Presentaci.n WEBCAST 4Q 2004 Definitiva · 2012. 4. 18. · Former Blocks Package 1 NC-200. 14...
Transcript of Presentaci.n WEBCAST 4Q 2004 Definitiva · 2012. 4. 18. · Former Blocks Package 1 NC-200. 14...
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4th QUARTER & FULL YEAR 2004 PRELIMINARY RESULTS
WEBCAST-CONFERENCE CALL14.00 H CET
February, 22nd 2005
1
Disclaimer
Safe harbor statement under the Private Securities Litigation Reform Act of 1995:
This document contains statements that Repsol YPF believes constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements regarding the intent, belief or current expectations of Repsol YPF and its management, including with respect to trends affecting Repsol YPF’s financial condition, results of operations, business, strategy, production volume and reserves, as well as Repsol YPF’s plans with respect to capital expenditures and investments. These statements are not guarantees of future performance and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol YPF’s control or may be difficult to predict.
Repsol YPF’s future financial condition, results of operations, business, strategy, production volumes, reserves, capital expenditures and investments could differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, currency fluctuations, the price of petroleum products, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, environmental and regulatory considerations and general economic and business conditions, as well as those factors described in the filings made by Repsol YPF and its affiliates with the Comisión Nacional del Mercado de Valores in Spain, the Comisión Nacionalde Valores in Argentina and the Securities and Exchange Commission in the United States; in particular, those described in Section 1.3 “Key Information about Repsol YPF―Risk Factors” and Section 3 “Operating and Financial Review and Prospects” in Repsol YPF’s annual report on Form 20-F for the fiscal year ended December 31, 2003 filed with the Securities and Exchange Commission.
Repsol YPF does not undertake to publicly update or revise these forward looking statements even if experience or future changes make it clear that the projected results or condition expressed or implied therein will not be realized.
2
HIGHLIGHTS
Antonio BrufauChairman & CEOAntonio Brufau
Chairman & CEO
3
New Organization
Highlights
• Company oriented to results and target fulfilment
• Decision making process decentralized
• Increasing managers’ direct responsibility for earnings
• Enhancing empowerment to foster cost cutting
• Reducing the size of the corporation
4
New Organization
Highlights
Rafael Piqueras
Corporate D. OfLegal Affairs
Luis Mañas
Corporate D. OfFinance
Cristina Sanz
Corporate D. OfResources
5
Repsol YPF
Highlights
• Well balanced between Upstream and Downstream
• Good reserves to production ratio, particularly in gas
• Ample possibilities for growth
• Unique relationship with Gas Natural sdg
• Leadership in Latin America
• Very cost efficient operator
• Low organic replacement ratio in 2003 and 2004
• Limited E&P diversification
6
Strategy Update
Highlights
• Selective growth strategy
• Geographical diversification
• Larger investment in new upstream projects
• Capital discipline and cost contention
• Committed to continuing as a low-cost operator
Strategy Day in May 2005
7
Million Euro
Net IncomeNet Net IncomeIncome
2004 Results
2,020 1,950
1,000
2,000
2003 2004
2,676 2,864
0
1,500
3,000
2003 2004
-3.5%
Adjusted Net IncomeAdjustedAdjusted Net Net IncomeIncome
+7.0%
Highlights
8
Hydrocarbon Production
Liquids Gas
0
600
1,200
2003 2004
Reported Reported Reported
(KBOE/D)
1,133 1,166+ 2.9%
Exploration & Production
• € 2.6 Billion Operating Income
• 2.9% Total Production Growth
700750800850900950
1,0001,0501,1001,1501,200
2002 2003 2004
REPORTED PRODUCTION 2002-2004REPORTED PRODUCTION 2002-2004
Kboepd
C.A.G.R. 7.9 %
9
(MBOE)Proved ReservesProved ReservesProved Reserves
Reserves at December 31st
Conversion Factor Gas 1 Boe = 5.615scf
Exploration & Production
1,882
3,551
1,683
3,243
(427)
(223)3
139
2003 Incorporations Revisiones Acquisitions/Divestments Production 2004Additions Acq/Div Production 2004Revisions 2003
4,9265,433
Liquids Gas
100% Externally Certified
10
Exploration Activity
3D Seismic Km23D Seismic Km2
2D Seismic Km2D Seismic Km
22,321 17,017
87,786
2002 2003 2004
Exploration & Production
13,428
30,661
44,315
2002 2003 2004
• Total acreage up 77% since 2002
to 487,000 Km2
• 2005 Exploration Capex: 450 M$
11
New Projects
Exploration & Production
Algeria
ALGIERS
H. R’Mel
H.Messaoud
Reggane
ALGIERS
M’Sari Akabli
TFT
TIFERNINE
Gassi Touil –Rhourde Nouss
Hamra
Rhourde Es Seguir(401 d)
Gassi Chergui OuestREPSOL/Gas Natural
ARZEW
12
New ProjectsIran
Exploration & Production
13
New ProjectsLibya
Exploration & Production
SIR TE
KU F R A
M U R ZU Q
G H A D AM ES
PE LA G IAN SH E LF
C YR E N A IC A
G U LF O F S IR TE
O 10
S36
K3
K1
M 1
NC 1 87
NC 186
NC 115
NC 190O 9
Former Blocks
Package 1
NC-200
14
Downstream results
1,196
1,629
0
900
1,800
2003 2004
Operating Income Operating Income Operating Income
+ 36.2%
• Record refining margins
• Average mid-cycle petrochemicals
margins
• Lower LPG and marketing margins in
Europe
• Negative marketing margins in Argentina
Million Euro
Downstream
15
Repsol YPF’s Historic Refining Margins
0
1
2
3
4
5
6
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Downstream
$/Bbl
Average 1995-2003
16
Downstream acquisitions in Portugal
Downstream
• 303 Service Stations
• Borealis Petrochemical Plan
• LPG assets from Shell
17
Argentina, Bolivia and Brazil (ABB)
Argentina, Bolivia and Brazil
• Structural change in natural gas market over last years
• Natural gas price increases in Argentina, scheduled for May and July
2005
• Increase in Bolivian natural gas export prices to Argentina, up to more
than $2.14/mscf at the border
• Argentina nears agreement with debtors and IMF
• Bolivian Hydrocarbon Law still pending
18
2004 Highlights
• Production growth 2002-2004 above 5% targeted for 2002-2007
• Record downstream operating results
• Record EBITDA in Chemicals, in a mid-cycle year
• Strong cash flow generation
• 25% dividend increase
Highlights
19
Major Developments for the future
• Normalization of Argentina
• Oil price stable above 40$/bbl
• Downstream margins above historical levels
• Strong gas demand in the Southern Cone
• Two major LNG projects in the Mediterranean and Far East
Highlights
20
RESULTS
Luis MañasCorporate Director of Finance
Luis MañasCorporate Director of Finance
21
Adjusted Net Income
786
754
675 649 616
0
400
800
4Q 03 1Q 04 2Q 04 3Q 04 4Q 04
Million euro Results
22
Operating Income
1,227
1,200 1,119
1,001 852
0
750
1,500
4Q 03 1Q 04 2Q 04 3Q 04 4Q 04
Million euro Results
23
Year on Year Comparison
Results
REPORTEDREPORTEDREPORTED
Operating Income 29.5% 29.5%17.8%
Adj. Net Income 17.6% 26.2%7.0%
Net Cash Flow 31.8% 37.3%19.9%
Adj. by€/$
Exchange Rate
Adj. byAdj. by€/$€/$
Exchange Exchange RateRate
Adj. byTax RateAdj. byAdj. by
TaxTax RateRate++
Net Income 6.1% 16.6%-3.5%
24
Quarter on Quarter Comparison
Results
REPORTEDREPORTEDREPORTED
Operating Income 54.8% 54.8%44.0%
Adj. Net Income 37.3% 41.2%27.4%
Net Cash Flow 79.3% 82.7%68.2%
Adj. by€/$
Exchange Rate
Adj. byAdj. by€/$€/$
Exchange Exchange RateRate
Adj. byTax RateAdj. byAdj. by
TaxTax RateRate++
Net Income -30.5% -27.3%-38.3%
25Results
Full Year Results
601
3,860
-409-142
1,024
4,547
-285-102
0
3,000
6,000
2003 Oil gas Prices Down. Margins Volume $/€ Exploration Exp. Others 2004
Operating IncomeOperating IncomeOperating IncomeMillion euro
26
Operating income by business areas
2,3522,638
0
1,500
3,000
2003 2004
+12.2%
E&PE&PE&P
Million euro
1,196
1,629
0
900
1,800
2003 2004
+36.2%
R&MR&MR&M
212274
0
150
300
2003 2004
+29.2%
G&PG&PG&P
155
253
0
150
300
2003 2004
+63.2%
ChemicalsChemicalsChemicals
Exploration & Production
27
$/bbl
WTIWTIWTI
Price Realizations
31.141.5
0
25
50
2003 2004
25.530.9
0
25
50
2003 2004
+10.4$
Repsol YPF Repsol YPF Repsol YPF
+5.4$
Exploration & Production
• Wider differentials for heavy crudes
• Higher discounts on internal sales in Argentina
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Evolution of Gas Price realisation
1.27
0.84
1.42
0.70
0.00
0.75
1.50
4Q 01 4Q 02 4Q 03 4Q 04
US$/mscf
Exploration & Production
29
Operating Costs
Lifting Cost (US$/boe)Lifting Cost (US$/boe)
2001 2002 2003 2004
2.57
1.93
- 24.9%
Exploration & Production
30
Operating income by business areas
2,3522,638
0
1,500
3,000
2003 2004
+12.2%
E&PE&PE&P
Million euro
1,196
1,629
0
900
1,800
2003 2004
+36.2%
R&MR&MR&M
212274
0
150
300
2003 2004
+29.2%
G&PG&PG&P
155
253
0
150
300
2003 2004
+63.2%
ChemicalsChemicalsChemicals
Refining and Marketing
31
Refining Margins
7.92
5.92
3.54
5.45
3.082.722.72
4.24
0
4
8
1Q 03 2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04
Refining and Marketing
$/Bbl
32
Volume Growth
3,193 3,217
2003 2004
Sales of LPGSales of LPGSales of LPGSales of Oil Products
Sales of Sales of Oil ProductsOil Products
+0.8%53,577 54,968
2003 2004
+2.6%
Thousand Tons
Refining and Marketing
33
Operating income by business areas
2,3522,638
0
1,500
3,000
2003 2004
+12.2%
E&PE&PE&P
Million euro
1,196
1,629
0
900
1,800
2003 2004
+36.2%
R&MR&MR&M
212274
0
150
300
2003 2004
+29.2%
G&PG&PG&P
155
253
0
150
300
2003 2004
+63.2%
ChemicalsChemicalsChemicals
Chemicals
34
Chemicals operating income and Cash Flow
Million euroChemicals
Operating Cash-Flow
Operating Income
0
100
200
300
400
500
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
35
Volume Growth
4,038 4,151
2003 2004
Petrochemical SalesPetrochemical SalesPetrochemical Sales
+2.8%
Thousand Tons
Chemicals
36
Operating income by business areas
2,3522,638
0
1,500
3,000
2003 2004
+12.2%
E&PE&PE&P
Million euro
1,196
1,629
0
900
1,800
2003 2004
+36.2%
R&MR&MR&M
212274
0
150
300
2003 2004
+29.2%
G&PG&PG&P
155
253
0
150
300
2003 2004
+63.2%
ChemicalsChemicalsChemicals
Gas & Power
37
Extraordinary Items
Results
Total extraordinary items in the quarter were -667 M€:
• -411 M€: Provisions for fiscal contingencies in Spain
and Latin America
• -229 M€: Asset and Contract depreciation
• -220 M€: Other provisions for legal claims in Argentina,
labour restructuring and pensions, etc
• +193M€: Revision of ceiling test provisions, asset sales
38Financial Evolution
Net Debt Variation of 2004
(*) Excluding financial investments or divestments that don’t affect net debt.
Million Euro
5,047 4,920
404691
8631,881
604
0
2,750
5,500
Working Capital & oher
EXCHANGE RATE
DIFFERENCES
December, 31 2004NET CASH FLOW
– NET INVESTMENTS
WORKING CAPITAL &
OTHER
DIVIDENDSDecember, 31
2003
YPF 2003 tax payment
39
Million Euro
Net Interest ExpensesNet Interest ExpensesNet Interest Expenses
Financial Expense
447351
0
250
500
2003 2004
105
63
0
60
120
4Q 03 4Q 04
- 21.5%
Financial ResultFinancial Financial ResultResult
- 40.0%
Financial Evolution
40Million euro Financial Evolution
Financial Ratios
21.9
5,04723,072
6,1560.82
4,477
88.7
13.8
447
31 Dec2003
20.7
4,92023,777
7,0580.70
5,367
109.1
20.4
351
31 Dec2004
22.1
5,59825,346
5,1440.82
3,794
90.4
20.0
257
30 Sep 2004
NET DEBT
NET DEBT / BOOK CAPITALIZATION (%)
BOOK CAPITALIZATION
EBITDANET DEBT / EBITDA (X)
NET CASH-FLOW
NET CASH-FLOW / NET DEBT (%)
EBITDA / NET INTEREST (X)
NET INTEREST EXPENSES
41
IFRSs: A New Accounting Metric
• Fully detailed presentation on March 31st 2005
• Important effects for Repsol YPF, primarily due to treatment of:
Deferred taxes (IAS 12)
Goodwill amortization (IFRS 3)
Provisions for asset depreciation (IAS 36)
Valuation of financial instruments (IAS 39)
• OUTCOME:
Reduction of shareholders equity and capital employed
Increase in net income
Increase in return metrics (ROCE, ROE, …)
International Financial Reporting Standards
SpainPº Castellana 278-28028046 Madrid (Spain)
Tlf: 34 913 48 55 48Fax: 34 913 48 87 77
44thth QUARTER & FULL YEAR QUARTER & FULL YEAR 20020044 RESULTSRESULTS
USA 410 Park Avenue, Suite 440New York 10022Tlf: +1 212 588 1087Fax: +1 212 355 0910
E-mail: [email protected]
Website: www.repsolypf.com
Investor Relations