OMV Results January December and Q4 2014 February 19, 2015 OMV Aktiengesellschaft
2014 full year results and strategy Gerhard Roiss, Chairman of the Executive Board and CEO OMV Aktiengesellschaft
2014: Year of delivery Delivery 2014 results Production growth 8% y-o-y despite Upstream results impacted by lower oil shortfall in Libya price and Libya shortfall Shift of asset base to Upstream focus Strong Downstream results…
HSSE: Safety is our top priority Strong safety improvement record LTIR 1 OMV Group 0.7 0.7 0.5 -37% 0.4 2011 2012 2013 2014 1 Lost-Time Injury Rate: Number of lost time injuries per 1 mn hours worked 4 OMV Group,…
Difficult market environment 2014 Brent oil price in USD/bbl 108 01/2014 Collapse of Brent price in H2/14 European gas prices continuously weak after record low in H1/14 Instability in Middle East and North Africa Industry…
Financial performance in 2014 Clean CCS EBIT Exploration and Production in EUR mn Production increase by 8% to 309 kboe/d (2013: 288); 2,645 Q4/14 production: 318 kboe/d Higher depreciation and production costs 2,238 (15)% Gas and…
2014: Delivery of strategic targets as announced in 2011 Stabilized production in Romania and Austria at 200-210 kboe/d R&M divestment program of EUR 1 bn energize OMV successfully delivered: +2% points ROACE improvement…
2014: Significant milestones achieved Upstream growth Successful build-up of North Sea region position Norway hit 50 kboe/d mark Exploration success in Wisting potential of 200-500 mn boe Black Sea: 3rd exploration well…
Selected Highlights 2014 Norway ramp-up and Petrobrazi modernization Norway hit 50 kboe/d, 2 in OMV Petrobrazi modernization meets expectations Upstream portfolio, in kboe/d Clean CCS EBIT 50 45 40 35 30 25 20 15 01/14 03/14 05/14…
Priorities 2015+ Mid-term goal: free cash flow Cash and neutrality after dividends dividend EUR 1.25 per share for 2014 1; maintaining dividend policy key priority Upstream Deliver post-FID projects growth Preserve options for…
Decisive actions to adjust to low oil price environment in EUR bn (20-35)% 3.9 2.5 - 3.0 Re-prioritize investment in mature core Reduce capital Re-phase projects expenditure Previous guidance Avg. avg. 2014-16 p.a. 2015-17…
OMV is resilient in difficult times Portfolio less sensitive to Balanced result through North Sea region: Increasing oil price drop integration share of E&P cash generation OMV production share, 2014 Share Clean CCS EBIT, Q4/14 Cash…
Results Q4/14 David C. Davies, Deputy Chairman of the Executive Board and CFO OMV Aktiengesellschaft
Q4/14 Highlights Clean CCS EBIT in EUR mn Production at 318 kboe/d, up by 15% 545 Average Brent price down by 30% to USD 77/bbl 443 Lower exploration expenses offset by higher 262 depreciation and production costs in E&P Lower…
Results in Q4/14 in EUR mn Q4/14 Q4/13 Clean CCS net income attributable EBIT (424) 99 n.m. to stockholders 1 in EUR mn Financial result (70) (80) (13)% Profit from ordinary activities (493) 19 n.m. Taxes 150 41 n.m. 348…
Special items and CCS effect Q4/14 in EUR mn Q4/14 Q4/13 in EUR mn 545 Clean CCS EBIT 545 443 CCS gains/(losses) (296) (43) (296) Clean EBIT 249 400 (12) Personnel related costs (12) (12) (590) Unscheduled depreciation (590)…
Cash flow 2014 in EUR mn in EUR mn 2014 2013 Net income 613 1,729 (65)% (410) 405 Depreciation and 3,058 2,296 33% amortization Other (410) (548) (25)% 3,058 Sources of funds 3,262 3,476 (6)% (3,910) Change in net working 405…
CAPEX and EBITD 2014 in EUR mn Key investments in Q4/14 4,110 3,832 Romania and Austria: drilling, workovers and field redevelopments Field developments in Norway (Edvard Grieg, Gullfaks, Aasta Hansteen and Gudrun) 2,951 3,292…
Exploration and Production Clean EBIT in EUR mn Q4/14 vs. Q3/14 Q4/14 vs. Q4/13 455 (108) (214) 158 75 (53) (37) 262 257 (69) 262 37 (209) 234 Q3/14 Realization Volume Exploration DD&A Other Q4/14 Q4/13 Realization…
Exploration and Production Key Performance Indicators Hydrocarbon production (kboe/d) Q4/14 vs. Q3/14 318 Production up by 2% 311 297 311 277 Norway production ramped-up as two 162 145 163 164 new Gudrun wells came on stream 138…
Exploration and Production OMV Petrom group Hydrocarbon production (kboe/d) Q4/14 vs. Q3/14 181 182 180 178 182 Clean EBIT at EUR 128 mn (down by 59%) Higher production volumes 87 87 84 84 84 More than offset by lower oil price…
Gas and Power Clean EBIT in EUR mn Q4/14 vs. Q4/13 (41) 4 80 0 (2) 41 Q4/13 Supply, Gas logistics Power Other Q4/14 marketing and trading Higher impact of the price revision in Q4/13 than in Q4/14, lower LNG result…
Gas and Power Key Performance Indicators Gas sales and trading volumes in TWh Q4/14 vs. Q4/13 147 132 118 118 Gas sales volumes down by 4% mainly 89 due to lower demand in Austria Gas trading volumes up by 37% Q4/13 Q1/14…
Refining and Marketing Key Performance Indicators Refining utilization rate in % Q4/14 vs. Q4/13 103 101 96 90 95 88 92 90 82 Overall refining utilization rate at 59 86%, down by 9% Marketing sales volumes decreased due to…
Financial priorities 2015+ Cash Mid-term goal: free cash flow neutrality after dividends 2014 dividend proposal EUR 1.25 per share 1 Dividend Maintain dividend policy of long-term payout ratio of 30% of net income Maintain…
Actions to enhance cash flow Group CAPEX reduced in EUR bn Strong focus on CAPEX and OPEX Previous guidance: efficiency 3.9 2.5 - 3.0 Further ramp-up of Norwegian production ongoing 3.1 Projects in execution will contribute…
Outcome long-term USD 50/bbl stress test: Operations resilient, growth path impacted 1 Current operations resilient 2 Growth path would be impacted 80% of current production Slow-down of growth path EBIT positive Re-engineering…
Sensitivities on OMV Group Operating EBIT cash flow Libyan production Libyan production 2015 impact in EUR mn 100% 0% 100% 0% Brent oil price (+USD 1/bbl) +50 +40 +40 +35 OMV indicator refining +100 +100 +75 +75 margin (+USD…
Upstream Jaap Huijskes, Executive Board member responsible for Upstream OMV Aktiengesellschaft
Highlights 2014 309 kboe/d average production 8% production increase (2013: 288 kboe/d) Norway hit 50 kboe/d mark Mature core: Stabilized production at 200-210 kboe/d Norway, Pakistan and New Zealand compensating political unrest…
Operational highlights Projects update Exploration Gudrun, Norway Maari, New Zealand Black Sea Gudrun (Norway) production ramping up Seven new licenses offshore Croatia Maari Growth (New Zealand): Seismic finalized in Gabon and…
Upstream priorities 2015+ Gudrun, Norway Safety and Safe operations performance Increase operational efficiency Flexibility and Managing expenditures and optionality Manage investment level cash Adjust further if…
Mid-term CAPEX down by EUR 0.7 - 1.1 bn p.a. CAPEX adjustments Planning in a range of scenarios in EUR bn From mid-term recovery to USD 50/bbl for Previous guidance: 3.1 an extended period Exploration Other projects pre-FID 2.0 -…
High focus on reducing cost base Strong cost management in recent years 2015 OPEX reduced Tight contractor management Production cost indexed, 2008=100 Purchasing cost reduction 250 High focus on additional cost reduction 200…
Mature core: minimizing the decline Beating the decline Cost / CAPEX reductions have production Production in Romania and Austria, in kboe/d impact, no compromise on HSSE top priority CAGR Prioritized drilling and workover…
Key projects in execution will be delivered Schiehallion Aasta Hansteen Adding 80 kboe/d in the mid-term 80 60 On stream 2017 On stream 2018 40 Peak 12 kboe/d Peak 18 kboe/d 20 0 Edvard Grieg 2016 2017 2018 2019 2020…
Production guidance Production in kboe/d 400 kboe/d still within reach, speed of delivery reduced 400 2 Ramp-up will continue at slower pace Key projects in execution slowed down where possible Up to 340 Reduced tail-end…
Self funded, profitable growth Upstream free cash flow neutral Flexible and financially robust portfolio in the mid-term Self funded expenditure profile Providing flexibility and optionality Resilient even in a prevailing low…
E&P going forward ZERO fatalities North Manage cash flow Sea region Black Deliver growth Sea Optimize portfolio Core Stable core countries Focus on best opportunities North Sea Retain options Sub- Saharan Africa Black Sea…
Downstream Manfred Leitner, Executive Board member responsible for Downstream OMV Aktiengesellschaft
Key achievements Downstream Oil: Downstream Gas: Strategic milestones First steps towards completed restructuring Divestments completed Refining capacity reduced by 1/3 Gazprom renegotiation finalized successfully Marketing…
Market environment improved towards year-end Margins picked up significantly Spread increased again OMV indicator refining margin (left axis) Border contract tracker Ethylene/propylene net margin (right axis) CEGH USD/bbl EUR/t…
Downstream business supports OMVs resilience to lower oil price environment Stable Downstream contribution in Increasing share of Groups Clean CCS EBIT lower oil price environment % of Groups Clean CCS EBIT Clean CCS EBIT, in EUR…
Petrochemicals integration adds significant value to R&M business Petrochemicals business contributes strongly to R&M results OMV increases the petrochemical capacity OMV R&M Clean CCS EBIT in EUR mn in kt/a Benzene and Butadiene…
Downstream priorities 2015+ Cash Strong free cash flow One downstream organization Integration Strong value chain integration Restructure non-core G&P assets Performance Strong focus on efficiency and operational…
Integrated Downstream Gas Focus on cash generation Improve core business Operating cash flow 1 Maintain gas sales market position in weak demand environment and optimize margin Maximize value of equity gas Strict cost and CAPEX…
Outlook and Conclusions Gerhard Roiss, Chairman of the Executive Board and CEO OMV Aktiengesellschaft
Outlook 2015 Oil price Expectations range between USD 50 to 60/bbl Gas markets Remain challenging portfolio under review Refining margins Expected to come down from recent highs Marketing volumes Lower product prices expected to…
In a nutshell Focus on cash flow and dividend Continue to deliver upstream growth Strong focus on CAPEX and OPEX efficiency 52 OMV Group, Results January - December and Q4 2014
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