 934 5 937 -2 334 27 678 EBITDA LIFO 629 38 -140 78 605 Effect LIFO 1) -507 -3 -29 1…
  34. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 34
    EBITDA LIFO in 4Q13 split by segments and companies Others and IFRS consolidation PLN, m PKN ORLEN S.A. Unipetrol 4) ORLEN Lietuva 4) corrections Total Refining 1) 250 -64 -96 -39 51 Retail 266 28 1 29 324 Petrochemicals 2) 242 81 0 97…
  35. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 35
    ORLEN Lietuva Group Key elements of the profit and loss account 1 IFRS, USD m 4Q13 3Q13 4Q12 y/y 12M13 12M12 Revenues 1 932 2 142 2 360 -18% 8 054 8 051 0% EBITDA LIFO -48 -4 39 - -9 177 - EBITDA -57 13 21 - -23 114 - EBIT -75 -6 34 -…
  36. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 36
    UNIPETROL Group Key elements of the profit and loss account 1 IFRS, CZK m 4Q13 3Q13 4Q12 y/y 12M13 12M12 Revenues 25,070 24,859 26,260 -5% 99,415 107,160 -7% EBITDA LIFO 252 235 -3,170 - 1,589 -599 - EBITDA 246 737 -3,500 - 1,522 -1,012…
  37. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 37
    Macro environment in 2013 14 2012 average 2013 2013 average 2012 12 ORLEN Group model refining margin 10 8 5,7 USD/bbl 6 4 3,4 USD/bbl 2 0 -2 January February March April May June July August September October November…
  38. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 38
    Macro environment in 1Q14 (q/q) Crude oil price decrease Refining margin and B/U differential increase Average Brent Crude Oil price, USD/bbl Model refining margin and Brent/Ural differential, USD/bbl - 1 USD/bbl differential margin…
  39. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 39
    Macro environment in 2014 10 2013 average 2014 2014 average 2013 ORLEN Group model refining margin 8 6 4 3,4 USD/bbl 2 0,5 USD/bbl 0 -2 January February March April May June July August September October November December 4…
  40. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 40
    Model refining margin + B/U diff historical data Model refining margin + B/U diff - quarterly USD/bbl 11,4 9,7 9,5 8,9 9,1 6,5 6,5 6,5 6,0 5,5 5,5 5,8 5,4 4,8 4,4 4,6 4,0 4,3 3,6 3,4 3,1 3,5 2,9 2,1 1q08 2q08 3q08 4q08…
  41. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 41
    Model refining margin and B/U diff historical data Model refining margin - quarterly B/U diff - quarterly USD/bbl USD/bbl 8,4 7,7 7,0 7,1 6,8 5,3 5,3 4,6 4,7 4,4 4,4 4,0 4,1 3,6 3,3 3,1 3,1 3,3 3,3 2,9 2,9 2,9 2,7 2,8 2,6 2,2…
  42. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 42
    Maintenance shutdowns of key installations in 2013 Q113 Q213 Q313 Q413 CDU III FCC Hydrocracker H-Oil HDS VI / HDS VII HON VI Hydrogen / Recovery Unit Olefin Unit (S.C.) PX/PTA BOP - PE Anwil Agro Reforming HDS VBU…
  43. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 43
    Production data 4Q13 3Q13 4Q12 (y/y) (q/q) 12M13 12M12 Total crude oil throughput in PKN ORLEN 7 088 7 461 7 491 -5% -5% 28 215 27 939 1% Utilization in PKN ORLEN 91% 96% 97% -6 pp -5 pp 91% 90% 1 pp Refinery in Poland 1 Processed crude…
  44. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 44
    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…
  45. Q4 2013 EARNINGS CALL – PKN Orlen SA – slide 45
    www.orlen.pl 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: irorlen.pl 46

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