INVESTOR PRESENTATION 2015 AND 4Q 2015 29 April 2016
DISCLAIMER This presentation (hereinafter – the “Presentation”) of the Alliance Oil Company (hereinafter – the “AOC”) was prepared exclusively for the information purposes in order to improve the transparency of disclosure of relevant information and materials of AOC and establish a continuous dialogue with investors. The data contained in this Presentation constitute the confidential information of the AOC group of companies and shall not be disclosed or transmitted to any third parties without the prior written consent of the disclosing party. The information contained in this Presentation was prepared and provided by the AOC structural departments. These data can be changed with the course of time and are subject to regular update and amendment. This presentation is not an offer or solicitation of an offer and does not cause creation of any rights or obligations from the AOC and/or potential partners to carry out transactions or to enter into negotiations on cooperation. The information provided in this Presentation is not an offer or proposition to conclude an agreement. AOC makes no warranty in respect of the accuracy or reliability of the information contained in the Presentation and accepts no liability for any losses suffered by third parties arising from inaccuracy or unreliability of such information as well as for other negative effects. 2
12M 2015 Market Environment Crude Oil Prices and Exchange Rate Oil Products Price RUB/USD USD/bbl 120 130 70 110 110 100 60 90 90 80 50 70 70 40 60 50 50 30 30 40 30 20 10 1-Apr-14 1-Jul-14 1-Oct-14 1-Jan-15 1-Apr-15 1-Jul-15 1-Oct-15 1-Jan-16 Urals average Brent ESPO Kozmino Exchange rate Naphtha Diesel Fuel (Gasoil 500 ppm) Fuel Oil (HSFO 180) 2015 2014 Indicator % Indicator 12M 2015 12M 2014 % average average Urals, USD/bbl 50.04 97.09 -48% Naphtha, USD/bbl 52.81 94.33 -44% Brent, USD/bbl 51.80 98.99 -48% Diesel fuel, USD/bbl 64.48 112.67 -43% ESPO, USD/bbl 53.02 99.77 -47% Fuel oil, USD/bbl 43.38 83.35 -48% Exchange rate, USD/RUB 60.96 38.42 58% 12M 2015 results were negatively affected by weak ruble and low crude oil and oil products quotes 3
HIGHLIGHTS FOR 2015 AND 4Q 2015 Indicator 2015 2014 4Q 2015 4Q 2014 Comments Financial Results Decrease primarily due to RUB Revenue, MUSD 2,173 3,505 525 697 depreciation Decrease due to unfavourable 318 692 90 141 EBITDA, MUSD macroeconomic factors and maintenance works at the Khabarovsk Refinery Decrease in net loss resulting from FX (153) (209) (49) (205) Net Result, MUSD effects due to less severe RUB to USD exchange rate fluctuations Operational Results Drilling and production plans amended for 20.1 20.7 5.2 5.1 Production, mboe more sustainable oil fields development Decrease due to planned maintenance Refining volumes, mbbl 31.5 33.1 8.4 8.4 works at the Khabarovsk Refinery Decrease due to planned maintenance 30.6 32.2 8.2 8.1 Throughput, mbbl works at the Khabarovsk Refinery 4
UPSTREAM OPERATIONS Crude Oil and Gas Reserves and Production Timano-Pechora Khanty-Mansiysk and 2015 production: 5.5 mboe (27%) 1 Yamalo-Nenetsk 2 4Q 2015 production: 2015 production: 1.4 mboe (27%) 2.6 mboe 4Q 2015 production: 0.7 mboe Volga-Urals and Kazakhstan Tomsk 2015 production: 2015 production: 9.5 mboe (47%) 5.1 mboe (26%) 4Q 2015 production: 4Q 2015 production: 2.4 mboe (47%) 1.3 mboe (26%) Alliance Oil Company, consolidated 2P oil reserves: 594.2 mboe 3 2P gas reserves: 58.9 mboe 2015 production: 20.1 mboe (average daily: 55,153 boepd ) 4Q 2015 production: 5.2 mboe (average daily: 56,509 boepd ) Notes : (1) Percentage in consolidated Alliance Oil Company production. (2) Through the Group’s operations with AROG (Alliance Repsol Oil & Gas), a joint venture with Repsol, which is accounted for under the equity method. (3) As per DeGolyer & MacNaughton as of 31 December 2015. 5
UPSTREAM OPERATIONS Crude Oil and Gas Production Hydrocarbon Production, mboe Hydrocarbon Production, boepd 6 58 000 5,2 5,1 5,1 5,0 5 4,8 56 509 4 56 000 55 726 55 588 55 182 3 2 54 000 53 295 1 0 52 000 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Implemented 212 well interventions, launched 52 new wells for 2015 6
UPSTREAM OPERATIONS Crude Oil Sales Crude Oil Sales, mbbl Export CIS Domestic Intra-group Export CIS Domestic Intra-group 18.1 17.4 5 4.6 18 4.1 4 15 1,3 7,6 9,6 12 2,1 3 1,5 9 4,5 2 6 4,0 1,0 1 0,6 0,2 1,8 3 6,0 3,3 0,9 0 0 2014 2015 4Q14 4Q15 Reallocation of crude oil sales to export and domestic markets due to higher margins 7
UPSTREAM OPERATIONS Crude Oil Netbacks Crude Oil Netback Prices, USD/bbl Export Domestic Export CIS Domestic 60 60 55 51 45 49 40 40 42 36 35 28 28 28 24 25 20 22 20 19 21 16 8 0 0 2014 2015 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 Decreased netbacks in all destinations due to lower prices for crude oil Reduced export netbacks since 4Q 2014 till 3Q 2015 due to earlier prepaid shipments to offtakers at fixed exchange rate while RUB depreciated significantly since 4Q 2014 Notes: The netback prices are calculated by deducting VAT, railway and pipeline transportation costs (for Russian domestic sales) or tr ansportation, export duty, brokers’ commission and certain other costs (for export sales) or transportation, brokers’ commission and certain other costs (for CIS countries sales) from the gross price. 8
UPSTREAM OPERATIONS Gas Sales and Price Gas and Gas Liquids Sales, kboe Gas and Gas Liquids Prices, USD/boe Gas net price, USD/boe Gas Liquids, net price, USD/boe 3 000 2 586 44,2 2 323 2 500 40 2 000 30 1 500 28,1 1 000 20 472 395 500 11,5 10 0 7,5 2014 2015 0 Sold volume of gas, kboe Sold volume of gas liqids, kboe 12M 2014 12M 2015 700 641 626 Gas net price, USD/boe Gas Liquids, net price, USD/boe 600 60 500 49,0 50 400 37,6 40 300 200 27,6 28,5 30 29,3 110 114 27,3 100 20 0 10 11,8 4Q 2014 4Q 2015 7,2 9,2 7,5 8,4 7,1 0 Sold volume of gas, kboe Sold volume of gas liqids, kboe 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Decreased sales volumes due to revised field development scheme Gas and gas liquids economics negatively affected by increase in RUB/USD exchange rate 9 Notes: The net prices are calculated by deducting VAT (for Russian domestic sales).
UPSTREAM OPERATIONS Crude Oil and Gas Sales Revenue from Sales of Crude Oil, Gas and Gas Liquids, MUSD Export CIS Domestic Intra-group Export CIS Domestic Intra-group 854 140 131 800 127 120 39 416 600 559 100 60 80 243 42 400 60 247 49 163 40 200 30 50 20 6 160 152 12 0 0 2014 2015 4Q14 4Q15 Despite higher volumes, two main factors contributed to the decrease in revenue from sales of crude oil 2015 vs 2014: - decreased netbacks in all destinations due to lower prices for crude oil; - reduced export revenues due to fixed exchange rates applied to prepaid shipments (RUB depreciated significantly since 2014). Decrease in overall prices Q415 vs Q414 was offset by increase in volumes; increase in revenue due to termination of fixed exchange rate export contract in September 2015. 10
DOWNSTREAM OPERATIONS Assets and Refining volumes Kamchatka region Retail gas stations: 18 Marine terminals: 1 Jet fuel depot: 2 TOTAL Retail gas stations: 279 Far East: Amur, Primor Oil depots: 20 and Khabarovsk regions Marine terminals: 4 Retail gas stations: 248 Jet fuel depot: 2 Oil depots: 20 Railway tankers: 1,439 Marine terminals: 3 Railway tankers: 1,439 Khabarovsk Oil Refinery The Republic of Buryatia Refining volumes: Retail gas stations: 2015: 86,304 bopd (2014: 90,770 bopd ) 13 4Q 15: 91,493 bopd (4Q 14: 90,766 bopd ) Throughput: 2015: 30.6 mbbl (2014: 32.2 mbbl ) 4Q 15: 8.2 mbbl (4Q 14: 8.1 mbbl ) 11
DOWNSTREAM OPERATIONS Khabarovsk Oil Refinery Khabarovsk Oil Refinery connection to ESPO On 1 September 2015 the Group commenced commercial delivery of crude oil through the newly Refining volumes, bopd launched connection to ESPO. Net positive effect is RUB 1 bln per month for September-December 2015. 2015 86 304 2014 90 770 4Q 2015 91 493 4Q 2014 90 766 Refining throughput, mbbl 2015 30,6 2014 32,2 ESPO-II (length 2,046 km) Pumping station No34 (pipeline tie-in point) 4Q 2015 8,2 ESPO-I (length 2,694 km) ESPO leg (length 28 km) 4Q 2014 8,1 Oil Products Breakdown in 2015, % Light oil products yield,% 7% Fuel oil 2015 63,0% 20% Marine fuel 36% 2014 60,7% Gasoline 4Q 2015 59,8% 21% Diesel fuel 17% 4Q 2014 63,4% Others 12
DOWNSTREAM OPERATIONS Oil Products Sales Oil Products Sales, mbbl Export Bunkering Wholesale Retail Export Bunkering Wholesale Retail 33.6 32.9 35 8.6 8.7 9 5,8 5,6 30 1,5 1,7 25 6 11,4 11,2 2,9 20 3,0 15 8,3 2,2 3 11,2 10 2,6 5 7,8 2,1 5,2 1,3 0 0 2014 2015 4Q14 4Q15 Reallocation of shipments from bunkering to export due to higher margins Decrease in overall volumes 2015 vs 2014 due to planned maintenance works at the Khabarovsk Refinery in Q3 2015 13
Recommend
More recommend
