Consolidated Financial Results of the LOTOS Group Q2 2010 (IFRS)

Consolidated Financial Results of the LOTOS Group Q2 2010 (IFRS)

Consolidated Financial Results
of the LOTOS Group
p
Q2 2010 (IFRS)
Mariusz Machajewski – Vice President of the Management Board
26th August 2010
Grupa LOTOS S.A.
1
Q2’10 overall figures
2
Market p
position
3
Market Conditions
4
Upstream
5
Downstream
6
Overall financial results
Mariusz Machajewski – Vice President of the Management Board
2/24
Grupa LOTOS S.A.
Q2’10 OVERALL FIGURES
ƒ
Average benchmark refining margin in Q2’10 was 3.96 USD/bbl (+5.6% yoy),
ƒ
Average Brent dtd price amounted to 78.24 USD/bbl (+32.3% yoy)
ƒ
Brent/Ural differential increased by 97.0% yoy to 1.32 USD/bbl
ƒ
Crude oil production in the upstream segment amounted to 38.5 thousand tonnes
ƒ
Crude oil throughput in the downstream segment amounted to 2,061 thousand tonnes
ƒ
C
Consolidated
lid t d sales
l amounted
t d to
t 2,074
2 074 thousand
th
d tonnes
t
ƒ
Operating profit in Q2 2010 reached PLN 230.4 mln, while net loss was equal to PLN 645.6 mln
Mariusz Machajewski – Vice President of the Management Board
3/24
Grupa LOTOS S.A.
1
Q2’10 overall figures
2
Market p
position
3
Market Conditions
4
Upstream
5
Downstream
6
Overall financial results
Mariusz Machajewski – Vice President of the Management Board
4/24
Grupa LOTOS S.A.
MARKET POSITION
LOTOS ON THE POLISH MARKET
Fuel Consumption in Poland (‘000t)
ƒ
Grupa LOTOS share in wholesale
market in Poland
The changes on the Polish market are as predicted by Grupa LOTOS: the middle distillates
consumption is growing, gasoline consumption is constant or even decreasing, while the total
consumption of fuels is slightly growing.
ƒ
LOTOS Group’s share in gasoline, diesel and LHO wholesale markets increased yoy, accounting for a
t t l market
total
k t share
h
i
increase
b almost
by
l
t 2.2
2 2 pp. tto 29
29.6%
6% att end
d off June
J
2010
Mariusz Machajewski – Vice President of the Management Board
5/24
Grupa LOTOS S.A.
MARKET POSITION
DOMESTIC SALES
Domestic sales of key products (000’t)
+40%
ƒ
The above graph shows an increase in domestic sales of middle distillates in years 2007-2009 with a
stable figure of gasoline sales
Mariusz Machajewski – Vice President of the Management Board
6/24
Grupa LOTOS S.A.
MARKET POSITION
IMPORT
Middle distillates Grupa LOTOS
2009
Net import (000
(000’t)
t)
1 170
1,170
ƒ
As a result of growing production the share of middle distillates import in our domestic sales of these
products is decreasing
ƒ
The large figure from 2009 shows how Grupa LOTOS secured market for its new products
Middle distillates Poland
2009
Net import (000’t)
3,559
ƒ
Despite the growing production of Grupa LOTOS the Polish market of middle distillates remains
unbalanced
Mariusz Machajewski – Vice President of the Management Board
7/24
Grupa LOTOS S.A.
1
Q2’10 overall figures
2
Market p
position
3
Market Conditions
4
Upstream
5
Downstream
6
Overall financial results
Mariusz Machajewski – Vice President of the Management Board
8/24
Grupa LOTOS S.A.
MARKET CONDITIONS
KEY FACTORS
Refining margin
Crude oil prices
ƒ Positive impact of increase in Brent/Ural differential in comparison with Q2’09
ƒ Positive impact of great increase in refining margin qoq and a small increase yoy
ƒ Significant increase in crude oil prices yoy, small increase qoq
Mariusz Machajewski – Vice President of the Management Board
9/24
Grupa LOTOS S.A.
MARKET CONDITIONS
KEY FACTORS
FX rate
LIBOR 3M USD
ƒ The EUR/USD FX rate decreased by 9.4% qoq (end of Q1’10 to end of Q2’10)
Mariusz Machajewski – Vice President of the Management Board
10/24
Grupa LOTOS S.A.
1
Q2’10 overall figures
2
Market p
position
3
Market Conditions
4
Upstream
5
Downstream
6
Overall financial results
Mariusz Machajewski – Vice President of the Management Board
11/24
Grupa LOTOS S.A.
UPSTREAM
CRUDE OIL PRODUCTION AND SALES
Crude oil production (‘000t)
Crude oil sales ((‘000t)
000t)
+1%
-11%
ƒ
Production qoq decreased due to suspended production from B8 field
ƒ
The production figures for Q2 remain stable yoy
ƒ
YME Project:
j
oil platform
p
left Abu Dhabi, beginning
g
g of p
production p
planned in the end of 2010 if weather
conditions are good
Mariusz Machajewski – Vice President of the Management Board
12/24
Grupa LOTOS S.A.
UPSTREAM
FINANCIAL RESULTS
Net sales (PLN m)
EBIT (PLN m)
+28%
ƒ
+248%
EBITDA (PLN m)
+128%
Increase in net sales and overall results of the upstream segment resulted from an increase in Brent dtd crude oil
prices of 32.3% yoy
Mariusz Machajewski – Vice President of the Management Board
13/24
Grupa LOTOS S.A.
1
Q2’10 overall figures
2
Market p
position
3
Market Conditions
4
Upstream
5
Downstream
6
Overall financial results
Mariusz Machajewski – Vice President of the Management Board
14/24
Grupa LOTOS S.A.
DOWNSTREAM
+28%
CRUDE OIL THROUGHPUT
+68%
2061
1539
1577
1545
1160
2Q08
3Q08
4Q08
1Q09*
1514
1559
1615
3Q09
4Q09
1Q10
1229
2Q09*
2Q10
* Lower throughput in Q1 and Q2’09 due to maintenance shutdown
ƒ
Significant increase in crude oil throughput due to operating CDU/VDU unit
Mariusz Machajewski – Vice President of the Management Board
15/24
Grupa LOTOS S.A.
DOWNSTREAM
PRODUCTION AND SALES OF PRODUCTS AND GOODS
Production (‘000 t)
ƒ
Total sales reached 2,074 thousand tonnes (+15.2% yoy)
ƒ
Total production reached 2 234 thousand tonnes (+41.7% yoy)
Mariusz Machajewski – Vice President of the Management Board
Sales (‘000 t)
16/24
Grupa LOTOS S.A.
DOWNSTREAM
MARKET SHARE AND RETAIL SALES
Total market share
Retail Sales (PLN m)
+1.3 pp.
+20%
Retail Network
ƒ
Volume of retail sales increased by 4.6% yoy
ƒ
In comparison with Q2’09 the number of CODO and DOFO stations increased by 11 and 16 respectively, whereas
27 DODO station contracts have expired
ƒ
As of June 30th 2010 107 franchise agreements were signed
Mariusz Machajewski – Vice President of the Management Board
17/24
Grupa LOTOS S.A.
DOWNSTREAM
FINANCIAL RESULTS
Net sales (PLN m)
EBIT (PLN m)
+37%
ƒ
EBITDA (PLN m)
+26%
+28%
Increase in net sales of the downstream segment yoy was caused by higher crude oil and product prices as well
as by an increase in sales volume.
ƒ
Increase in EBIT yoy was a result of higher margins for middle distillates than in Q2 2009
ƒ
The EBIT in retail was PLN 3.7 m (vs -1.9 in Q2 2009)
Mariusz Machajewski – Vice President of the Management Board
18/24
Grupa LOTOS S.A.
1
Q2’10 overall figures
2
Market p
position
3
Market Conditions
4
Upstream
5
Downstream
6
Overall financial results
Mariusz Machajewski – Vice President of the Management Board
19/24
Grupa LOTOS S.A.
OVERALL FINANCIAL RESULTS
Q2’10 FINANCIAL RESULTS
2Q10
2Q09
Mariusz Machajewski – Vice President of the Management Board
20/24
Grupa LOTOS S.A.
OVERALL FINANCIAL RESULTS
OPERATING PROFIT ACCORDING TO LIFO INVENTORY VALUATION
LIFO effect = -187
LIFO effect = -253
ƒ
As a result of weakening PLN vs. USD in Q2 2010 and growing crude oil prices the LIFO effect was negative and
amounted to PLN -253.2 m
Mariusz Machajewski – Vice President of the Management Board
21/24
Grupa LOTOS S.A.
OVERALL FINANCIAL RESULTS
Liab
bilities
Assets
BALANCE SHEET
Mariusz Machajewski – Vice President of the Management Board
22/24
Grupa LOTOS S.A.
OVERALL FINANCIAL RESULTS
Q2’10 RESULT ON HEDGING
ƒ
Th EUR/USD FX rate
The
t decrease
d
(b 9.4%
(by
9 4% qoq)) negatively
ti l impacts
i
t the
th result
lt on hedging
h d i
Mariusz Machajewski – Vice President of the Management Board
23/24
Grupa LOTOS S.A.
OVERALL FINANCIAL RESULTS
Q2’10 RATIOS
EBITDA margin
EBIT margin
Net margin
g
Gearing ratio
Mariusz Machajewski – Vice President of the Management Board
24/24