BAZAN Group Oil Refineries Ltd. Second Quarter 2013 Results. August 2013

Transcription

1 BAZAN Group Oil Refineries Ltd. Second Quarter 2013 Results August

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. 2

3 Current Status The Company successfully achieved key elements of its strategic plan including the successful launch of the hydrocracker and having 100% of the Company s natural gas needs met. Second quarter 2013 net loss totaled $31 million compared with an loss of $46million in the same quarter last year. Results were negatively impacted by a malfunction in one of its facilities, totaling about $15 million Adjusted operating income totaled $16 million compared with an operating loss of $29 million in the same quarter last year. In the second quarter of 2013, the adjusted refining margin totaled $4.2 per barrel, as compared with the average Reuter s quoted Mediterranean Ural Cracking Margin of $2.5 per barrel. Cash flow from operating activities totaled $55 million. Improvement operating income in polymers sector for the second quarter that totaled $14 million, compared with an operating loss of $49 million in the corresponding quarter last year. Attributed to the improvement in polymer spreads over Naphtha and the Company s transition to natural gas use 3

4 Operating Environment Crude Oil Prices (USD/BBL) /11 03/ 06/ 09/ / 03/13 06/13 Continue to operate in highly volatile market, characterized by unstable political and economic factors By end Q2 13, crude oil prices were $103/barrel, down 7% from the start of the year Oil futures retreated from Q2 of 2011 and onwards 4

5 Operating Environment Mediterranean Ural Cracking Margin ($/BBL) Average Margin : $ $/Bbl 3.0 $/Bbl 5.6 $/Bbl $/Bbl / 04/ 07/ 10/ 01/13 04/13 07/13 Source: REUTERS Daily Margin Average Margin 5

6 Operating Environment Mediterranean Product Margins ($/BBL) CIF Product Prices as compared with Brent Crude Oil Prices Gasoline Diesel Fuel Oil 6

7 Operating Environment Assessment of National Transportation Fuel Demand (Thousand Tons) + 2% Source : National Infrastructure Ministry 7

8 Operating Environment Petrochemical Products ($/Ton) 1, Polypropylene Polyethylene Polymer Prices Above Naphtha Xylene 03 Paraxylene Aromatics Prices above Gasoline

9 800 Second Quarter 2013 Results Refining & Production (Thousand tons) ,238 2, Refining Aromatics (Gadiv) Polymers (CAOL) Lube Oils (HBO) Q2' Q2 '13 9

10 Second Quarter 2013 Results ORL Refining Margin vs. Regional Benchmark ($/bbl) Q Q Ural Crack Med ORL (Adjusted) Source: Reuters 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 10

11 First Half 2013 Results P&L Account ( $ millions) H1 13 H1 Difference Revenues 4,802 4,900 (98) Cost of Sales 4,678 4,878 (200) Gross Income Management and sales expenses (1) Cons. Operating Income (loss) 38 (65) 103 Financing Expenses Subsidiary Income (loss) - (3) 3 Tax Benefits 9 30 (21) Net Income (Loss) (40) (105) 65 Consolidated EBITDA

12 Second Quarter 2013 Results P&L Account ( $ millions) Q2 13 Q2 Difference Revenues 2,469 2, Cost of Sales 2,423 2,518 (95) Gross Income 46 (66) 1 Management and sales expenses Cons. Operating Income (loss) - (107) 107 Financing Expenses Subsidiary Income (loss) - (2) 2 Tax Benefits - 35 (35) Net Income (Loss) (38) (99) 61 Consolidated EBITDA 45 (73) 118

13 First Half 2013 Results P&L Account According to Sectors ( $ millions) H1 13 H1 Operating Income (loss) Reported Adjusted Reported Adjusted Refining Polymers (CAOL) (53) (53) Aromatics (Gadiv) (5) (5) Lube-Oils (HBO) (3) (3) (2) (2) Trade (2) (2) (2) (2) Adjusted Consolidated Operating Income (loss) Sectors (52) (19) Other Expenses (13) (13) (13) (13) Financing Expenses (87) Subsidiary Income (loss) - - (3) (3) Tax Benefits Net Profit (Loss) (40) (26) (105) (80) Consolidated EBITDA

14 Second Quarter 2013 Results P&L Account According to Sectors ( $ millions) Q2 13 Q2 Operating Income (loss) Reported Adjusted Reported Adjusted Refining (5) 4 (40) 31 Polymers (CAOL) (49) (49) Aromatics (Gadiv) 3 3 (17) (17) Lube-Oils (HBO) (1) (1) (1) (1) Trade (1) (1) (1) (1) Adjusted Consolidated (3) (3) 8 8 Operating Income (loss) Sectors 7 16 (100) (29) Other Expenses (7) (7) (7) (7) Financing Expenses Subsidiary Income (loss) - - (1) (1) Tax Benefits - (2) Net Profit (Loss) (38) (31) (99) (46) Consolidated EBITDA (73) (2) 14

15 Second Quarter 2013 Results Change in Adjusted Operating Profit ($ millions) (34) (4) 16 (29) Operational Loss Q2 ' Petchem Margin Refining Margins Sales Other income OPEX Operational Profit Q3' 15

16 Second Quarter 2013 Results Cash Flow ($ millions) (4) (39) (28) 204 (71) 133 (19) Cash Cash Operating Activities Change Working Capital Short-term Financing Sector Transactions Taxes Interest Loan Repayments Bond Repayments Fixed Asset Purchases Cash

17 Second Quarter 2013 Results Change in Consolidated Net Debt ($ millions) 2,599 2,298 1,972 2,154 2,138 1,964 1,956 Dec. 31, 2011 Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, 2013 Jun. 30,

18 Second Quarter 2013 Results Balance Sheet, June 30, 2013 ($ millions) Current Assets Cash & securities Other current assets Inventory 804 1,049 1,767 2,168 Non Current Assets Other NC assets Property, plant & eqpmt. 2,406 2,419 2,710 2,780 Current Liabilities Current Fin. liabilities Other current liabilities 1,565 1,656 2,354 2,622 Non Current Liabilities NC fin. liabilities 1,270 1,418 Other NC fin. liabilities ,367 1,517 Capital Shareholder s Capital ,477 4,948 4,477 4,948 18

19 Thank You 19