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Kultur Dokumente
17.02.2009
INTRODUCTION
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
1
AGENDA
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
1 Introduction to LUKOIL
2 Introduction to LITASCO SA
3
The “Integrated Trader’s Compromise”
2
LUKOIL GROUP – KEY FACTS
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
Net income 2008: circa $12 bln* • LUKOIL is one of the world’s largest private vertically
integrated oil and gas companies
• Operations in over 30 countries and more than
Proven hydrocarbon reserves: 20.4 bln
150,000 employees
bbls
• Market cap near $29 bln**
• 1.3% of global oil reserves and 2.3% of global oil
production
Production of marketable hydrocarbons:
• 18.6% of Russian oil production and 18.1% of Russian
2.06 mln bpd*
oil refining
• The second largest private company worldwide by
proven reserves of hydrocarbons
Refineries throughput: 1.12 mln bpd
• The 6th largest private oil company worldwide by
production of hydrocarbons
• The largest Russian private oil group with annual
turnover near $ 100 bln
Refining in Europe: 0.22 mln bpd*
• The first Russian company to receive full listing on the
LSE
• The only private Russian oil company whose share
capital is dominated by minority stakeholders
Crude and products export: 1.36 mln bpd* • The largest corporate taxpayer in Russia: $33 bln of
taxes and duties paid in 2008 due to highest export
volumes amongst peers
* Preliminary data based on the results announced at Bod 13/01 and Litasco SA analysis **at closing 09/02/09 (RTS&MICEX) 3
LUKOIL GROUP – MISSION AND GOALS
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
4
LUKOIL GROUP – KEY FIGURES
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
9 months
2007 2006 2005
2008
Total revenue
89.7 81.9 67.7 55.8
($ bln)
EBITDA
16.7 15.4 12.3 10.4
($ bln)
Total sales volume
88.9 119.1 115.6 112.5
(million tons)
Crude oil production
1.895 1.953 1.926 1.820
(million barrels per day)
Refined products
1.135 1.054 0.978 0.946
(million barrels per day)
Petrol stations
6,758 6,090 5,793 5,830
worldwide
5
LUKOIL OPERATIONS ON THE MAP
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
Murmansk
Varandey
Timan Pechora
Vitino
Usinsk
West Siberia
Ukhta
FINLAND
Urals
Vysotsk
Primorsk Refineries
Tallinn Perm
St Petersburg
ESTONIA Production
VentspilsLATVIA
Norsi RUSSIA regions
Pipelines
LITHUANIA
Rail
Svetly
Main export
BIELORUSSIA
POLAND Volga ports
Export sea
UKRAINE cargoes
Volgograd
Kumkol
Odessa
ROMANIA
MOLDOVA Yuzhny
Kerch KAZAKHSTAN
Petrotel Novorossiysk
Caspian
Burgas Tuapse
BULGARIA
ISAB TURKEY
6
AGENDA
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
1 Introduction to LUKOIL
2 Introduction to LITASCO SA
3 The “Integrated Trader’s Compromise”
7
KEY DETAILS OF THE LITASCO GROUP
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
Corporate structure
8
MISSION AND VISION OF LITASCO SA
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
Our vision:
To be the leading oil-trading and supply company in Europe
and the FSU, and to challenge the majors in international markets
To ensure the To develop To support the To develop a
successful a global world- growth and strong and
export of class multi- value-added profitable
LUKOIL crude commodity marketing presence in
and products trading business activities of local markets
while achieving based on LUKOIL’s through the
the highest entrepreneurial downstream development
possible (third-party) operations of specialized
netback trading outside Russia businesses
LITASCO SA’ s mission is to maximize the value of LUKOIL’s crude oil and
petroleum product exports and to expand its trading activities into new
areas in the most efficient and safest way possible
9
LITASCO SA SITS IN THE MIDDLE OF THE LUKOIL SUPPLY
CHAIN, BRIDGING RUSSIA AND INTERNATIONAL MARKETS
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
LUKOIL
LUKOIL/LITASCO SA Business Activities
LITASCO SA
Refining Marketing
(International) (Wholesale /
Retail)
Exploration Crude Products
and production
(Russia) International Marketing, Supply and Trading
Handles logistics between Russian and international
business units and markets. Trades at own account
Refining
(Russia) Products
International Markets
Marketing
(Russia)
LITASCO SA participates in key transactions along the
petroleum value chain:
• Markets LUKOIL crude and refined products to international
markets
• Supplies LUKOIL and 3rd party crude to LUKOIL refineries
10
WHERE DOES LITASCO SA ADD VALUE?
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
System supply Geneva & Moscow Managing crude oil purchases (supply) on behalf
of LUKOIL‘s refining and marketing operations in
Eastern Europe (LUKOIL’s Romanian & Bulgarian
refineries and the newly acquired refinery stake
in ISAB, Sicily, Italy)
12
TRADING FOCUS OF LITASCO SA’S
MAIN INTERNATIONAL OFFICES
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
Stockholm
Rotterdam Hamburg
Geneva
New Jersey
Dubai
Singapore
Focus of Crude oil and all Local market Crude oil Naphtha Local Marine fuels in
operations products fuel oil and All products Gasoil market Singapore
marine fuels Petrochemicals Gasoline gasoil Trading all
sales products in
Singapore and
the Middle East
Main Transatlantic Benelux coast Baltic - W Europe Africa- Intra-
markets Caribbean US Baltic-Benelux Black Sea – Western Scandinavian Persian Gulf–
served Mediterranean Europe (Gothenburg- India–SE Asia
Benelux-Far
East/US Copenhagen)
NW Russia - Europe
90.6
Volume
traded 8.7
2008, 3.4 5.3
2.5
0.6
mln mt
13
AGENDA
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
1 Introduction to LUKOIL
2 Introduction to LITASCO SA
3 The “Integrated Trader’s Compromise”
14
NOT EVERYONE TRADES
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
Position taking • Takes naked, long, or short positions • To profit from anticipated
in physical / financial markets to but uncertain changes in
achieve profits through the successful prices by leveraging
anticipation of future price movements proprietary information
17
POTENTIAL IMPACT OF TRADING APPROACH
ON SYSTEM PROFITS
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
Trading
enhancement to “Pure” traders
system profits Profits for oil majors tend to
extend profits by
plateau as incremental data is less
taking speculative
relevant to the physical business
risks
100%
System profits increase
as the organization gets
access to incremental
market data
50%
Relative
position of
majors
INDEPENDENT INTEGRATED
19
ADVANTAGES OF THE INTEGRATED APPROACH
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
• Guaranteed volumes
• Low financing costs with the help of the parent company’s
credit rating
• Strong market position, bargaining power
• Participation in system optimization and resulting
participation in profits
• Access to and influence on logistical and asset investments
20
LITASCO SA TRADING RESULTS
LITASCO SA - LUKOIL INTERNATIONAL TRADING AND SUPPLY COMPANY
60
Sales by product
category, 50
2005-2008
Million metric tons 40
30
20
10
0
CRUDE OIL FUEL OIL GASOIL GASOLINE OTHER
PRODUCTS
500
Profit, 450
2005-2008
400
USD million
350
300
250
200
150
100
50
0
GROSS PROFIT OPERATING PROFIT NET INCOME
BACK UP
23
WITHIN EACH TRADING MODEL, PLAYERS WILL ASSUME VARIOUS
TRADING ROLES BACK UP
Asset optimization • Trading to fulfill basic operational needs and contractual • Maximizes day-to-day margins by
obligations of an organization. Asset optimizers purchase optimizing asset economics
and sell commodities at levels supportive of their assets and
do not look to profit from purchases or sales in excess of
system needs
System trading • Using operational needs of a system as the basis for trading • Leverages asset position, unique
decisions, but extending beyond asset optimization to knowledge, and risk management
purchase and sell in excess of system needs to capitalize on
expertise to create additional value
favorable market prices. A system trader might purchase
excess quantity with intent to store and resell at a later date
for profit.
Arbitrage • Leveraging price differentials in different markets for the • Profits from superior knowledge of
same or related commodities to capture profit. Arbitragers market dynamics without taking on
avoid risk by simultaneously buying in one market and significant additional risk
selling in another.
Market making • Continual transaction with market participants in attempt to • Provides liquidity by offering to buy
match buyers and sellers to maintain a net neutral position. and/or sell at all times
Market makers quote a buy price lower than their sell price
and capture the spread (bid-ask spread)
Speculation • Taking naked, long, or short positions in physical/financial • Profits from anticipated but
markets with the objective of achieving profits through the uncertain changes in prices by
successful anticipation of future price movements. leveraging proprietary information
Leveraging proprietary information and acceptance of
additional risks with the objective of capturing profits
24
OVERVIEW OF PROFILED COMPANIES BACK UP
Company Description
Pure-play Glencore Switzerland-based, private company engaged in the physical trading, purchasing, and supply of energy, metals, and agricultural
independent commodities (formerly Marc Rich/Clarendon)
trading
companies Vitol Private, Netherlands-based company focused on marketing physical oil, metals, and agricultural products (primarily sugar)
With limited link to Hess Energy (U.S.)
Hetco Hetco covers the full range of energy Commodities and weather products
Cargill Cargill’s energy division and Cargill-Alliant (Minnesota) trade and distribute crude and refined petroleum products, natural gas,
and power
Trafigura Trafigura is a private, global trader of crude, refined products, natural gas, and metals, with corporate headquarters located in
Lucerne, Switzerland
Trading arms TotalFinaElf French oil company with substantial upstream and downstream activities supported by international trading in both crude and
linked to asset refined products
businesses Equiva Shell’s Houston-based supply and trading arm of Equilon, Motiva, and affiliates of Shell and Texaco that trades crude and refined
products
Based in Irving, Texas, ExxonMobil is the world’s largest oil company and is involved in crude, refined products, natural gas, and
ExxonMobil
chemicals trading and marketing
BP London-based oil company, behind only ExxonMobil and Royal Dutch Shell in size, involved in crude, refined products, natural
gas, and chemicals trading
Pemex PMI, the trading arm of Mexico’s national oil company, Pemex, trades principally refined products
Koch Koch, a privately held company based in Wichita, owns a diverse group of companies engaged in trading, investment, and
operations in petroleum, chemicals, and natural-gas liquids
Dynegy Houston-based Dynegy Marketing and Trade focuses on marketing, trading, and arbitrage opportunities that exist among power, natural
gas, and coal that can be enhanced by the control and optimization of related physical assets and its alliances with leading utility
companies
25
OVERVIEW OF PROFILED COMPANIES (CONT.) BACK UP
Company Description
Trading Reliant (Houston) uses their natural-gas and power trading skills and extensive asset positions to better understand
Reliant
arms key regions and create sophisticated commercial insights
linked to
Mirant Atlanta-based Mirant pursues an integrated business model that merges risk management and marketing knowledge
asset with operational excellence (leveraging its investment-grade credit) to provide energy commodity and wholesale
businesses energy solutions
Williams Williams Energy Marketing & Trading (Tulsa) is a top-tier, fully integrated energy marketer providing the buying,
selling, and transportation of natural gas, electricity, crude oil, refined products, and natural-gas liquids, as well as an
extensive menu of risk management products
Financial MSDW The commodities department of MSDW trades physical commodities as well as related derivatives for oil, natural gas,
houses power, base metals, and precious metals
J Aron, the commodities division of Goldman Sachs, specializes in over-the-counter options trading of energy,
J Aron precious metals, and agricultural products
26
…WHICH INFLUENCES THE REQUIRED MANAGEMENT SYSTEMS…
BACK UP
Asset Asset operations/ Large number of clerks Relatively un- Simple systems with
optimization managers communicate Few traders/risk sophisticated relatively small limits
with dealing room managers Linked to asset Explicit measurement
optimization/ relative to benchmark
logistics/scheduling
System Product dominated by Large number of skilled Low-cost, high-volume Risk monitoring and
trading close origination / trading specialists (trading, dedicated systems individual online trader
Increasing trading complexity
Position Trader-dominated Few exceptional risk Large investment Separate trading and risk
taking organization with centrally takers supported by especially in position monitoring functions,
coordinated risk taking traders to access deal monitoring systematic measurement
flows and research staff of intramarket and
to interpret information intermarket risks
27
…AND ULTIMATELY THE RISK CONTROL SYSTEMS
BACK UP
system
Mainly
based
Risk control organization
Risk control is the
most important
Components
of both
factor determining
the organization’s
shape
Organization
-based
Mainly
Straight-forward nature Increasing complexity High complexity of activities demands significant risk level
of trading activities demands additional of risk monitoring
allows assets to be communication between Information flow requires highly connected, flat
“siloed” along functional asset managers organization
and organizational lines Benefit to organization’s Interface of these requirements points to system-based,
total returns through rather than organizationally-based risk reduction methods
information sharing