27 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Feb 13, 2023
Slide 1: 4Q22 & FY22 Results & Outlook 2023-25
4Q22 & FY22 Results & Outlook 2023-25 13 February 2023 1 4Q22 & FY22 Results and 2023 Outlook
Slide 2: 4Q22 & FY22 Results
1 4Q22 & FY22 Results galp.com
Slide 3: 2022 key performance indicators
2022 key performance indicators Strong operating … whilst maintaining … and delivering robust results performance… responsible practices… 127 kboepd Upstream WI 1.2 (-2% YoY) LTIF € 3.8 bn € 2.8 bn € 1.27 bn production Lost time injuries per million Ebitda OCF Net capex hours worked 11.6 $/boe 20 1.
Slide 4: Strategic execution during 2022
Strategic execution during 2022 showcasing strong delivery Upstream Renewables & NB Industrial & Midstream Commercial Sépia & Berbigão FPSOs Profitably growing renewable Top quartile refining Convenience contribution reaching plateau production capacity performance showcasing ongoing transformation
Slide 5: FY2022: Strong free cash flow leading to a solid financial position
FY2022: Strong free cash flow leading to a solid financial position FY22 Cash flow (€ m) OCF of €2.8 bn and CFFO of €3.1 bn supported by WC release from maturing gas derivatives margin accounts (1,061) Net capex of €1.27 bn, considering €140 m 36 247 Titan Solar stake acquisition and USD:EUR appreci
Slide 6: 4Q22: Robust operating results driven by a strong upstream contribution
4Q22: Robust operating results driven by a strong upstream contribution Ebitda OCF Net capex Upstream € 951 m Strong contribution benefiting from higher production and less in-transit cargoes € 791 m € 529 m € 174 m Group Ebitda Renewables 17 m 19 m 47 m € 701 m Seasonal lower QoQ radiation and sola
Slide 7: Outlook
2 Outlook galp.com
Slide 8: Distinctive investment proposition
Distinctive investment proposition combining leading growth and grey-to-green transition Focused Upstream Renewables Growth and Industrial and Commercial Growth Integration Transformation 30 % c. c.10 kgCO e/boe 2 c. 4 GW > 9% 60 % c. > 40 % WI production growth Carbon intensity Gross renewables Ren
Slide 9: Transition to lower carbon and high grading portfolio
Transition to lower carbon and high grading portfolio Rapidly increasing low carbon …with financing structure to reflect Fast integration of low carbon contribution… portfolio evolution contributing to higher valuations OCF > 35 % Low carbon leverage profile Low carbon allowing ample financing optio
Slide 10: Investing to reshape portfolio
Investing to reshape portfolio maintaining financial discipline & focus on returns Net capex 2023-25 Targeted project IRR2 Embedding opportunities to 20 % Upstream crystallise and de-risk value… keeping net capex at ≥ 12 % … supporting portfolio high grading Industrial low carbon projects and low ca
Slide 11: Competitive portfolio in place; 2023 guidance
Competitive portfolio in place 2023 guidance to capture supportive environment 2023-25 Sources & Uses c.€ 3.2 bn c.€ 2.2 bn (€ bn) Ebitda OCF Brent $85/bbl | Ref. margin $9/boe | PVB €60/MWh | Iberian solar price €120/MWh | EUR:USD 1.15 OCF Deleverage Upstream (adjusted for Angola divestment1) Buyba
Slide 12: Business overview
3 Business overview galp.com
Slide 13: Upstream growth and value extraction
Upstream growth and value extraction from low cost & low carbon intensity portfolio Angola divestment Mid-term outlook WI production to remain flat at Total post-tax cash Maintaining industry leading production >110 kboepd over 2023-24 until Bacalhau proceeds of $830 m growth start up Expected WI pr
Slide 14: Competitive renewables position
Competitive renewables position Ensuring access to green power 200 MW additional capacity deployed Mid-term outlook during 2023 and accelerating development & Project execution and portfolio growth key to ensure construction successful capacity build up 9 c. GW Targeting faster technology diversific
Slide 15: Transforming Industrial asset base
Transforming Industrial asset base key to deliver decarbonisation path 2023 outlook Cyclical refining maintenance Progressing to sanction key projects, supported on to enhance system reliability integrated profile and safety Renewable biofuel production (HVO project) 75 c. mboe Refining 270 ktpa Par
Slide 16: Midstream to benefit from gas trading activities
Midstream to benefit from gas trading activities with new flexibility to manage portfolio 2023 outlook Gas trading with no relevant hedges & pre-sold volumes in +15 % place… Trading gas volumes increase 2023-25 c. 50TWh Trading gas volumes 2023 Increasing Ebitda contribution (€ m) … and supported by
Slide 17: Reshaping Commercial business
Reshaping Commercial business to maintain a strong position in Iberia Short-term outlook Transforming business to Expanding leadership position in EV charging leverage convenience & low carbon >5 k >10 k EV charging points EV charging points 7.4 c. mton (flat YoY) by YE23 (2.4 k by YE22) by 2025 Oil
Slide 18: Appendix
4 Appendix galp.com
Slide 19: Appendix Index
Appendix Index 1 | Macro assumptions & sensitivities 2 | Key guidance 3 | P&L and balance sheet 4 | Debt indicators 5 | Renewables portfolios 6 | Carbon-related targets 7 | Upstream Reserves and Resources 19 4Q22 & FY22 Results and 2023 Outlook
Slide 20: Macro assumptions and sensitivities
Macro assumptions and sensitivities Macro assumptions 2023 2023-25 Brent price $85/bbl $80/bbl Galp refining margin $9/boe $6 – 7/boe Iberian PVB natural gas price €60/MWh €60/MWh Solar captured price €120/MWh €100/MWh EUR:USD 1.15 1.15 2023 sensitivities (€ m) Change Ebitda OCF Brent price $5/bbl 1
Slide 21: Key Guidance for 2023
Key Guidance for 2023 Operating indicators Financial indicators Upstream RCA Ebitda € bn 3.2 WI production kboepd >110 Upstream € bn >2 Production costs $/boe c.3 Renewables & NB €m >180 Renewables Industrial & Midstream €m >550 Renewable capacity by YE GW 1.6 Commercial €m c.300 Industrial & Energy
Slide 22: 2022 results
2022 results P&L (€ m) Balance Sheet (€ m) 31 Dec 30 Sep 31 Dec 4Q21 3Q22 4Q22 FY2021 FY2022 2021 2022 2022 644 784 951 RCA Ebitda 2,322 3,849 Net fixed assets 6,667 7,780 6,876 593 612 791 Upstream 2,020 3,083 Rights of use (IFRS 16) 1,079 1,119 1,116 2 38 17 Renewables & New Businesses -13 50 Work
Slide 23: Debt indicators
Debt indicators Debt Indicators (€m) Debt reimbursement (€m) 31 Dec 30 Sep 31 Dec 2021 2022 2022 1,400 Cash and cash equivalents 1,942 2,413 2,432 1,200 1,000 Undrawn credit facilities 816 837 1,484 800 Gross debt 4,300 4,509 3,987 600 Net debt 2,357 2,096 1,555 400 Leases (IFRS 16) 1,179 1,248 1,27
Slide 24: Carbon-related targets
Carbon-related targets Metrics and methodology Metric Methodology 2017 2022 2030 2050 (reference year) (vs 2017) Absolute Emissions’ c.4.1 c.3.3 reduction from operations Equity emissions related to Galp’s operations (scopes 1 & 2) mtonCO2e mtonCO2e -40% (S 1 & 2) (S 1 & 2) Carbon Intensity Net Zero
Slide 25: Upstream Reserves and Resources
Upstream Reserves and Resources mboe 2021 2022 (exc. Angola) Change Reserves 1P 410 367 -10% Oil 333 295 -11% Gas 77 72 -7% 2P 712 668 -6% Oil 612 572 -7% Gas 100 96 -4% 3P 950 891 -6% Oil 849 795 -6% Gas 101 97 -4% Contingent resources 1C 417 525 26% 2C 1,521 1,653 9% 3C 3,179 3,349 5% Prospective
Slide 26: Disclaimer
Disclaimer This document may include forward-looking statements. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements express future expectations that are based on management’s expectations and assumptions as of
Slide 27: galp.com
galp.com