BAZAN Group Oil Refineries Ltd. First Quarter 2014 Results. May 2014

Transcription

1 BAZAN Group Oil Refineries Ltd. First Quarter 2014 Results May

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 Operating Results Highlights Net profit in spite of challengeable business environment Refining margin of about $4.6 per barrel higher than the benchmark average The Cash Flow from operations was $488 million Efficiency plan on track 3

4 Brent, $/Bbl Operating Environment Crude Oil Prices Crude oil prices between $ per barrel /12 03/13 06/13 09/13 12/13 03/14 Ural - Brent, $/Bbl /12 03/13 06/13 09/13 12/13 03/14 Source: REUTERS Ural weakened vs Brent Heavy crude oil continues to reach out to the Mediterranean Sea Relative strengthening of all types of light crude oil along with the strengthening of gasoline 4

5 Operating Environment Mediterranean Ural Cracking Margin Ural Med Margin, $/Bbl /12 03/13 06/13 09/13 12/13 03/14 Mediterranean margin indexes Tight crude oil market is not matched by oil product demand US product exports also competing for demand European capacity reduction may help, but slowly Product Margins vs Brent, $/Bbl Product components Diesel holding up better than other products, but crude strength is not led or matched by diesel Gasoline showing usual seasonality Fuel oil recovering ground Fuel Oil Diesel Gasoline /12 03/13 06/13 09/13 12/13 03/14 Source: REUTERS 5

6 1, Operating Environment Petrochemical Products Polymer Prices Above Naphtha, $/Ton Polyethylene Polypropylene Polymer Margins Remained stable with slight upward trend Higher margins than last year /12 03/13 06/13 09/13 12/13 03/14 Aromatics Prices above Gasoline, $/Ton Paraxylene Xylene /12 03/13 06/13 09/13 12/13 03/14 Source: ICIS,PLATTS Aromatics Margins Decline in demand from Asian countries with weak value chain of the polyester 6

7 Operating Environment Assessment of National Transportation Fuel Demand Local Consumption Transportation Fuel, KTon 1,523 1,606 +5% Source : National Infrastructure Ministry 734 Q1' 13 Q1' 14 Gasoline Jet Kerosne Diesel Local Consumption: Transport Fuel While European transport fuel consumption generally declined, Israel remained stable with upward trend Transition to natural gas caused a significant decline (12%) in heating fuel consumption Crude Oil Refining & Petrochemicals Output, KTon 2,227 2,227 Q1' 13 Q1' Crude oil refining & petrochemical products production Stable level of refining including HVGO use Decrease in aromatics products output as a result of production outages and failures Refining Polymers Aromatics Lubes&Waxes 7

8 First Quarter 2014 Results ORL Refining Margin vs. Regional Benchmark ($/bbl) Q1 13 Q1 14 URAL (Reuters) ORL Margin 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 8

9 First Quarter 2014 Results P&L Account ( $ millions) 1-3/ /2013 Difference Revenues 2,248 2,333 (85) Cost of Sales 2,164 2,255 (91) Gross Income Management and sales expenses (40) (40) - Early Retirement costs (2) - (2) Operating Income Finacing Expenses (33) (49) 16 Taxes (4) 8 (12) Net Profit (Loss) 4 (3) 7 EBITDA

10 First Quarter 2014 Results P&L Account According to Sectors ( $ millions) Operating Income (loss) Refining Polymers (CAOL) Aromatics (Gadiv) Lube-Oils (HBO) Trade Adjusted Consolidated Operating Income, Sectors Write-Offs, Goodwill and Retirement Financing Expenses Tax Benefits Net Profit (Loss) Consolidated EBITDA 1-3/2014 Reported Adjusted (8) (8) (33) (33) (4) - 4 (6) /2013 Reported Adjusted (2) (2) (1) (1) (6) (6) (49) (49) 8 6 (3)

11 First Quarter 2014 Results Change in Adjusted Operating Income ($ millions) (27) 10 ( 2) 2 3 (4) Operating Income Q1 13 Refining Polymers Aromatics Lubes&Waxes Trade Consolidation Operating Income Q

12 First Quarter 2014 Results Cash Flow ($ millions) (38) (22) (271) 410 (30) (20) Cash Cash Operating Activities Working Capital Bonds Issue Swaps Retirement Loan Redemption Bond Redemption Loans Redemption Short Term Credit Interest Fixed Asset Purcha ses Cash

13 First Quarter 2014 Results Balance Sheet ($ millions) Current Assets Cash Account Receivable Inventory ,794 1,904 Non Current Assets Other NC assets Property, plant & eqpmt. 2,321 2,350 2,602 2,624 Current Liabilities Financial Obligations Suppliers & Creditors 1,574 1,483 2,155 2,309 Non Current Liabilities NC fin. liabilities 1,344 1,347 Other NC fin. liabilities ,447 1,435 Capital 4,396 4,528 Shareholder s Capital ,396 4,528 13

14 Thank You 14