OMV Investor Presentation November 2014 OMV Aktiengesellschaft
OMV an integrated, international oil and gas company Upstream Downstream Exploration and Production Gas and Power Worldwide activities, Gas sales business in mature core countries: CEE, SEE and Turkey Romania and Austria Gas-fired…
Exploration and Production Exploration only Proved Exploration and Production Production 2013 Reserves 1 Region mn boe kboe/d mn boe North Core Countries 75.2 206 805 Sea Region Black Black Sea and Caspian 4.1 11 21 Sea North Sea…
Gas and Power Figures from 2013 Equity gas supply Build up 60 TWh (5.3 bcm) gas position Gas sales 140 TWh (13.2 bcm) Captive use through 1.7 GW Brazi 860 GW gas-fired power generation Maintain position Gas logistics…
Refining and Marketing Figures from 2013 Refining Capacity 17.4 mn t/year 1 92% utilization Refined product sales: 31.5 mn t Fuels storage capacity: 4.5 mn m - thereof seaside: 1.4 mn m Marketing Filling stations: 4,192…
Our strategy is simple and clear Grow upstream Optimize downstream Focused integrated profitable 7 OMV Group, Investor Presentation
What we promised in 2011 Asset base in % We aim to be a focused, 45 Downstream integrated oil and gas 65 company with improved overall profitability and 35 55 Upstream strong growth in upstream OMV OMV target portfolio portfolio…
Transforming OMV: We are delivering ahead of schedule Portfolio shift to upstream Asset base in % 49 45 Downstream 65 51 55 Upstream 35 2010 2013 2014E From low-return downstream…
Downstream: Cash for upstream growth Strong free cash flow from downstream 1 in EUR bn Executed downstream divestments 2 Significant net working capital reduction 1 Strong operational performance in oil downstream (e.g. 92%…
Main strategic targets of OMV Group Main target Status Stabilized production in Romania and Austria: 200-210 kboe/d until 2014 206 kboe/d in 2013. Target extended to 2016 288 kboe/d in 2013. Portfolio now in place to Production…
Portfolio in place to deliver 400 kboe/d Production kboe/d 2010 318 2011 288 Impacted by 2012 303 political Production 2013 288 unrest 1 Project Country Type 2 FID start 4 Norway FRDs Romania Oil/Gas 2013-2015 Tunisia FRDs…
Long-term growth out of exploration Focused exploration strategy Portfolio renewal and growth Black Increased share of high impact exploration North Sea Sea Maximizing existing footprint and entering Region new basins E&A…
Key financial indicators Gearing ratio in % 33 35 30 29 12 Key financial principles Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Long-term gearing ratio target of 30% Payout ratio and DPS 1.20 1.25 Maintain a strong investment grade rating…
Financial performance in 9m/14 Clean CCS EBIT Share of total Exploration and Production in EUR mn Clean CCS EBIT 1 Production increased to 306 kboe/d, supported 2,202 by Norwegian volumes. Results were impacted 79% by the political…
Highlights Black Sea: Domino-2 well completed; Pelican South-1 currently drilling North Sea Region: Norway: Production increased to 40 kboe/d, Gudrun on stream Wisting area potential of 200-500 mn boe confirmed Downstream…
energize OMV: +2% points ROACE increase in 2014 on track As of June 30, 2014 ROACE impact Date of Progress since status June 30, 2014 finalization program start Stabilize production in Austria and 2014 Romania Accelerate…
Expected ROACE impact in 2014 As of June 30, 2014 Impact of energize OMV on ROACE in 2014 (in % points) Major achievements : 2% target 14,000 boe/d produced by energize initiatives mainly from Romania and Austria in 2014 0.3% to…
Gas market liberalization in Romania Gas prices in Romania in EUR/MWh 1 Regulated non-households: H2/14 price set at Q2/14 level; deadline for price deregulation: December 31, 2014 29 29 28 28 28 27 Regulated households: Q4/14…
ExxonMobil BP Shell Chevron Petrobras Supermajors Total Statoil ConocoPhillips Majors Eni Novatek Anadarko Occidental 21 OMV Group, Investor Presentation Apache Devon Energy Chesapeake Entitlement production,…
OMV E&P asset base 2,580 2,824 Key figures 2013 Clean EBIT 2,099 2,154 2,086 EUR mn 1,517 OMV produced an average of 288 kboe/d and its proven reserves amounted to 1,131 mn boe 2008 2009 2010 2011 2012 2013 Production…
Did you know, that OMV Recovery factor is excellent in exploiting mature Oil fields, % OMV 28-60 1 assets Best in class fields 2 30-60 Exploration success rate 3 is a successful explorer % OMV 45-60 4 Industry average…
First priority Health, Safety, Security and Environment Lost-Time Injury Rate 1 Improvement focus E&P group-wide -50% Visibility and Leadership 1.29 Consequence Management Process Safety 0.66 Contractor Management Incident…
More than 1 bn barrels in the project pipeline New ventures Exploration Appraisal Development Execution Middle East Black Sea Domino (Black Sea) FRDs (Romania) FRDs (Romania) Africa Norway FRDs (Austria, Romania) FRDs (Austria)…
Mature core: Stabilizing production Beating the decline Highest ultimate oil recovery rates (60%) Production in Romania and Austria, kboe/d CAGR State-of-the-art oil recovery technologies Production share IOR/EOR 1 (25% Romania, -3%…
North Sea Region: Significant position built up Gudrun Development Production Norway: 5 Projects from successful acquisitions kboe/d Gullfaks, Gudrun (producing) Gudrun Aasta Hansteen Edvard Grieg, Aasta Hansteen (in execution)…
E&P project update Exploration only Exploration and production Continuous strong project pipeline (1 bn boe) Rosebank Gudrun Gudrun (Norway): Production ramp-up producing with three wells at 17 kboe/d 1 (net to OMV) Rosebank…
Major project start-ups beyond 2016 OMV production Project Country Type 1 Start-up 2 kboe/d Execution Aasta Hansteen Gas 2017 Rosebank Oil under revision Develop- 400 FRDs Oil/Gas 2017+ ment Zidane Gas t.b.d. 288 Domino Gas end…
Exploration: Focus on three key regions Significant position in 2013 132,000 km2 acreage 1 123 licenses in 17 countries Black North Sea Sea Region Several high impact wells Extending positions in North Sea Region and Black…
E&P created a substantial exploration position Number of exploration licenses 116 123 Portfolio renewal and growth: (32) 39 61% of licenses and 42% of acreage area 2 renewed in 2012 and 2013 End 2011 Relin- Added End 2013 quished…
OMV has a successful exploration track record 56% average success rate 1 Discovered technical resources 3 mn boe, 3 year average Increasing resource delivery 150% 250-300 273 Unit finding costs decreased by 40% 2 108…
Exploration North Sea Region (Norway, United Kingdom, Faroe Islands) Drilling further three high impact wells 2015 in the region Norway: Drilling campaign in under-explored Barents Sea Additional appraisal drilling planned for…
Exploration Black Sea Neptun Deep (Romania) OMV Petrom (50%), ExxonMobil (Operator, 50%) Domino-1 gas discovery in 2012: a play opener; Drilling campaign 2014/15: Domino-2 well drilling completed, data under evaluation; Pelican…
Exploration update and high impact wells 1 Exploration only New ventures Exploration and production Georgia: Memorandum of Understanding signed in September North Sea Atlantis, Seismic Wisting Apollo Gabon: 8,500 km 3D seismic…
Creating a sustainable business: Improving reserve replacement ratio Proved reserves/production Reserves replacement ratio improving 2013 1, years ExxonMobil 16 Proved (1P) RRR Proved + Probable (2P) RRR BG Group 15 3 year average,…
Major projects under development New ventures Exploration Appraisal Development Execution Production Peak Project Working Project Country Type 2P reserves Operated start 1 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 1 production interest primary year mn boe % FRD Romania Oil/Gas 2014-2017…
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 2013 gas demand in line with 2012 H1/13 demand up due to colder than average weather, but counterbalanced…
Consequences of oversupplied markets EUR/MWh NCG NBP Zeebrugge CEGH Border contract tracker TTF PSV Long-term supply decoupled Hub prices across Europe Low summer/winter spreads, but from oil-indexation converge current forecasts…
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: Norwegian fields contribute to OMVs increasing integrated gas position in Europe Build up gas position First significant equity gas volumes from Gullfaks and Gudrun Additional volumes from Aasta Hansteen Maintain…
Gas to Power: Spark spreads affected by weak market conditions EUR/MWh Spark spreads, Turkey Short-term outlook expected to remain challenging 23 Moderate demand growth 18 16 15 Substantial capacity additions (4 GW in 2013) 10…
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:…
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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)…
Divestments of up to EUR 1 bn on track EUR 1.0 bn Divestment program 1 Additional working EUR 0.6 bn capital sales November February March K-PET Marketing business Croatia 45% stake in Marmara terminal (Turkey) 2011 2012…
European refineries will face competitive pressure from other regions; more closures to follow Pressure on Europes oil product market, Further 10% closures in mid-term impacting especially coastal refineries required for refinery…
OMV downstream market grows despite European trend EU-28 market 1 OMV market 1, 2 in mn t 2013-23, mn t 605 107 103 546 +3% -10% Turkey Turkey 2013 2023 2013 2023 1Oil market products: LPG, naphtha, gasoline, jet/kero,…
Modernization of upstream integrated refinery Petrobrazi led to significant yield improvements 2010 2011 2012 2013 2014 2015 Concept, Execution phase Crude distillation Coker upgrade & Vacuum gasoil First full year of…
Petrochemicals integration adds significant value to the refining margin Petrochemicals margin impact on the refining business OMV increases the petrochemical capacity OMV West kt/a Indicator Refining margin Benzene and Butadiene…
Borealis contributes strongly to R&M results Borouge 3 is in the start-up phase; full Solid contribution to OMVs bottom line capacity on stream by year end 2014 from Borealis (OMV share 36%) kt p.a. EUR mn 2,470 4,470 960 186…
Retail focus of OMV is on operational excellence Efficient sites in core markets Retail way forward 2013, throughput per station in mn liters Brand portfolio designed to maximize value 5 OMV of different customer groups 4 Country…
Strong business integration and further increased asset utilization Domestic equity crude % of refining capacity Competition 2013 1 11% OMV 2013 21% OMV 2015 25% Refinery E&P Refining utilization rate 2 Retail sales vol. % of…
Q3/14 Highlights Clean CCS EBIT in EUR mn Average Brent price down by 8% to USD 102/bbl 619 656 Production at 311 kboe/d, up by 13% Higher depreciation and production costs in E&P 455 Exploration expenses at EUR 138 mn, up by…
Results in Q3/14 Clean CCS net income attributable in EUR mn Q3/14 Q3/13 to stockholders in EUR mn 1 EBIT 570 576 (1)% Financial result (31) (66) (53)% Profit from ordinary activities 539 510 6% Taxes (195) (135) 45% 281 263…
Special items and CCS effect Q3/14 in EUR mn Q3/14 Q3/13 in EUR mn Clean CCS EBIT 656 619 656 CCS gains/(losses) (62) 53 (62) 570 (1) (4) 4 Clean EBIT 593 673 (22) Personnel related costs (22) (6) Unscheduled depreciation (1)…
Cash flow 9m/14 in EUR mn in EUR mn 9m/14 9m/13 Net income 957 1,669 (43)% (212) Depreciation and 1,888 1,550 22% (412) amortization 1,888 Other (212) (574) (63)% Sources of funds 2,633 2,646 0% 957 Change in net working (412)…
CAPEX and EBITD 9m/14 in EUR mn Key investments in Q3/14 3,365 Romania: drilling, workovers and field redevelopments 2,766 Field developments in Norway (Gullfaks, Aasta Hansteen, Edvard Grieg and Gudrun) 2,625 Schiehallion…
Exploration and Production Clean EBIT in EUR mn Q3/14 vs. Q2/14 Q3/14 vs. Q3/13 (60) 578 201 (120) (74) 455 (70) 455 21 2 3 349 135 (54) Q2/14 Realization Volume Exploration DD&A Other Q3/14 Q3/13 Realization Volume…
Exploration and Production Key Performance Indicators Hydrocarbon production (in kboe/d) Q3/14 vs. Q2/14 311 297 311 275 277 Production up by 5% 162 145 163 142 138 Libyan production partially resumed Norway production ramped up…
Exploration and Production OMV Petrom group Hydrocarbon production (in kboe/d) Q3/14 vs. Q2/14 182 181 182 180 178 Clean EBIT at EUR 311 mn (up by 4%), mainly due to 88 87 87 84 84 lower production costs and exploration expenses…
Gas and Power Clean EBIT in EUR mn Q3/14 vs. Q3/13 1 11 14 11 (15) 7 Q3/13 Supply, Gas logistics Power Other Q3/14 marketing and trading Better gas supply mainly due to reduction of oil price related supply Improved…
Gas and Power Key Performance Indicators Gas sales and trading volumes in TWh Q3/14 vs. Q3/13 132 118 118 Gas sales volumes down by 22% mainly 86 89 due to lower gas demand from power plants and wholesale customers Gas trading…
Refining and Marketing Clean CCS EBIT in EUR mn Q3/14 vs. Q3/13 1 19 88 206 98 Q3/13 Fuels Petrochemicals Marketing Q3/14 Higher OMV indicator refining margin and optimized refining asset portfolio Higher propylene…
Refining and Marketing Key Performance Indicators Refining utilization rate in % Q3/14 vs. Q3/13 103 94 90 96 90 95 88 92 90 Overall refining utilization rate at 59 97%, up by 4%-points Marketing sales volumes decreased driven…
Outlook 2014 Oil price 2014 average USD 100/bbl G&P markets remain highly challenging Refining margins remain under pressure Marketing volumes remain under pressure Production 310 kboe/d CAPEX EUR 3.9 bn (80% E&P) E&A 1…
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 Petrobrazi…
SRI ratings and indices Oekom research evaluated the social and environmental performance of 26 major oil and gas companies worldwide. OMV achieved Prime Status with a rating of B- on a scale from A+ to D-. [2012] OMV was added in…
Credit ratings Commitment to strong investment grade credit profile Enhances the Companys high level of transparency with investors June 30, 2014 August 19, 2014 Senior unsecured: A3, outlook stable Senior unsecured: A-, outlook…
Funding activities of the last years brought OMV in an excellent position As of September 30, 2014 Date of issue Bond Amount Coupon Maturity June 2009 Eurobond (XS0434993431) EUR 250,000,000 5.25% fix 06/22/2016 November 2013…
Overview debt structure and breakdown As of September 30, 2014 1,600 Money market borrowings Bilateral, syndicated, other loans Debt EUR 5,770 mn 1,400 Cash EUR 420 mn Eurobonds 1,200 Net debt EUR 5,350 mn German Loan…
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