BAZAN Group Oil Refineries Ltd. First Nine Months and Q Results. November 2012

Transcription

1 BAZAN Group Oil Refineries Ltd. First Nine Months and Q Results November

2 Disclaimer This presentation has been prepared by Oil Refineries Ltd. (the "Company") as a general presentation of the Company and its financial results. The information included in the presentation and any other information communicated by the Company while the presentation is being given (all such information as aforesaid or any part thereof - the "Information") is presented for convenience purposes only. The Information does not constitute a basis for investment decision, or replace the need for carrying out independent collection of information and analysis of the Information nor does the Information purport to make or give any recommendation and/or opinion and/or to substitute for the independent judgment of any potential investor. The Company does not warrant the completeness or accuracy of the Information and it disclaims any responsibility for any damages and/or losses whatsoever resulting from the use of the Information. In case of contradiction or inconsistency between the Information and information recorded in the Company's ledgers and/or appearing in official publications, such recorded information will prevail. The Information may contain various forward-looking statements based on current data and expectations. Actual operations, results and other data may differ materially from those stated in such forward-looking statements, owing to various uncertainties and risks, including the risk factors referred to and discussed in the Company's financial statements and Management Discussion and Analysis as published by the Company. The Company assumes no obligation to update the said data and expectations or any other part of the Information. 3

3 Agenda Current Status Strategic Plan Operating Environment First Nine Months and Q Results 4

4 Current Status Natural gas Hydrocracker progress Funding sources Organizational restructuring 5

5 Strategic Plan Conversion of HVGO HDS to Mild Hydrocracker Completed in June 2010 Increased Gasoil refining capacity of 3-4% Completed Crude Unit 4 Shutdown and Upgrade Increased refining capacity to 197kbpd Increased refining flexibility for larger variety of crudes Synergies from merging ORL with Carmel Olefins Leveraged synergies for polymer production: a $45m investment expected to yield $30m/yr (pending on gas availability). Project running since end Jan Expanding Propylene/Polypropylen production: a $90m investment expected to yield $55m/yr. Hydrocracker Investment Investment as of June 30, 2012 at $470 million Transitioning from running to activation Commercial activation planned for end of Q4 12 Transition to Natural Gas The Company has converted all of its facilities to be able to receive natural gas 6

6 Operating Environment Crude Oil Prices (USD/BBL) /10 03/11 06/11 09/11 12/11 03/12 06/12 09/12 Continue to operate in highly volatile market, characterized by unstable political and economic factors By end Q3 12, crude oil prices totaled $111/barrel, up 4% from the start of 2012 and up 17% since the start of the quarter Oil futures retreated from the second of and onwards 7

7 Operating Environment Mediterranean Ural Cracking Margin ($/BBL) Average USD/BBL 12 : $1.2 Q1 12: $3.0 Q2 12: $5.6 Q3 12: $ /10 03/11 06/11 09/11 12/11 03/12 06/12 09/12 8

8 Operating Environment Mediterranean Product Margins ($/BBL) 30 CIF Product Prices as compared with Brent Crude Oil Prices Gasoline Diesel Fuel Oil 9

9 Operating Environment Assessment of National Transportation Fuel Demand (Thousand Tons) 3% Q1-3 11: 4,704 Q1-3 12: 4,776 Delta: +2% 3% -6% Source : National Infrastructure Ministry 10

10 Operating Environment Petrochemical Products ($/Ton) 1,200 1,000 Polymer Prices Above Naphtha Polypropylene Polyethylene ,000 Aromatics Prices above Gasoline Xylene Paraxylene

11 800 First Nine Months and Q Results Refining & Production (Thousand tons) 700 6,379 6, Refining Aromatics (Gadiv) Polymers (CAOL) Lube Oils (HBO) Q1-3 '11 Q1-3 '12 12

12 First Nine Months and Q Results ORL Refining Margin vs. Regional Benchmark ($/bbl) Q1 3 Q Q3 Q Ural Crack Med ORL (Adjusted) Note: Adjusted margin is ORL s refining margin calculated for comparison purposes and excludes impact of inventory w\o and gains as well as IFRS 13

13 First Nine Months and Q Results P&L Account First Nine Months 2012 ( $ millions) Refining Polymers (CAOL) ( 44) ( 44) Aromatics (Gadiv) Lube-Oils (HBO) ( 4) ( 4) Q Q Reported Adjusted Reported Adjusted (34) Trade ( 7) ( 7) ( 19) (19) Adjusted Consolidated ( 3) ( 3) ( 1) (1) Cons. Operating Profit (loss) ( 20) Amortization of excess cost ( 20) ( 20) ( 20) (20) Financing Expenses ( 114) ( 114) ( 69) (69) Subsidiary losses ( 5) ( 5) ( 8) (8) Tax Benefits ( 17) Net Profit (Loss) ( 126) ( 107) ( 1) (62) Consolidated EBITDA Note: In the refining and trade sector, EBITDA and margin are presented net of inventory and IFRS impact 14

14 First Nine Months and Q Results P&L Account Q ($ millions) Refining Polymers (CAOL) Aromatics (Gadiv) Lube-Oils (HBO) ( 1) ( 1) Q3 12 Q3 11 Reported Adjusted Reported Adjusted ( 14) (6) 10 ( 9) (9) Trade ( 5) ( 5) ( 7) (7) Adjusted Consolidated ( 4) ( 4) ( 1) (1) Cons. Operating Profit (loss) ( 5) Amortization of excess cost ( 7) ( 7) ( 7) (7) Financing Expenses ( 48) ( 48) ( 21) (21) Subsidiary losses ( 2) ( 2) ( 5) (5) Tax Benefits (2) Net Profit (Loss) ( 21) ( 27) ( 38) (32) 3 3 Consolidated EBITDA Note: In the refining and trade sector, EBITDA and margin are presented net of inventory and IFRS impact 15

15 First Nine Months and Q Results Change in Adjusted Operating Profit Q ($ millions) Operational Profit Q3'11 Refining Margins Petchem cotribution Quantity affect Other income רווח תפעולי OPEX Q3'12 16

16 First Nine Months and Q Results Cash Flow Q ($ millions) Cash Income on a cash Basis Change in Working Capital Increase in Deposits Short Term Financing Fixed Assets Purchases Long-term Bank Financing Received Long-term Bank Financing Repayed Bond Repayment Interest Cash

17 First Nine Months and Q Results Change in Consolidated Net Debt 2012 ($ millions) 2,298 2,599 1,972 2,154 Dec. 31, Mar. 31, 2012 Jun. 30, 2012 Sep. 30,

18 First Nine Months and Q Results Balance Sheet, September 30, 2012 ($ millions) Current Assets Cash & securities Other current assets Inventory 1,014 1,083 2,199 1,938 Non Current Assets Other NC assets Property, plant & eqpmt. 2,376 2,245 2,698 2,570 Current Liabilities Current Fin. liabilities Other current liabilities 1, ,485 1,772 Non Current Liabilities NC fin. liabilities 1,377 1,581 Other NC fin. liabilities ,488 1,716 Capital Shareholder s Capital 924 1,020 4,896 4,508 4,896 4,508 19

19 Thank You 20