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2Q and 1H 2017 Results – LUKOIL

LUKOIL · Aug 30, 2017 · 38 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. 2Q and 1H 2017 Results – LUKOIL – slide 1
    Always moving forward 2Q and 1H 2017 IFRS Financial Results August 30, 2017
  2. 2Q and 1H 2017 Results – LUKOIL – slide 2
    Macroeconomic and tax environment Upstream Oil price, exchange rate and net price Price and exchange rate /bbl KRUB/bbl . ./. ./. 6 2q17 1q17 % 1H17 1H16 % 80 5 49.6 53.7 (7.5) Brent, /bbl 51.7 39.8 29.9 60 4 48.4 51.9 (6.8)…
  3. 2Q and 1H 2017 Results – LUKOIL – slide 3
    Macroeconomic and tax environment Downstream Gross benchmark refining margin in Russia, /bbl 2q17 1q17 % 1H17 1H16 % 10 Oil products, KRUB/t 9.0 9.7 (6.8) Fuel oil 9.4 5.7 64.9 8 31.9 31.5 1.3 Diesel fuel 31.7 28.0 13.0 6 37.1…
  4. 2Q and 1H 2017 Results – LUKOIL – slide 4
    Key events Upstream Launched main production facilities at Gissar, Uzbekistan Progressed on schedule with the construction of facilities second-stage development at the Caspian Sea fields: Finalized installation of ice-resistant…
  5. 2Q and 1H 2017 Results – LUKOIL – slide 5
    Key Operational Indicators 2q17 1q17 % 1H17 1H16 % 2,222 2,213 0.4 th. boe per day 2,217 2,185 1.5 Hydrocarbon production (ex. West Qurna-2) 202 199 1.5 mln boe 401 398 0.9 161 161 0.0 of which crude oil and NGL mln bbl 322 326 (1.0)…
  6. 2Q and 1H 2017 Results – LUKOIL – slide 6
    Key Financial Indicators 2q17 1q17 % RUB bln 1H17 1H16 % 1,359 1,432 (5.1) Revenue 2,791 2,517 10.9 179 208 (13.8) EBITDA 387 382 1.3 114 128 (11.1) Exploration and production segment 241 268 (9.9) 96 112 (14.6) in Russia 208 223…
  7. 2Q and 1H 2017 Results – LUKOIL – slide 7
    Dividend Policy Execution Dividend yield (2016) Majors LUKOIL Russia peers 6.9% In June 2017, AGM approved total dividend for 2016 in the amount of 195 rubles per share (+10% y-o-y in rubles, +22% y-o-y in ) Scrip / FCF…
  8. 2Q and 1H 2017 Results – LUKOIL – slide 8
    Upstream 8
  9. 2Q and 1H 2017 Results – LUKOIL – slide 9
    Production Hydrocarbon production, mln boe Growth factors Launch of Filanovsky and Pyakyakhinskoye fields Development of gas projects in Uzbekistan 24 6 West Qurna-2 398 401 Decline factors 25 26 Gas abroad External limitations…
  10. 2Q and 1H 2017 Results – LUKOIL – slide 10
    North Caspian Filanovsky Field Fields 2nd stage Key advantages High-margin barrels Production growth potential Short transportation leg, low lifting costs, high oil quality 1H 2017 results Launched 2 high flow rate bilateral…
  11. 2Q and 1H 2017 Results – LUKOIL – slide 11
    Timan-Pechora Yaregskoye field Key advantages High-margin barrels Substantial production growth potential 1H 2017 results Performed pre-commissioning works at Yarega power plant (75 MW) Launched the Phase 3 Lyayel steam generation…
  12. 2Q and 1H 2017 Results – LUKOIL – slide 12
    West Siberia Pyakyakhinskoye field Key advantages High-margin barrels Substantial production growth potential High well flow rates 1H 2017 results Launched gas production Put into production 21 gas wells Put into production 14…
  13. 2Q and 1H 2017 Results – LUKOIL – slide 13
    West Siberia Key advantages Stable region for reinvestment Lowest cost per meter drilled among the Group companies Proven track record Drilling volumes growth potential supported by vast reserve base 1H 2017 results Increased…
  14. 2Q and 1H 2017 Results – LUKOIL – slide 14
    Uzbekistan Growth of Gas Production Kandym Key advantages Proven track record in the region Substantial production growth potential International prices (export to China) 1H17 results Increased daily production by 8% y-o-y…
  15. 2Q and 1H 2017 Results – LUKOIL – slide 15
    Downstream 15
  16. 2Q and 1H 2017 Results – LUKOIL – slide 16
    Downstream Efficient Oil Allocation Oil allocation price in Russia, /bbl Oil allocation volumes in Russia, mln t 60 54 20.5 20.5 20.3 50 0.6 0.6 Sales in Russia 50 1.6 46 41 40 38 34 10.5 10.4 33 9.9 32 29 30 28…
  17. 2Q and 1H 2017 Results – LUKOIL – slide 17
    Downstream Russian Refineries Refinery throughput, Refining Light products mln t depth yield Refinery throughput Total* 9.9 10.5 10.4 88% 85% 88% 63% 65% 71% Higher throughput at Nizhny Novgorod and Volgograd refineries 70% 72%…
  18. 2Q and 1H 2017 Results – LUKOIL – slide 18
    Downstream European Refineries Refinery throughput, Refining Light products mln t depth yield Total 6.5 5.7 5.9 85% 86% 84% 72% 75% 76% 99% 99% 99% Refinery throughput (+4% q-o-q) 82% 78% 80% Ploieti 0.7 0.4 0.6 Reaching…
  19. 2Q and 1H 2017 Results – LUKOIL – slide 19
    Downstream High-Priority Channels (1H17 vs. 1H16) Filling stations Jet Motor fuels sales volumes growth +6% Into-plane jet fuel sales volumes growth EKTO fuels sales volumes - Russia +19% - Abroad +9% +7% into-plane sales volumes…
  20. 2Q and 1H 2017 Results – LUKOIL – slide 20
    Financial Results 20
  21. 2Q and 1H 2017 Results – LUKOIL – slide 21
    Revenue RUB bln 6 1,432 1 25 (1) (2) (10) (37) 1,359 (48) (7) Revenue Oil Oil Oil products Oil products Other Revenue 1q17 (Russia) (International) (Russia) (International) 2q17 Volume factor Price and…
  22. 2Q and 1H 2017 Results – LUKOIL – slide 22
    EBITDA RUB bln 18 (26) 208 (16) 2 (6) 0 179 EBITDA in outside Russia in outside Russia Corporate Elimination EBITDA 1q17 Russia Russia and 2q17 other Exploration and production Refining, marketing and…
  23. 2Q and 1H 2017 Results – LUKOIL – slide 23
    Operating Expenses RUB bln 113.7 110.6 107.5 14.5 Other 12.0 14.1 3.3 2.9 8.6 3.0 Petrochemical 10.8 8.9 Power generation and distribution 10.9 10.8 12.6 Crude oil transportation to refineries 22.8 21.0 20.0 Refining at the…
  24. 2Q and 1H 2017 Results – LUKOIL – slide 24
    SG&A and Transportation Expenses SG&A Transportation expenses RUB bln 45 78 4 (3) 39 36 2 (0) (3) 74 (2) (1) 68 2q16 1q17 Labor Other Share - Provision 2q17 2q16 1q17 Oil Refined Other 2q17 costs SG&A based for…
  25. 2Q and 1H 2017 Results – LUKOIL – slide 25
    Profit RUB bln 53 (29) (16) 48 (3) 10 139 71 Effect of sale of diamonds business 62 1q17 FX Finance income / EBITDA Income tax DD&A 2q17 costs and other 25
  26. 2Q and 1H 2017 Results – LUKOIL – slide 26
    Capital Expenditures RUB bln 130 1 (0) 1 (0) (7) (0) 0 0 (0) 125 1q17 Caspian West Siberia Russia W.Qurna-2 Uzbekistan Abroad Russia Abroad Other 2q17 (projects (Yamal) (ex. N.Caspian (ex. WQ-2 and in Russia) and Yamal)…
  27. 2Q and 1H 2017 Results – LUKOIL – slide 27
    Cash Flows Free cash flow before changes in working capital, RUB bln RUB bln 67 6 (30) 43 89 (125) 81 Sale of FCF 1q17 ex. WC Capex OCF ex. WC FCF 2q17 ex. WC 38 diamond business (62) 168 (10) 5 300 196 Cash…
  28. 2Q and 1H 2017 Results – LUKOIL – slide 28
    Free Cash Flow Before Changes in Working Capital and West Qurna-2 Project RUB bln 66 49 46 42 43 35 1q16 2q16 3q16 4q16 1q17 2q17 28
  29. 2Q and 1H 2017 Results – LUKOIL – slide 29
    Financial Position Net debt, RUB bln Debt maturity profile, RUB bln Cash and cash equivalents Total debt 860 446 699 Credit lines* 649 146 603 282 438 349 Net debt 261 300 257 Cash 300 118 100 85 48 16 2015 2016 1H17 As…
  30. 2Q and 1H 2017 Results – LUKOIL – slide 30
    2017 Outlook Upstream Growth in hydrocarbon production by 1-2% driven by gas ramp-up Increase in the share of high-margin barrels: Filanovsky, Pyakyahinskoe, Yaregskoe, gas production in Uzbekistan and others Growth of drilling…
  31. 2Q and 1H 2017 Results – LUKOIL – slide 31
    Q&A 31
  32. 2Q and 1H 2017 Results – LUKOIL – slide 32
    Financial Results RUB bln +1.5% 1,432 y-o-y 1,339 1,309 1,401 1,359 Revenue -5.6% 190 183 208 179 y-o-y 166 EBITDA -7.8% 86 97 y-o-y Profit 69 79 excluding FX effect and sale of 63 diamonds business 2q16…
  33. 2Q and 1H 2017 Results – LUKOIL – slide 33
    Revenue RUB bln 55 2,791 52 (3) 34 34 126 2,517 3 2 (29) Revenue Oil Oil Oil products Oil products Other Revenue 1H16 (Russia) (International) (Russia) (International) 1H17 Volume factor Price and structure…
  34. 2Q and 1H 2017 Results – LUKOIL – slide 34
    EBITDA RUB bln 12 387 382 (15) 21 (3) 2 (12) EBITDA in outside Russia in outside Russia Corporate Elimination EBITDA 1H16 Russia Russia and 1H17 other Exploration and production Refining, marketing and distribution…
  35. 2Q and 1H 2017 Results – LUKOIL – slide 35
    SG&A and Transportation Expenses SG&A Transportation Expenses RUB bln 93 (5) (3) 164 (3) (9) (20) (0) 76 0 141 1H16 Labor costs Other SG&A Share-based Provision for 1H17 1H16 Oil Refined products Other 1H17…
  36. 2Q and 1H 2017 Results – LUKOIL – slide 36
    Profit RUB bln 5 (18) 59 (9) 10 201 59 48 Effect of sale of diamonds business 105 1H16 Finance income / FX EBITDA Income tax DD&A 1H17 costs and other 36
  37. 2Q and 1H 2017 Results – LUKOIL – slide 37
    Consolidated Statement of Profit or Loss (in USD mln, at the average exchange rate for the period) 2q17 1q17 1H17 1H16 Revenue 23,803 24,347 Sales (including excise and export tariffs) 48,117 35,798 Costs and other deductions…
  38. 2Q and 1H 2017 Results – LUKOIL – slide 38
    Always moving forward

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