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OMV Petrom contribution to the
Romanian economy
Andreas Matje, CFO OMV Petrom
Bucharest, September 16
Largest group in Romania & South-eastern Europe
► Privatized in 2004 to OMV AG (Austrian integrated oil and gas company)
► OMV Petrom is an integrated oil & gas player with international presence
(RO, MD, BG, SR, KZ)
► Market capitalization: EUR 5.9 bn, as of end of 2013
► Group turnover: EUR 5.5 bn (2013)
► Total Shareholders Return**: 16% in 2013
Shareholder Structure
9.36%
18.99%
51.01%
20.64%
OMV*: Austria’s largest listed industrial company and
integrated international oil and gas company
Property Fund: listed fund, ~90% of AUM invested
in the energy sector, managed by Franklin Templeton
State holding
Free float
*Shareholder since Dec 2004; ** Dividend yield plus share price increase in gross values (2013 vs 2012)
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OMV Petrom contribution to the Romanian economy
Operationally integrated oil & gas player
2013 FIGURES
Exploration and
Production
Romania
► 4 mn toe/yr crude oil and NGL
► 5.2 bcm/yr gas
► 707 mn boe proven reserves
Refining and Marketing
Oil: Supplies 100% of
oil for Petrobrazi
refinery
► Petrobrazi refinery
(4.2 mn t/yr capacity)
► 3.6 mn t marketing sales
► 785 filling stations (Romania,
Bulgaria, Serbia, Moldova)
(~11 yrs of current production)
Gas: 100% gas sales
to Romanian
customers
Kazakhstan
► 0.4 mn toe/yr crude oil and NGL
► 0.1 bcm/yr gas
► 21 mn boe proven reserves
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OMV Petrom contribution to the Romanian economy
Gas and Power
► Gas sales 4.9 bcm/yr (up to
40% of Romanian demand)
► Brazi gas-fired power plant (860
MW)
► Dorobantu wind park (45 MW)
Petrom has transformed from an inefficient state-owned
company into a high-performing private company
To...
From...
Corporate
governance &
Culture
Turnaround &
Operational
efficiency
HSSE3
1
4
►
►
►
‘State company mindset’
Bureaucracy
State interference in commercial
decisions
Large non-core businesses
Declining production and
aging underinvested assets
► Lack of management systems
►
►
►
►
►
Lack of monitoring systems
Low safety awareness
Limited HSSE trainings
►
►
►
►
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Professional organization
Two-tier management system
Blue chip on BSE Code1
A strategy incorporating
sustainability
Focus on oil & gas core
Stable production at 171 kboed with
lower costs (~USD 15 boe)
► Modern technology, facilities and
management systems
Transparency
and
performance
mindset
►
►
►
►
►
Bucharest Stock Exchange Code of Governance in adherence to OECD standards
Lost time injury rate for 2013 compared with 1.11 in 2004
4
Impact
OMV Petrom contribution to the Romanian economy
Security Management Plans
> 1.5 day/employee HSSE trainings
Safety Day
2 ROACE
as of 2013
3
ROACE2 19%
LTIR4 0.33
HSSE: Health, safety, security and environment
Pillar of stability and reliable partner for the Romanian
economy
2013 FIGURES
Largest private employer
Main energy supplier
~20,000 direct employees and
more than 50,000 indirect jobs
Accounts for ~40% of oil, gas
and fuel supply, and up to
10% of power generation
capacity in Romania
Largest investor in the
energy sector
Over EUR 1 bn/year
investments since privatization
Largest contributor to
state budget
EUR ~2.3bn in 2013 (~11%
share of non-consolidated
budget)1
1 Equivalent share of state budget income in 2013e (non consolidated); Include: profit tax, royalties, employer social
contributions, excises incl. custom duties, VAT, employee related taxes, other direct and indirect taxes, dividends paid to state
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OMV Petrom contribution to the Romanian economy
Evolution of financial indicators
Solid financial basis for growth and sustainable performance
Operating cash flows, RON bn
6.4
ROACE, %
7.2
8.0
16.5
11
12
19.0
10.7
4.6
2.7
2009
17.3
5.2
10
11
12
2013
146
10
2013
Gearing ratio, %
Capex / CFO
Operating
cash
ratio
flows / Capex ratio, %
134
2009
151
16
12
95
9
65
7
1
2009
|
10
11
12
2013
OMV Petrom contribution to the Romanian economy
2009
10
11
12
2013
Financial performance
Exploration & Production
Clean CCS EBIT 1/6/13 vs. 1-6/14
in RON mn
► Stable hydrocarbon production in
Romania
► Increased production costs in Romania
manily triggered by new construction tax
(1)%
3,017
2,724
146
Gas & Power
5,542
2,624
(83)%
2,702
173
121
(223)
25
(26)
► Weaker gas and power demand
► Depressed electricity prices
(30%)
Refining & Marketing
► Affected by the one month planned
1-6/13
E&P
G&P
1-6/14
R&M
C&O and Consolidation
refinery shutdown
► Lower marketing sales (higher excise &
increased competition)
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OMV Petrom contribution to the Romanian economy
We aim to remain the leading regional, integrated oil and gas
company with sustainable performance to support potential
upstream growth in the neighboring Black Sea region
C
B
A
Position for long-term growth
Enhance mid-term value
Sustain performance
2012
2014
Stabilize production through ►
field redevelopment, drilling,
workovers
►
Continue with operational
excellence
Optimize E&P portfolio
►
through partnerships
E&P
Bring Brazi CCPP on stream
Enhance value of equity gas
by strengthening gas sales
G&P
►
Modernize/improve efficiency
►
of Petrobrazi refinery
Revamp fuel storage network ►
R&M
2016
Increase ultimate oil and gas
recovery
Explore, appraise and start to
develop1 Neptun (Black Sea
deepwater)
Explore deeper and
frontier hydrocarbons
►
Enhance value of integrated
►
downstream (e.g. operating model)
Optimize R&M portfolio
Development subject to confirmation of commercial viability
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►
Optimize across commodities and ►
leverage fair market conditions
People. Develop a performance-based organizational
culture and skill pool to achieve business growth and
operational excellence
1
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OMV Petrom contribution to the Romanian economy
2021+
Explore additional opportunities in
the neighboring Black Sea
Explore unconventional
opportunities
Explore infrastructure needs
related to equity gas (Black Sea)
Explore development of a potential
Gas Hub, incl. from the perspective
of capitalizing on new discoveries
Explore partnership
opportunities
Resourcefulness. Develop a sustainability culture for efficient use of
natural resources, high safety and environmental standards and share
value with stakeholders for common long-term growth
Exploration & Production
First year of increased production in Romania,
while containing production costs
► Production was stabilized by
accelerating workovers and drilling,
deploying state-of-the-art technologies
and partnerships
► Production enhancement contracts
Kazakhstan
Group production, kboe/d
4.6
5.7
6.3
9.9
Romania
12.0
12.2
11.2
192.5 188.5 180.8 173.9 173.7 170.5 171.4
(PEC) for small fields with partners
2007
► Operational excellence for mature field
operations being deployed throughout
assets to contain production costs
► Examples:
08
09
10
11
12
2013
Romania production costs, USD/boe
18.0
16.8
14.6
16.1
15.9
► Modernization of facilities and equipment
14.9
15.0
12
2013
► Reduced mean time between well interventions
► Automation of metering points skids, parks, wells
and data acquisition
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OMV Petrom contribution to the Romanian economy
2007
08
09
10
11
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
Neptun Shallow (100% operatorship)
► 3D seismic completed; processing 3D seismic
data
XV Midia Block
► OMV Petrom (42.5%), ExxonMobil (Operator
42.5%)
► Transfer of the 85% participation to ExxonMobil
and OMV Petrom approved by Government
Ukraine
Skifska
► OMV Petrom part of a consortiunm led by
ExxonMobil
► PSA negotiations on hold
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OMV Petrom contribution to the Romanian economy