Galp Energia, Sgps S.a. Class B · EURONEXT:GALP

Galp Energia, Sgps S.a. Class B — Q2 2017 Earnings Presentation

18 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 31, 2017

  1. Slide 1: Results Second quarter 2017

    Results Second quarter 2017 July 31, 2017 Third quarter 2016 results

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 By attending or reading this presentation, you acknowledge and agree to be bound by the following limitations and restrictions. This presentation has been prepared by Galp Energia, SGPS, S.A. (“Galp” or the “Company”) and may be amended and supplemented, but may not be relied

  3. Slide 3: 2Q17 highlights

    2Q17 highlights 3  Ebitda of €473 m, up 40% YoY and 13% QoQ, driven by upstream production growth and downstream performance  Lula and Iracema projects with seven units in operation, of which six at plateau level  R&M benefiting from high refining system availability and higher refining margins 

  4. Slide 4: Agenda

    Agenda 4 Execution Update Financial Overview Appendix Second quarter 2017 results

  5. Slide 5: Pre-salt execution driving production growth

    Pre-salt execution driving production growth 5 Brazil Angola Tirar flaring Lula South FPSO BBLT platform  Six FPSOs currently producing at plateau level, with Q2  WI production from blocks 14/14k declining as production impacted by maintenance activities expected  Start-up of the first replicant

  6. Slide 6: Mozambique: Coral South FID

    Mozambique: Coral South FID 6 Coral South FLNG  Significant milestone for the development of Mozambique as a LNG province  FLNG with 3.4 mtpa capacity and offtake agreement for 100% of production  First gas expected by 2022  Working on Mamba first stage of development Second quarter 2017 results

  7. Slide 7: Downstream contribution supported by strong R&M

    Downstream contribution supported by strong R&M 7 Refining & Marketing Gas & Power Falta imagem  High availability of the refining system, with realised  Contribution normalised after gas sourcing margin of $5.7/boe constraints during 1Q17  Marketing performance driven by Iberian economic  Tradi

  8. Slide 8: Execution and environment driving 2017 performance

    Execution and environment driving 2017 performance 8  2017 Group Ebitda now expected 2017 Galp 1H17 2017 plan plan above initial guidance Brent ($/bbl) 50.0 51.7  Group capex estimated at c.€1.0 bn Benchmark refining margin ($/bbl) 2.5 3.9  Maintaining production guidance WI production (kboepd) 9

  9. Slide 9: Agenda

    Agenda 9 Execution Update Financial Overview Appendix Second quarter 2017 results

  10. Slide 10: Q2 Ebitda of €473 m, up 40% YoY and 13% QoQ

    Q2 Ebitda of €473 m, up 40% YoY and 13% QoQ 10 Profit & Loss RCA (€m) 2Q16 1Q17 2Q17  Upstream Ebitda supported by production growth, but impacted by lower oil prices QoQ Turnover 3,267 3,844 3,779 Ebitda 337 419 473  Downstream benefiting from supportive refining environment, marketing performanc

  11. Slide 11: Upstream development as main capex driver

    Upstream development as main capex driver 11 Capital Expenditure (€m)  Lower capex YoY due to the reduction of drilling intensity in Brazil 630 588  Around 89% of total investment allocated to E&P, of which Brazil accounted for c.75% 411  2H17 to include first significant capex from the Coral Sou

  12. Slide 12: Strong CF generation supported by operational performance…

    Strong CF generation supported by operational performance… 12 1H17 Change in net debt (€m)  Cash flow supported by upstream production growth and downstream environment 987 71 237  Normalisation of inventories in 2Q17 390  Net debt reduction during H1 despite dividend payment of €215 m in 2Q17 21

  13. Slide 13: … and maintaining robust financial position

    … and maintaining robust financial position 13 Balance Sheet (€m)1 31 December, 31 March, 30 June,  Net fixed assets and equity down QoQ 2016 2017 2017 impacted by US Dollar and Brazilian Real depreciation against the Euro Net fixed assets 7,721 7,901 7,458 Work in progress 2,650 2,687 2,460  Net

  14. Slide 14: Agenda

    Agenda 14 Execution Update Financial Overview Appendix Second quarter 2017 results

  15. Slide 15: E&P: Resilient results despite decline in oil prices QoQ

    E&P: Resilient results despite decline in oil prices QoQ 15 Main E&P data 2Q16 1Q17 2Q17  Production up 2% QoQ despite Brazil units maintenance and Angola natural decline 1 Working interest production kboepd 54.7 88.0 89.9 Oil production kbpd 51.7 76.9 78.0  Ebitda affected by lower Brent price an

  16. Slide 16: R&M: Capturing favourable environment

    R&M: Capturing favourable environment 16 Main R&M data 2Q16 1Q17 2Q17  Maximising realised refining margin through sourcing optimisation and arbitrage opportunities Galp refining margin USD/boe 4.6 5.1 5.7 Refining cash cost 1 USD/boe 1.7 1.7 1.6  Refining contribution also supported by higher 2 I

  17. Slide 17: G&P: Contribution reflecting lower trading opportunities

    G&P: Contribution reflecting lower trading opportunities 17 Main G&P data 2Q16 1Q17 2Q17  Results normalised after Q1 sourcing restrictions NG/LNG total sales volumes mm 3 1,593 2,006 1,726 Sales to direct clients mm3 881 1,149 1,052  Volumes up YoY due to higher sales to direct clients and despit

  18. Slide 18: Investor Relations team

    Investor Relations team 18 Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes João G. Pereira Results and presentation weblink : João P. Pereira www.galpenergia.com/en/investidor/Relatorios-e- Teresa Rodrigues resultados/resultados-trimestrais For further information on Galp, please go to: +351 21 724 08

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