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WEBCAST – CONFERENCE CALL Third Quarter 2017 Results November 3rd, 2017
Repsol Investor Relations www.repsol.com
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Disclaimer
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ALL RIGHTS ARE RESERVED
© REPSOL, S.A. 2017
Repsol, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any form or by any means without the prior written permission of Repsol, S.A.
This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Royal Legislative Decree 4/2015 of the 23rd of October approving the recast text of the Spanish Securities Market Law and its implementing regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.
This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol’s financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words “expects”, “anticipates”, “forecasts”, “believes”, estimates”, “notices” and similar expressions. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol’s control or may be difficult to predict. Within those risks are those factors and circumstances described in the filings made by Repsol and its affiliates with the Comisión Nacional del Mercado de Valores in Spain and with any other supervisory authority of those markets where the securities issued by Repsol and/or its affiliates are listed.
Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.
This document mentions resources which do not constitute proved reserves and will be recognized as such when they comply with the formal conditions required by the system “SPE/WPC/AAPG/SPEE Petroleum Resources Management System” (SPE-PRMS) (SPE – Society of Petroleum Engineers).
This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Royal Legislative Decree 4/2015 of the 23rd of October approving the recast text of the Spanish Securities Market Law and its implementing regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction. The information contained in the document has not been verified or revised by the External Auditors of Repsol..
Third quarter 2017 Results
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1. Key messages from third quarter of 2017
2. Operational results
3. Financial results
4. Guidance for full year 2017
5. Conclusions
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Key messages from third quarter of 2017 .
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Free Cash Flow before dividends and interests: ~€700M
Brent $52 in 3Q: More than breakeven at current commodity prices
Credit Rating: Continuing to target BBB stable
Net Debt: Reduced to ~€7Bn
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45.9 49.3
53.7
49.6
52.1
20
30
40
50
60
3Q16 4Q16 1Q17 2Q17 3Q17
Brent - $/bbl
2.8 3.0
3.3 3.2
3.0
1,0
1,5
2,0
2,5
3,0
3,5
3Q16 4Q16 1Q17 2Q17 3Q17
Henry Hub - $/Mbtu Exchange Rate - $/€
1.12
1.08 1.06
1.10
1.17
1,00
1,05
1,10
1,15
1,20
3Q16 4Q16 1Q17 2Q17 3Q17
2017B*: 1.05
2017B*: 55
5
Market environment
2017B*: 3.2
*Budget for 2017
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Operational Activity Upstream
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Higher prodution in Libya: 3Q 17 25 kboe/d(1)
Ytd 23 Kboe/d(1)
Flyndre and MonArb (UK) 7 kboe/d(1) in 3Q
First gas at Juniper (T&T) in August 5 kboe/d(1) in 3Q, ramping-up
Kinabalu (Malaysia) and Sagari (Peru) First production in Q4
Reggane (Algeria) Start production around year end
Development activity:
Red Emperor (Vietnam) Buckskin (Gulf of Mexico)
Exploration program:
3 wells completed in 3Q17 (1 positive)
677 kboe/d
2Q 2017
693 kboe/d
3Q 2017
+ 2%
688 kboe/d
9M 2017 (Avg)
(1) Net to Repsol
2019
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Operational activity
Utilization rates
Refining Margin Indicator
5.1
7.2 7.1 6.2
7.0
0
5
10
3Q16 4Q16 1Q17 2Q17 3Q17$/bbl
Downstream
Petrochemicals
• Higher sales
• Robust demand
• Naphtha, prices higher
99%
Distillation
3Q 2017
104%
Conversion units
Commercial businesses
Marketing
• Higher volumes due to seasonality and increasing demand in Spain
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Quarterly Results
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CCS Adjusted Net Income Q3 2016 % Variation
+ 88% 307
Net Income 481 + 10%
Q3 2017
576
527
EBITDA CCS Million €
1,148 + 38% 1,587
CCS Adjusted Net Income Q3 2016 % Variation
- -28
Q3 2017
148 UPSTREAM
CCS Adjusted Net Income Q3 2016
+ 27% 395
Q3 2017
502 DOWNSTREAM
Million €
Million €
CCS Adjusted Net Income Q3 2016
- 23% -60
Q3 2017
-74 CORPORATION
Million €
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Guidance for full year 2017
2017 Guidance
2.1 • Accelerated delivery of 2018 target
• Decrease of break-even of Upstream: <$60
~3.0 • Without impacting production volumes
685-690 • Subject to fluctuations in Libya
• Avg. Refining Margin Indicator:
6.80 $/bbl (average YTD to September) 2.0+
Efficiency & Synergies (€Bn)
Group Capex (€Bn)
Production (kboe/d)
Downstream FCF (€Bn)
2017 Budget
2.1
3.6
680
1.8-2.0
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Conclusions
UPSTREAM
• Currently producing 700 kboe/d
• Capital investment optimised, plateau maintained
DOWNSTREAM
• Planned refinery maintenance completed in 1H17
• Return to normal high levels of conversion and utilization
CORPORATION
• Strength of integrated business model
• Robust under current economic conditions
Third Quarter 2017 Results
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Q&A Session
Repsol Investor Relations investorsrelations@repsol.com
© Repsol Investor Relations www.repsol.com
WEBCAST – CONFERENCE CALL Third Quarter 2017 Results November 3rd, 2017
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