OMV investor presentation November 2013 OMV Aktiengesellschaft
OMV an integrated, international oil and gas company Figures from 2012 Exploration and Production Worldwide activities, core countries: Romania and Austria Approx. 80% of production in EU and OECD countries Production: 303 kboe/d…
Key strategic targets until 2016 Grow upstream Grow production to 400 kboe/d Exploration and appraisal expenditures flat at EUR 700 mn p.a. (2011 and 2012 60% success rate) 80% of Group CAPEX to E&P Reserve Replacement Rate 100% 1…
Exploration and Production Proved Production 2012 Reserves 1 Region mn boe kboe/d mn boe Core Countries 76.3 208 855 Black Sea and Caspian 4.7 13 25 North Sea 2.6 7 59 North Africa 14.9 41 110 Middle East 5.5 15 31 New Zealand…
Gas and Power Strategy Integrated gas Figures from 2012 Build up Sales business in CEE, gas position SEE and Turkey Equity gas supply: 5.1 bcm Gas Logistics business: Maintain position Transport capacity sold: 103.2 bcm…
Refining and Marketing Key figures 2012 Refining capacity 22.0 mn t / year Filling stations 4,432 Fuels storage capacity 1 4.5 mn m3 - thereof seaside 1.4 mn m3 Refined product sales 30.0 mn t Marketing sales 21.5 mn t 1…
Financial performance in 9m/13 Clean CCS EBIT in EUR mn Exploration and Production 2,451 (14)% Production decrease to 291 kboe/d (9m/12: 304) 2,203 and Brent price down to USD 108.5/bbl (9m/12: 112.2) Gas and Power 2,127 1,829…
EUR 1.9 bn free cash flow generated in 9m/13: Solid financial basis for growth 9m/13, in EUR bn 4.6 Group CAPEX 9m/13: EUR 1.9 bn thereof NWC Debt 78% in E&P 1.1 reduction 2.0 EUR 1.1 bn net working capital reduction Cash…
Key financial indicators Gearing ratio in % 28 26 15 15 12 Key financial principles Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Long-term gearing ratio target of 30% Payout ratio and DPS 1.10 1.20 Maintain a strong investment grade rating…
Mid-term guidance Production Group CAPEX kboe/d Group investment program over the next three years will be funded by 400 EUR 3.9 bn operating cash flow and planned 320-340 divestments Dividend to increase in line with net income…
Mid-term production guidance Production kboe/d 400 Production grows to 400 kboe/d in 2016 320-340 Organic portfolio (as of Sept. 2011) will deliver 350 kboe/d in 2016 Romania and Austria production kept flat at 200-210 kboe/d out…
Strategy Profitable Growth: Shifting the portfolio to E&P Asset base, in % Growing upstream E&P 35 55-60 G&P 12 Integrated gas 10-20 R&M 53 25-30 OMV OMV target Restructured portfolio 2010 portfolio 2021 oil downstream…
Profitable Growth: Main targets Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 Production growth until 2016 1: 2% p.a. organic, up to 4% incl. acquisitions 100% reserve replacement rate 2 by 2016 (incl.…
Strategy delivery 2014 Stabilized production in Romania and Austria (200-210 kboe/d) Raise performance Improved competitiveness of gas marketing business short-term R&M divestments (up to EUR 1 bn) Performance improvement program…
energize OMV 2% points ROACE increase in 2014 on track Status as of June 30, 2013 ROACE impact Date of Progress since status June 2013 finalization program start Stabilize production in Austria and 2014 Romania Accelerate…
Expected ROACE impact in 2014 Status as of June 30, 2013 Impact of energize OMV on ROACE in 2014 (in % points) Achievements: Commingling successes growing: 1,500 boe/d achieved by 6m/13 (600 boe/d in 2012) 2014 Debottlenecking…
Upstream Key Achievements Status as of June 30, 2013 Stabilize production in Romania Accelerate production growth in Ongoing development and and Austria Tunisia and Pakistan operational excellence in rest of world Facilities…
Downstream Key Achievements Status as of June 30, 2013 Reduce working capital Optimize marketing Improve refining Sale of Austrian national Operational excellence filling Yield improvement stock holding business stations EUR 45…
Romania: Gas price liberalization roadmap Planned gas price liberalization steps 1, 2 Main provisions in EUR/MWh 30 60% tax on net 3 additional 27 27 revenues resulting from 25 domestic gas price liberalization 20 Measure…
This page is left blank intentionally.
Exploration and Production OMV a top 30 international oil & gas company Entitlement production, 2011, kboe/d OMV E&P at a glance Supermajors 303 kboe/d in 2012 Active in 17 countries (exploration and production) 19,300…
OMV E&P asset base 2.580 2.824 Key figures 2012 Clean EBIT 2.099 2.154 EUR mn 1.517 OMV produced an average of 303 kboe/d and its proven reserves amounted to 1,118 mn boe 2008 2009 2010 2011 2012 After the Arab Spring,…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 25 OMV Group, Investor Presentation
Strategy to grow upstream Exploit Stabilize production in the core (Romania the core Romania Raise performance and Austria) Austria short-term (2014) Drive production performance across the portfolio Grow production by 2% p.a.…
First priority Health, Safety, Security and Environment Lost Time Injury Rate 1 Improvement focus E&P group-wide -35% Visibility and Leadership 1.3 Consequence Management 0.8 Process Safety Contractor Management Incident…
Stabilize production in mature core Reduced rate of decline Highest ultimate oil recovery rates (60%) Production in Romania and Austria, kboe/d CAGR, % per year State-of-the-art oil recovery technologies Production share IOR/EOR 3…
Grow Upstream to 400 kboe/d OMV production Project pipeline doubled kboe/d mn boe Including acquisitions Under appraisal Organic Under development 400 1,080 303 350 500 125 430 430 150 580 280 2 2004 1 2012 2016 2021…
Norway: Significant build up since 2011 Gudrun Development 5 Projects from successful acquisitions (2011-2013) Production kboe/d Gulfaks, Gudrun 1 (producing) Edvard Grieg, Aasta Hansteen (under development) Gudrun Edvard Aasta…
Acquisition of offshore assets in Norway and UK from Statoil Production: Shares of 2 assets in Norway Gullfaks (19%) producing Gudrun (24%) starting production in 2014 Gudrun Development: Increased share in 2 UK assets Gullfaks…
North Sea region: Project pipeline increases up to 410 million boe + exploration Exploration Appraisal Development Execution Production WoS Rosebank, UK Edvard Grieg, NOR Gullfaks, NOR No. of licenses Gudrun Rosebank…
Project pipeline: 1 billion boe New ventures Exploration Appraisal Development Execution Middle East KRI 1 Domino (Black Sea) FRDs (Romania) FRDs (Romania) Africa Black Sea FRDs (AT + RO) FRDs (Austria) FRDs (Austria) Norway Bina…
OMV has strong technological capabilities in mature fields in complex developments World class recovery rates (60%) Fractured basement production in Yemen Combined steam flood/in-situ combustion World record Manaia well (New…
Enabling upstream growth Top leadership in place External hires from top industry players Top internal talents developed and deployed Build strong capabilities for growth Up to 1,300 E&P professional intakes in next 4 years…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 36 OMV Group, Investor Presentation
E&P project update Q3/13 Further strengthened project pipeline to 1bn boe Zidane 500 mn boe under appraisal Rosebank FRDs in Romania filling the funnel Gudrun 580 mn boe under development FRD Tazlau Ph 2 FRD Istria Ph 2 Projects…
Major projects under development New ventures Exploration Appraisal Development Execution Production 2P Peak Project Working Project Country Type Operated start reserves production investments interest primary year mn boe kboe/d…
Major projects under appraisal New ventures Exploration Appraisal Development Execution Production Cumulative Working Project Country Type Operated start production interest primary year mn boe % Bina Bawi Gas t.b.d. t.b.d. 36.0…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 40 OMV Group, Investor Presentation
Exploration update Q3/13 Seismic: Bulgaria: 7,800 km 3D seismic (60% finished) Wisting Central 2 Bonna Wisting Main Newly secured acreage: Cambo-5 Statoil acquisition exploration opportunities 1 Madagascar country entry Other…
High impact wells 1 in 2013/14 Exploration and Production Exploration Working Well Country Basin/Block Type 2 Spud date Operated interest Apollo Atlantis Carnarvon Jupiter Palmerston-1 AU E H2/14 33% n NO Basin Apollo NO…
OMV operated Wisting oil discovery opens a new play fairway in the Barents Sea Leiv Eiriksson Rig Breakthrough Discovery OMV operated high impact exploration well New play fairway opened within OMV licenses Preliminary…
Exploration Norway, UK and Faroe Islands Norway: Barents Sea Wisting Central (OMV 25%) 60-160 mnbbl oil discovered in the drilling segment 200-500 mnbbl recoverable oil expected in the whole structure Three high impact wells are…
Exploration in the Black Sea Region Neptun Deep (Romania) Ukraine Domino gas discovery 3D seismic campaign completed Russia New drilling campaign anticipated to start around mid-2014: Domino-2 well and additional exploration wells;…
Exploration in Australia and New Zealand Building on Zola gas discovery in Australia Bianchi-1, appraisal of Zola discovery well found 112 m of net gas pay Palmerston-1, significant exploration well (offshore Australia), planned…
Agenda 350 Grow Upstream to 350 kboe/d and beyond Develop asset base and projects Invest in exploration Secure sustainable reserve base 49 OMV Group, Investor Presentation
OMV has a solid proven reserves life Proved Reserves/Production, 2012, years ExxonMobil 16 BG Group 14 BP 14 Total 13 11 Stable Tullow 13 11 11 10 10 10 10 reserve 12 10 Chevron Occidental 12 life Eni 11 Shell 11 Repsol 11…
Improving reserve replacement rate 1P RRR 1 target of 100% in 2016 Early indicator: 2P RRR 1 3 year average 1 year 158% 100% 97% 79% 55% 2008 2012 2016 2008 2012 target 1 Reserve Replacement Rate. 51 OMV Group,…
Strong financial performance Production costs, in USD/boe CAGR 2008-12 OMV Peer median 16 5.0% 14 12 Strong cost management (2.7)% 10 8 2008 09 10 11 2012 NOPAT 1 per barrel, in USD/boe CAGR 2005-12 24 OMV more profitable…
Creating a sustainable, stable profile Share of production, Percent Production Production Maturity Gas/Oil technology Operatorship Country split kboe/d 30 20 20 16 8 2012 303 47 53 70 80 80 76 20 3 15 7 40 32 35 2016 400 50…
This page is left blank intentionally.
Integrated gas: Gas and Power will focus on two main strategic priorities Best monetization of gas portfolio Future growth 1 potential Prepare for additional equity gas from North Sea and Black Sea and identify target markets and…
European gas market environment expected to remain oversupplied EU 27 and Turkey: Contracted gas supply exceeds demand, bcm Forecast 2013 slightly above 2012 H1/13 demand up due to lower than average temperature Gas to power…
Consequences of oversupplied markets EUR/MWh NCG NBP Zeebrugge CEGH Border contract tracker TTF PSV Long-term supply decoupled Hub prices across Europe Summer-winter spreads from oil-indexation converge fall substantially 35 35…
Strong supply position essential in competitive market Equity gas Long-term contracts 1 Renegotiation of long-term gas Focus on equity gas: Significantly supply contracts increase equity gas share bcm Statoil Adjusted terms of…
North Sea: Recent Statoil asset acquisition contributes to OMVs increasing integrated gas position in Europe Build up gas position First significant gas volumes 2013/14 due to recent Statoil asset acquisition Additional volumes…
Gas to Power: Spark spreads affected by weak demand EUR/MWh Turkey: Low spark spreads driven by Short-term outlook expected to remain challenging weak power demand Moderate demand growth 23 18 Substantial capacity additions (4 GW…
1.7 GW gas-fired power plants on stream Status Brazi CCPP (Romania) Commercial operations since August 2012 860 MW net capacity 9% market share at full capacity Equity gas-fired Most modern and flexible power plant in Investment:…
This page is left blank intentionally.
Key priorities for R&M Drive performance with project Raise performance energize OMV short-term (2014) Divestments to generate up to EUR 1 bn Strengthen product yield and Deliver mid-term petrochemical integration growth (2016)…
First priority Health, Safety, Security and Environment Lost Time Injury Rate Integration of Petrom and Petrol Ofisi R&M business segment 1 Significant LTIR reduction reached by transfer of OMV HSSE standards 0.88 Successful…
Strong business integration and further increased asset utilization Own crude oil % of refining capacity Competition 2012 1 12% OMV 2012 18% E&P Refining OMV 2015 25% Refinery utilization rate Retail sales vol. % of refining…
OMV downstream market grows despite European trend EU-28 market 1 OMV market 1, 2 In mn t 2012-21, mn t 615 104 99 554 +5% -10% Turkey Turkey 2012 2021 2012 2021 1Oil market products: LPG, naphtha, gasoline, jet/kero,…
OMV focuses on high value products with growing demand Product Yield 2012 Products Market growth 1 2012-21 OMV Avg. EU-28 Naphtha as feedstock for Naphtha +19% 18% 9% petrochemical products Market growth 2 2012-21 Jet +20% 6% =…
Modernization of upstream integrated refinery Petrobrazi leads to significant yield improvements 2010 2011 2012 2013 2014 2015 Concept, Execution phase Crude distillation Coker upgrade & Vacuum gasoil First full year of…
Divestments of up to EUR 1 bn on track June Sale of lubricants business November Sale of share in K-PET February Sale of Marketing Business Croatia 2011 2012 2013 2014 Sale of 45% stake in Bayernoil Capital Markets…
Retail focus of OMV is on operational excellence Efficient sites in core markets Retail way forward 2012, throughput per station in mn liters Brand portfolio designed to maximize value 6 of different customer groups OMV 5 4 Country…
OMVs refining availability is industry leading Operational Availability Fuels 1 (%) Success factors 102 102 Planning and execution of turn- 100 100 OMV arounds, shutdowns and other technical projects 98 98 96 96 Quality of…
OMV optimizes petrochemical value by growing butadiene production OMV petrochemical capacity kt p.a. 2,150 OMVs integration in ethylene and 2,050 propylene leverages naphtha value Sustained margin potential for 350 butadiene…
Borealis contributes strongly to R&M results Borouge 1 as capacity driver of Borealis, Solid contribution to OMVs bottom line adding 4.4 mn t per year until 2014 from Borealis (OMV share 36%) kt p.a. EUR mn 2,400 4,400 1,000 186…
Q3/13 Highlights Clean CCS EBIT in EUR mn Significant asset acquisition from Statoil closed end of October 786 Average Brent oil price at USD 110/bbl 619 Production at 275 kboe/d 617 Lower sales volumes mainly in Libya and UK…
Results in Q3/13 Clean CCS net income attributable in EUR mn Q3/13 Q3/12 to stockholders in EUR mn 1 EBIT 576 779 (26)% Financial result (66) (106) (38)% Taxes (134) (272) (50)% 317 Effective tax rate 26% 40% (35)% Net income 375…
Special items and CCS effect Q3/13 in EUR mn Q3/13 Q3/12 in EUR mn Clean CCS EBIT 619 786 619 53 (6) (95) 576 CCS gains/(losses) 53 30 (0) 4 Clean EBIT 673 817 Personnel related costs (6) (2) Unscheduled depreciation (95) (15)…
Cash flow 9m/13 in EUR mn 9m/13 9m/12 in EUR mn Net income 1,669 1,387 20% Depreciation and amortization 1,518 1,549 (2)% 1,073 Other (571) (288) 98% (571) (1,943) Sources of funds 2,616 2,648 (1)% 1,518 802 (625) Change in net…
CAPEX and EBITD 9m/13 Key investments in Q3/13 in EUR mn 3,947 Petrom drilling, workovers and field redevelopments Field developments in Norway (Aasta Hansteen and Edvard Grieg) 2,683 Field redevelopments in Austria 1,949…
Exploration and Production Clean EBIT in EUR mn Q3/13 vs. Q2/13 Q3/13 vs. Q3/12 617 49 597 76 (74) 578 578 19 (40) (1) (187) 100 Q2/13 Realization Volume Exploration Other Q3/13 Q3/12 Realization Volume Exploration Other…
Exploration and Production Key Performance Indicators Hydrocarbon production (1,000 boe/d) Q3/13 vs. Q2/13 309 301 302 297 275 Production down by 7% 168 159 163 159 142 Security problems and strikes in Libya and Yemen Maintenance…
Exploration and Production Petrom group Hydrocarbon production (1,000 boe/d) Q3/13 vs. Q2/13 182 183 183 184 182 Clean EBIT of EUR 348 mn up by 17%, mainly due to 88 88 89 88 88 higher oil and gas prices higher oil sales 94 95 94…
Gas and Power Clean EBIT in EUR mn Q3/13 vs. Q3/12 (4) 7 (3) (10) (15) (4) Q3/12 Supply, Gas logistics Power Other Q3/13 marketing and trading Negative gas margin and gas sales volumes decrease Weaker result…
Gas and Power Key Performance Indicators Gas sales volumes in TWh Q3/13 vs. Q3/12 136 129 Total gas sales volumes down by 100 86 14% driven by reduced trading 85 activities Petrom gas sales volumes increased by 22% Q3/12…
Refining and Marketing Key Performance Indicators Refining utilization rate in % Q3/13 vs. Q3/12 97 94 93 95 92 94 90 87 86 76 Overall refining utilization rate remained high Marketing sales volumes decreased slightly Q3/12…
Outlook 2013 Market environment Brent price: Above USD 100/bbl on average European gas market: Hub prices increasingly determine market prices Refining margins: Lower levels than in 2012 Business outlook CAPEX: Around EUR 2.8 bn…
Resourcefulness is OMVs way of achieving profitable growth in a sustainable and responsible way H2 Mobility Water Management 2nd Generation Biofuels Carbon Management Revamp of Waste Water Treatment Plant, Refinery…
SRI ratings and indices OMV cooperates with leading Extra-financial rating agencies to be transparent towards the capital market. In 2012, oekom research evaluated the social and environmental performance of 26 major oil and gas…
Overview debt structure and credit lines 1,000 Money market borrowings As of September 30, 2013: 900 Bilateral, syndicated, other loans Debt EUR 4,676 mn 800 Eurobonds Cash EUR 2,844 mn German Loan Notes Net debt EUR 1,832 mn…
Loading...
