Contents Page Petrom at a glance 4 Business environment 12 Petrom Strategy 2021 16 Business overview 20 Financial performance: Q1/14 results 30 Management agenda 2014 41 Note: All the figures refer to Petrom Group…
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Petrom at a glance 4 Investor presentation
Petrom is an operationally integrated oil & gas player 2013 FIGURES Exploration and Production Refining and Marketing Petrobrazi refinery Romania Oil: Supplies 100% of (4.2 mn t/yr capacity) 4 mn toe/yr crude oil and NGL oil for…
6 ExxonMobil PetroChina BP * Not listed Shell Chevron Petrobras Supermajors Total Statoil ASA ENI Investor presentation ConocoPhillips Majors Novatek Anadarko Occidental Apache Devon Source: Evaluate…
Petrom is the leading industrial company in Romania 2013 FIGURES Largest private employer Main energy supplier 20,000 direct employees and Accounts for 40% of oil, gas more than 60,000 indirect jobs and fuel supply, and up to 10%…
Petrom has transformed from an inefficient state-owned company into a high-performing private company From... To... Impact State company mindset Professional organization Transparency Corporate Bureaucracy Two-tier management system…
Financial performance in 2013 Clean CCS EBIT 2013 vs. 2012 in RON mn Exploration & Production First annual increase in hydrocarbon production in Romania since privatization 6,015 5,855 Continued focus on cost reduction Unfavorable…
Evolution of financial indicators Solid financial basis for growth and sustainable performance Operating cash flows, RON bn ROACE, % 8.0 17.3 19.0 7.2 16.5 6.4 4.6 10.7 2.7 5.2 2009 10 11 12 2013 2009 10 11 12 2013 Capex…
Petrom has recently benefited from an improved capital market environment Free float increased in 2013 OMV*: Austrias largest listed industrial company and integrated international oil and gas company 18.99% Property Fund: listed…
Business environment 12 Investor presentation
Macroeconomic environment Romanias resilient economy continues to recover EU member since January 2007 Romania GDP continues to recover Country ratings: investment GDP growth rate, % Current Account deficit, % of GDP grade Moodys…
Regulatory environment An investment-friendly environment is required to fully unlock growth in the energy sector Progress made Remaining challenges Oil market is fully liberalized Oil Stable and investment-friendly Gas…
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Petrom Strategy 2021 16 Investor presentation
PETROM STRATEGY AS OF 2012 Strategy 2021: Sustainable performance for growth Maximize portfolio value E&P and position for growth We aim to remain the leading Enhance value of equity G&P regional, integrated oil and…
Strong track record of implementing strategic initiatives C Position for long-term growth B Enhance mid-term value A Sustain performance 2012 2014 2016 2021+ Stabilize production through Increase ultimate oil and gas Explore…
Petrom continues investing in profitable upstream assuming an investment-friendly environment and robust market fundamentals Capital investments of EUR 1bn/yr Petrom total assets 2021 funded through operating profits Total tangible and…
Business overview 20 Investor presentation
Health Safety Security and Environment (HSSE) Safer operations E&P LTIR1 Romania Significantly improved in 2013 1.6 Fatality rate in Romania reduced by 80% since 2008 1.11 50% reduction Petrom LTIR substantially improved2 (0.33…
Exploration Exploration and partnerships efforts to rejuvenate production base starting to pay off 3D seismic coverage of 2D and 3D Seismic exploration acreage 73% in 2013 (from 3% in 2005) 3 Near-field and frontier exploration…
Exploration & Production Petrom footprint is concentrated in Romania 2013 FIGURES Exploration and production concessions Key facts Romania Existing blocks/fields: 10 assets with 239 commercial oil and gas fields (45/55% oil/gas mix)…
Exploration & Production First year of increased production in Romania, while containing production costs Kazakhstan Group production, kboe/d Production was stabilized by Romania accelerating workovers and drilling, 4.6 5.7 6.3 9.9…
Mid-term production FRD projects to unlock growth potential FRDs aim at maximizing ultimate recovery 11 FRDs in development phase EOR/ IOR (water, steam, polymer injection) 2P reserves of 100 mn boe Peak production: 17 kboe/d…
Black Sea exploration and production Strong position in Black Sea for future growth Romania Neptun Deep OMV Petrom (50%), ExxonMobil (Operator 50%) Domino discovery in 2012 3D seismic completed (6,000 km2 ); processing seismic…
Black Sea exploration First exploration well in Neptun Deep highly successful Progress 3D seismic survey (6,000 km2 operated by CGG Veritas) completed in Q2/13 Processing of 3D seismic data is ongoing Following seismic data…
Gas & Power Lower contribution due to challenging gas and power markets Other* Gas sales, bcm Total gas consumption in Petrom gas sales 15 13.8 14.2 Romania down by 8% in 2013 13.1 13.6 12.5 Petrom consolidated gas sales 10…
Refining & Marketing Good operational performance with high refinery utilization rate Refining & Marketing positively contributes to Petrom results Strong operating profit despite margin Clean CCS EBIT, RON mn pressure 500 374…
Q1/14 overview Clean CCS EBIT, RON mn -6% Production at 181.8 kboe/d 1,579 RON 1% stronger vs. USD and 1,477 3% weaker vs. EUR Average Urals crude prices of USD 107.42/bbl Gas sales volumes of 13.47 1,417 TWh (1.25 bcm) 1,372…
Economic environment Average Urals price in USD/bbl (left scale) Domestic gas price in Romania (for households) Indicator refining margin (USD/bbl) Average RON/USD (right/scale) Domestic gas price in Romania (for non-households)…
Results in Q1/14 Clean CCS net income attribu- in RON mn Q1/14 Q1/13 table to stockholders (RON mn) EBIT 1,472 1,582 (7)% Financial result (132) 2 n.m. -19% 1,328 Taxes (265) (252) 5% Effective tax rate 20% 16% 24% 1,080 Net…
Cash flow Q1/14 (RON mn) in RON mn Q1/14 Q1/13 Profit before taxation 1,340 1,584 (15)% 42 Depreciation and amortization 812 779 4% 812 (229) Net interest paid (5) (6) (26)% (1,386) Tax on profit paid (229) (232) (1)% 1,340…
CAPEX and EBITD Q1/14 (RON mn) Key investment projects for Q1/14 2,284 E&P: drilling, workover activities & sub-surface operations and surface facilities, field re-development initiatives as well as investments 1,249 1,987…
Special items and CCS effect Q1/14 (RON mn) in RON mn Q1/14 Q1/13 1,477 Clean CCS EBIT 1,477 1,579 1,472 2 (5) (2) 0 CCS gains/ (losses) (5) 44 Clean EBIT 1,472 1,623 Personnel related costs (2) 0 Other impairments 0 (42) Other…
Exploration and Production Clean EBIT Q1/14 vs. Q4/13 (RON mn) Q1/14 vs. Q1/13 (RON mn) 1,417 1,372 1,372 1,274 (63) 146 83 (210) (16) (43) 26 131 Q4/13 Realiza- Volume Explo- Other Q1/14 Q1/13 Realiza- Volume Explo- Other…
Exploration and Production KPIs Hydrocarbon production (kboe/d) OPEX (USD/boe) Oil and NGL Gas 183 184 182 181 182 17.5 17.0 89 88 88 87 87 14.9 14.9 14.4 94 96 94 94 95 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/13 Q2/13 Q3/13…
Gas and Power Clean EBIT Clean EBIT Q1/14 vs. Q1/13 (RON mn) 155 Gas sales volumes down by 18% due to weak demand from the industrial sector, milder (57) winter and reduced withdrawals from storage (60) Power business affected by…
Management agenda 2014 Maintain production stabilization Exploration activity in the Black Sea Finalize Petrobrazi modernization Continue dialogue with authorities on taxation and regulatory frameworks; impact on…
Petroms heritage: 150 years of Romanian oil history 1857 First officially reported oil production in Romania: 275 t 1975 First exploration drilling in the Black Sea 1861 First well manually drilled by means of wooden rods and gimlet…
Romanian oil market overview Supply IMPORTS: various 57% 43% PRODUCTION TRANSPORTATION: Conpet Refineries (combined nameplate capacity 12 mn tpa) 74% 26% Refineries processed crude oil 9.4* mn tpa (of which 5.3 mn t…
Romanian gas market overview Regula- tory Regulatory Body Romanian Energy Regulatory Authority IMPORTS: various 15% 85% PRODUCTION: , Romgaz, Supply STORAGE: TRANSPORTATION: Transgaz Romgaz, Depomures, Amgaz SUPPLY: ,…
Electricity market(s) overview Regulatory Regulatory Body Romanian Energy Regulatory Authority 99% 1% Producers Supply Traders (Imports) Thermal Wind Hydro Nuclear 46% 8% 26% 20% Market(s) Ancillary services &…
Brazi power plant Investment May 2007 decision Investment value EUR 530 mn Construction period 2008 2011 Commercial August 1, 2012 operation start Contractor Consortium GE & Metka Greece Largest State of the High Installed…
Petrobrazi refinery modernization Streamlined refining Yield, in % nameplate capacity to process 4 mn t/yr domestic Middle distillates* Substantial value crude (80 kbbl/d)1 contribution Other** 2010-2014 investments of Maximized…
Petrom Group fuels retail sales (mn l) 163 159 135 136 117 86 2009 10 11 12 2013 2,728 2,581 2,445 2,405 2,405 Republic of Moldova Romania Serbia 2009 10 11 12 2013 153 392 305 263 240 219 195 Bulgaria Black Sea…
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