Petroplus. UBS European Mid-Cap Oil Conference London March 26, 2009

Transcription

1 Petroplus UBS European Mid-Cap Oil Conference London March 26, 29

2 Disclaimer While all reasonable care has been taken to ensure that the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this presentation is selective in nature and is intended to provide an introduction to, and overview of, the business of the Company. Any opinions expressed in this document are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained herein. This presentation may contain forward-looking statements, which include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that the Company s actual financial condition, results of operations and cash flows, and the development of the industry in which the Company operates, may differ materially from those made in or suggested by forward-looking statements contained in this presentation. No obligation is assumed to update any forward-looking statements. This presentation does not constitute an offer of securities in any jurisdiction. Securities cannot be offered or sold in the United States absent registration or an exemption from registration. 2

3 Company Overview (1) Petroplus at a Glance Ticker Market Capitalization Number of Shares Free Float Head Office Location Employees Refinery Throughput Capacity PBF: Investment-In ownership (2) PPHN VX CHF 1,186 MM 69.6 MM 1% Zug, Switzerland 2, , bpd 33% (1) As of March 19, 29 (2) The Company entered into a partnership with the Blackstone Group and First Reserve to pursue acquisitions in North America. 3

4 Petroplus Growth Petroplus Refinery Acquisitions Net Debt to Net Capitalization 1 mbpd Petroplus 185, +59% 295, BRC 11, +55% +37% 45, Ingolstadt 11, +38% 625, Coryton 172,+ 7, 864, Pt. Couronne & Reichstett 239, % 46% June 26 Dec 28 Acquisition Criteria: Meaningfully accretive to earnings Cash flow positive from day 1 Maintain healthy balance sheet Improved trade credit Position for future acquisitions 4

5 2,5 2, 1,5 1, 5 5 Neste Bayernoil OMV Saras GALP StatoilHydro Mineralolref Oberrhein Preem Hellenic Ineos CEPSA ERG Eni ConocoPhillips Repsol BP Petroplus Nelson Complexity (2) Shell ExxonMobil Total Europe s Largest Independent Refiner (1) (1) Western European refining companies (EU15) with installed capacity greater than 25 mbpd Sources: Oil and Gas Journal, Hart Energy mbpd

6 Petroplus: Pure Play Multi-Site Refiner North Sea Refining System Inland Refining System Coryton Capacity: 172, bpd Other Input: 7, bpd Complexity: 12. Commissioned: 1953 Acquired: 27 Petit Couronne Capacity: 154, bpd Complexity: 7.3 Commissioned: 1929 Acquired: 28 Ingolstadt BRC Capacity: 11, bpd Complexity: 4.5 Commissioned: 1968 Acquired: 26 Teesside Capacity: 117, bpd Acquired: 2 Antwerp Processing Plant Acquired: 1997 Average complexity Capacity: 11, bpd Complexity: 7.3 Commissioned: 1963 Acquired: 27 Reichstett Capacity: 85, bpd Complexity: 5.3 Commissioned: 1963 Acquired: 28 Cressier Capacity: 68, bpd Complexity: 6.4 Commissioned: 1968 Acquired: 2 Sources: Petroplus, Wood Mackenzie Including Teesside 7.2 Excluding Teesside 8. Europe 6. 6

7 Millions of Barrels Petroplus Product Slate (4) 14 47% % 6 4 $ (1.) (2.) Net NWE 4:1:2:1 (1) in 28 & 29 Average 4 to date: $ : $ : $ 2.98 Jan FebMarAprMayJun Jul AugSep OctNovDec Jan FebMar 11% (3) 2 4% 6% 4% 1% (2) 5% LPG Gasoline Naphtha Middle Distillates Low Sulfur Straight Run (1) Consists of: four Dated Brent/ one gasoline/two middle distillate/one heavy fuel oil net of fuel consumed in-production of 5%. 4 to-date and 9 contains monthly data through 3/13/29. (2) Lubes represents 2% of the petrochemicals (3) Bitumen represents 22.5% of the fuel oil Sources: Bloomberg, Petroplus Petrochemicals Fuel Oil Fuel Consumed 7

8 Supplying Local Markets To Meet Demand (1) Teesside, U.K. Highlights Middle distillates predominately sold into inland niche market providing product premiums. Coryton, U.K. Highlights Products primarily distributed in southern U.K., to meet local demand (26) (2) Belgium BRC, Belgium Highlights Located in ARA region, major European hub Processes predominantly medium sour crude oil. Ingolstadt, Germany Petit Couronne, France Highlights Products primarily distributed in the regional market surrounding Paris. (4) (44) United Kingdom (9) (35) Germany Highlights Products primarily distributed in the local Bavarian market with inland product premiums. Reichstett, France Highlights Products primarily distributed in the local area with inland product premiums. (61) France (8) Cressier, Switzerland Highlights 1% of the gasoline and mid dist are sold in Switzerland. Product premiums based upon Rhine freight (1) Representing net country trade balances in 28. Sources: Petroplus, Wood Mackenzie (3) Switzerland Gasoline Middle Distillates Fuel Oil 8

9 Expected Demand by Region mpbd CAGR, % 35 4.% 3 3.5% Drivers of Demand Worldwide GDP growth Population growth Vehicle affordability % 2.5% 2.% 1.5% %.5%.% Asia Pacific Middle East North America Latin America Greater Europe FSU Sub-Saharan Africa -.5% Grow th Rate Source: Wood Mackenzie 9

10 GDP & Oil Demand Growth Correlation between GDP & Oil Demand Growth 4.25% GDP Growth Oil Demand Growth 3.75% 3.25% 2.75% 2.25% 1.75% Recovery after the recession in the early 199 s Emerging markets driving strong world growth Global Economic Crisis 1.25%.75%.25% Asian financial crisis Technology bubble bursts -.25% -.75% Sources: Euromonitor, BP, Wood Mackenzie 1

11 Impact on Costs from Changing Environment CAPITAL Reduction (2) FOREX Impact Major Variable Expenses (UK) rebased January Opex (3) Capex Capex EUR/USD GBP/USD CHF/USD Previous rates QTD 29 rates Jan-7 Apr-7 Jul-7 Oct-7 Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Dated Brent NBP (UK) Electricity UK (Base Price) (1) Refining & marketing operating expenses include refining personnel, operating and other administrative expenses that pertain to the processing of crude oil and feed-/blendstocks into refined products for the seven refineries. (2) Reduced by $55 million (3) Opex does not include impact of changing variable cost structure as shown in the graph on the right hand side. Sources: Pira, Petroplus 11

12 Additional Capacity Impacted by Changing Environment 7, mbpd Africa Asia Pacific FSU Europe Latin America Middle East North America mbpd 2,5 6, 2, 1,5 5, 1, 5 2,95 4, , 1, , 1, Source: Pira Jan 29 [call-out = Average (Firm, Firm + Probable)] Firm Firm + Probable Firm + Probable + Less likely 12

13 Continued Delays in Capacity Additions Cost inflation, regulatory hurdles, economics and financing are resulting in delays 3,5 mbpd Cancelled and Delayed Projects 29 Status Capacity (Mbpd) 3, Essar Oils Refinery Expansion, India Completion pushed back to ,5 Jubail Refinery, Saudi Arabia Aiming to reduce project costs $1.2 billion 4 2, Ceyhan Refinery, Turkey Project pushed back 2 1,5 Cilacap Refinery Expansion, Indonesia Project pushed back due to the economic crisis 6 1, Balikpapan Refinery Expansion, Indonesia Project pushed back due to the economic crisis 2 5 Fujairah Refinery, U.A.E. Al-Zour Refinery, Kuwait Project pushed back due to the economic crisis Project cancelled due to the economic crisis Outlook 12 months ago 24 months ago Port Arthur Refinery Expansion, USA Project pushed back due to the economic crisis 3 Sources: Wood Mackenzie, Hart Energy Representing the capacity gap resulting from delays and cancellations in the Middle East. 13

14 Utilization Utilization Rate (%) 1% 95% 9% 85% 8% 75% 7% 65% 6% 55% 5% Jan-9 Average Utilization Rate Europe Average Utilization Rate US Utilization rates have most likely peaked as safety, reliability and environmental requirements require more attention Sources: BP, IEA, EIA 14

15 Evolution of Product Specifications ppm Diesel & Gasoline ppm Bunker fuel 1 5, 45, 8 4, 35, 3, 5 5 2, 3 15, 15* , 1, Diesel & Gasoline EU Gasoline US Diesel US 1, Worldwide ECA California Refining cleaner fuels results in additional hydrogen costs for desulphurization, further investment, costs to ensure product quality in-transit and increased turnaround activity. Sources: Hart Energy, Wood Mackenzie, Petroplus * 8% of the on-road diesel in the U.S. was capped at 15 ppm in

16 Freight cost of moving mid distillates Antwerp to New York Ras Tanura to Yokohama Jamnagar to Antwerp year average (24-28) USD / bbl Source: Pira 16

17 Alternative fuels - globally Refinery vs non-refinery supply of gasoline & diesel and gasoil mbpd 3, 25, 2, 15, 1, 5, 2% 8% 9% 3% % % 2% 2% Non-refinery Gasoline Refinery Gasoline Non-refinery Diesel/Gasoil Refinery Diesel/Gasoil Source: Wood Mackenzie The displayed % is representing non-refinery supply s part of total supply. 17

18 Tightness in Global Refining Capacity Global Supply, Demand and Capacity mbpd Capacity Surplus 3% 1, Capacity Surplus 23% Capacity Surplus 9% 9, 8, 7, 6, 5, 4, 3, Global Product Supply Global Refining Capacity Global Product Demand Source: BP 18

19 Refining Industry Factors Regional capacity/regional demand (& population) Refining capacity additions Delays in discretionary capital programs (economics) Utilization GDP & Oil Demand growth Individual refined product demand Local product demand Alternative fuels/biofuels Fuel Specifications Logistics/Economics of importing/exporting Car fleet 19

20 Key Values Enhanced Stakeholder Value Leading Pure Play Multi-Site European Refiner Appropriate Capital Structure Focus on Safety and Operational Excellence Disciplined Acquisition Strategy Strong Track Record of Management Team 2

21 Everything Depends on Safety & Environmental Compliance 21