Professional Documents
Culture Documents
(US GAAP)
Forward-Looking Statements
Certain statements in this presentation are not historical facts and are forward-looking. Examples of such forward-looking statements include, but are not limited to: projections or expectations of revenues, income (or loss), earnings (or loss) per share, dividends, capital structure or other financial items or ratios; statements of our plans, objectives or goals, including those related to products or services; statements of future economic performance; and
statements of assumptions underlying such statements. Words such as believes, anticipates, expects, estimates, intends and plans and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, including our ability to execute our restructuring and cost reduction program. When relying on forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, especially in light of the political, economic, social and legal environment in which we operate. Such forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. We do not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario.
Rosneft
278
1.7*
2,6
3,3
LUKOIL
198
LUKOIL
Novatek
114
Gazprom Neft
1,3
Gazprom Neft
0 50 100
112
150 200 250 300
Novatek
0
0,7
1 2 3 4
LUKOIL is the leader in financial efficiency in Russian Oil & Gas industry
* Excluding gain from revaluation of non-controlling interest in OJSC Verkhnechonskneftegaz to its fair value. 4
LUKOIL
24
LUKOIL
13
Rosneft
15.3*
21
Rosneft
6.3*
12
Gazprom Neft
20
Gazprom Neft
12
Novatek
5
10
10 15 20 25 30
Novatek
5
7
7 9 11 13 15
LUKOIL is the leader in financial efficiency in Russian Oil & Gas industry
* Excluding gain from revaluation of non-controlling interest in OJSC Verkhnechonskneftegaz to its fair value. 5
ROACE*, %
2011
2012
1Q 2013
2007
2008
2009
2010
2011
LUKOIL
2012
1Q 2013
35 30 25 20 15 10
Total
Exxon
Shell
40 35 30 25 20 15 10 5 0
Chevron Conoco Phillips
BP
LUKOIL
ENI
5 2003
2004
2005
2006
2007
2008
2009
2010
LUKOIL
2011
2012
1Q 2013
* Source: Companies financial statements. Oil & Gas majors include ExxonMobil, Chevron, Shell, ConocoPhillips,Total, Eni. 6
R E V E N U E E X P E N S E S
Negative factors
Railroad tariffs; 9,4% Freight rates (crude oil); 3,3% Transneft tariffs; -1,4% Real ruble appreciation; 6.6% Freight rates (petroleum products); -2,8%
T A X
-20%
Mineral extraction tax ($); -1,0% Crude oil export tariff ($); 1,4%
Dynamics of rouble exchange rate for FX differences; -11,2%
0%
20%
3,789*
171
Decrease in taxes other than income taxes (including excise and export tariffs)
(422)
(274)
DD&A growth
(235)
OPEX increase
(226)
Net decrease in revenue (less purchases of oil, gas and petroleum products)
(199)
(23)
*1Q 2012 results were affected by leap year effect and currency translation gain
Decrease of equity share in income of affiliates
2 581
Average daily liquid hydrocarbon production; -0.3% Average daily hydrocarbon production; -0.1%
Domestic sale of petroleum products; 13.6% -18% -12% -6% 0% 6% 12% 18%
Hydrocarbon Production
+2.5%
2,18
2,16
2,14
2,12
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
After stabilization in 2012 LUKOIL hydrocarbon production continues to show a steady growth in 1Q 2013
10
th. m
12 10 8
Average commercial rate of drilling for one drilling unit per month (exploration & production drilling)
17% 16% 75%
Mln m 5 4 3 2 1 0
9%
2010
An increase in drilling rate of one drilling unit under per-day payment leads to decreased cost of one meter drilled
1,7
+7.3%
1,6
1,7
1,6
1,5
1Q 2012
1Q 2013
Daily refinery throughputs at the Group and affiliated refineries increased by 0.7%, including growth of 1.1% at Russian refineries
CAGR 10%
2008
2009
2010
2011
2012
12
EURO-5
Diesel
EURO-4
100 80 60
Regulations
Gasoline
EURO-3
40 20 0 2011 2012
Gasoline
2013
2014
Diesel fuel
2015
13
Financial Results
1Q 2013 33,770 (2,450) 4Q 2012 36,019 (2,468) , % (6) (1) Sales OPEX Taxes other than income tax (including excise and export tariffs) Income before income tax Net income Effective income tax rate (4) 2 Basic EPS, $ EBITDA
$ million
, % (4) 11
(8,884)
(8,996)
(1)
(8,884)
(9,055)
(2)
0 (4)
3,374
4,020
(16)
2,581
3,789
(32)
23%
3.42 4,775
9%*
4.90 5,346 (30) (11)
14
* Low effective income tax rate in 1Q 2012 was achieved as a result of foreign exchange differences in the accounts for taxation purposes that lead to reduction of taxable income
Operating Expenses
1Q 2013 1,009 508 121 338 192 79 203 2,450 15,103 4Q 2012 1,040 561 126 327 156 73 185 2,468 17,021 1Q 2013 1,009 508 121 338 192 79 203 2,450 15,103 1Q 2012 906 315 263 287 178 74 192 2,215 16,368
$ million
, % 11 61 (54) 18 8 7 6 11 (8)
15
Hydrocarbon extraction expenses Own refining expenses Refining expenses at third parties and affiliated refineries Expenses for crude oil transportation to refineries Power generation and distribution expenses Petrochemical expenses Other operating expenses Total Cost of purchased crude oil, gas and products
$ million
2,215
1Q 2012 OPEX
Operating Expenses
2 050
2 100
2 150
2 200
2 250
2 300
2 350
2 400
2 450
2 500
+4.7% +2.3%
+2.0%
4,0
4,5
5,0
5,5
6,0
+0.8%
4,7
1Q 2012
5,0
2Q 2012
+0.5%
5,1
3Q 2012
+0.3%
5,4
4Q 2012
2,450
1Q 2013 OPEX
5,3
1Q 2013
16
1 600
1 200
1 605
1 497
1 523
1 546
1 650
829
904
866
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
1Q 2013
4Q 2012
, %
$ million
1Q 2013
1Q 2012
, %
7 (21) (5)
3 4 3
17
The Company net debt remains low. In 2Q 2013 LUKOIL successfully issued $3 bln of eurobonds . The offering consists of 5-year $1.5 bln of 3.4% notes and 10year $1.5 bln of 4.6% notes.
2,9
2,7
-2
-3 -4
3.7
2012
3.9
1Q 2013
-5
Net debt
50 40 30 20 10
0 2007
Debt-to-capital ratio, %
2008
2009
2010
LUKOIL
2011
2012
1Q 2013
2008
2009
LUKOIL
2010
2011
Majors average
2012
1Q 2013
Majors average
Source: Companies financial statements. O&G majors include: ExxonMobil, Royal Dutch Shell, Chevron, BP, ConocoPhillips, Total, Eni.
18
CAPEX Breakdown
1Q 2013 4Q 2012 , %
$ million
1Q 2013
1Q 2012
, %
2,537 1,874
663 630 471 159 3 3 0 121 113 3,404
2,606 1,957
649 788 610 178 27 15 12 191 98 3,710
(3) (4)
2 (20) (23) (11) (89) (80) (100) (37) 15 (8)
2,537 1,874
663 630 471 159 3 3 0 121 113 3,404
2,007 1,634
373 346 167 179 10 6 4 57 42 2,462
26 15
78 82 182 (11) (70) (50) (100) 112 169 38
19
Barents Sea
20
Acquisition of Samara-Nafta
Exploration and development licenses for more than 60 fields within 23 license blocks LUKOIL refining, petrochemical and transportation capacities in the region will create visible synergies
Samara region
50
CAGR 10%
40
12th place for the oil production in Russia (2nd place in Samara region)
30
2009
2010
2011
2012
21
Kama-Oil
In April 2013 LUKOIL acquired 49.99% of Kama-oil increasing ownership to full control
Kama-Oil was created in 2007 as an oil exploration and production operator in Perm region Owns 6 licenses Reserves C1+C2: 175 mln bbl Currently 3 oilfields are producing and 3 license areas are being explored and prepared for production
Kama-Oil oil production, th. bbl per day
4 3 2 1 0
2010
2011
2012
1Q 2013
22
Northern Caspian
Oil production in Northern Caspian, th. bbl per day
90
Korchagin Filanovsky
60 30 0
2011
2012
Caspian Sea
1Q 2013
V. Filanovsky field Supporting blocks are designated for the ice-resistant stationary platform Building of infrastructure for the field Yu. Korchagin field Drilling was completed in May and there were testing works of 117 well with oil flow rate of 6,2 th. bbl per day
23
30 km of Pipeline Completed
Construction of oil preparation unit and oil gathering system, gas-turbine power plant was completed by 70%, export pipeline was completed by more than 40%
First development stage - realization of Early oil Mishrif project is according to the schedule. Commercial production is planned for the end of 2013. Compensation oil in 2014 is expected to amount to 70 mln bbl depending on price
24
5
0 2011
Net income per boe in 1Q 2013, $
2012
1Q 2013
2014E
2015E
Gissar Wells 45, 55 and 56 at Gambulak field and well 7 at Dzharkuduk field are completed Contractation of equipment construction within Full development project is on track Kandym Drilling of 8 wells is completed Kandym gas treatment plant projecting works are underway 4 wells are completed at Shady field
25
80
+13% +4%
90 75
60 59 40 33 38 50 42 52
First-ever interim dividends
20
40
2005
2006
2007
2008
2009
2010
2011
2012
26
Conclusion
27