Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Q1 2023 Earnings Presentation
64 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, May 5, 2023
Slide 1: Q1 2023
Q1 2023 5 May, 2023 Unaudited
Slide 2: Cautionary Statement
Cautionary Statement This document may include forward-looking statements. All statements other than statements of historical facts periods. In addition, the results are also measured in accordance with the replacement cost method, adjusted are, or may be deemed to be, forward-looking statements. Fo
Slide 3: Table of Contents
Table of Contents 1. Results Highlights 4 2. Upstream 8 3. Renewables & New Businesses 10 4. Industrial & Midstream 12 5. Commercial 14 6. Financial Data 16 6.1 Income Statement 17 6.2 Capital Expenditure 18 6.3 Cash Flow 19 6.4 Financial Position 20 6.5 Financial Debt 21 6.6 Share Repurchase Progra
Slide 4: Results Highlights
RESULTS HIGHLIGHTS
Slide 5: Results Highlights First quarter 2023
1st QUARTER 2023 MAY 2023 1. RESULTS • Commercial: RCA Ebitda was €71 m, up YoY, supported by an overall recovery HIGHLIGHTS in oil volumes, namely in the B2B aviation segment, which is already close to pre- pandemic levels. Group RCA Ebit was €674 m, a 25% increase YoY, reflecting reduced DD&A from
Slide 6: Short Term Outlook
1st QUARTER 2023 MAY 2023 Short Term Outlook Financial indicators RCA Ebitda € bn 3.2 Key operating and financial guidance for 2023 is maintained, in accordance with the macro Upstream € bn >2 assumptions and sensitivities provided. Renewables & NB €m >180 Industrial & Midstream €m >550 Assumptions
Slide 7: Financial data, operating data, market indicators
1st QUARTER 2023 MAY 2023 Financial data Operating data €m (RCA, except otherwise stated) Quarter Quarter 1Q22 4Q22 1Q23 % Var. YoY 1Q22 4Q22 1Q23 % Var. YoY Working interest production (kboepd) 131.1 130.4 120.3 (8%) RCA Ebitda 869 951 864 (1%) Net entitlement production (kboepd) 129.5 128.6 120.1
Slide 8: Upstream
1st QUARTER 2023 MAY 2023 UPSTREAM
Slide 9: Upstream
1st QUARTER 2023 MAY 2023 2. UPSTREAM First quarter 2023 Operations €m (RCA, except otherwise stated; unit figures based on total net entitlement production) Quarter WI production was 120.3 kboepd, lower YoY, as result of the Angolan upstream assets sale. On a comparable basis, current portfolio (Br
Slide 10: Renewables & New Businesses
. RENEWABLES & NEW BUSINESSES
Slide 11: Renewables & New Businesses
1st QUARTER 2023 MAY 2023 3. RENEWABLES & NEW BUSINESSES First quarter 2023 Operations €m (RCA, except otherwise stated) Renewable installed capacity amounted to 1.4 GW by the end of the quarter, a Quarter c.355 MW increase YoY. 1Q22 4Q22 1Q23 % Var. YoY Renewable energy generation amounted to 448 G
Slide 12: Industrial & Midstream
1st QUARTER 2023 MAY 2023 INDUSTRIAL & MIDSTREAM
Slide 13: Industrial & Midstream
1st QUARTER 2023 MAY 2023 4. INDUSTRIAL & MIDSTREAM First quarter 2023 Operations €m (RCA, except otherwise stated) Raw materials processed in the quarter were 19.6 mboe, 10% lower YoY, Quarter reflecting the large planned maintenance activity performed in the hydrocracker. 1Q22 4Q22 1Q23 % Var. YoY
Slide 14: Commercial
1st QUARTER 2023 MAY 2023 COMMERCIAL
Slide 15: Commercial
1st QUARTER 2023 MAY 2023 5. COMMERCIAL First quarter 2023 Operations Oil products’ sales increased YoY, to 1.7 mton, with an overall recovery in oil €m (RCA, except otherwise stated) volumes demand, namely in the B2B aviation segment, which is already at close Quarter to pre-pandemic levels. 1Q22 4
Slide 16: Financial Data
1st QUARTER 2023 MAY 2023 FINANCIAL DATA
Slide 17: Income Statement
1st QUARTER 2023 MAY 2023 6. FINANCIAL DATA 6.1 Income Statement First quarter 2023 €m (RCA, except otherwise stated) RCA Ebitda was €864 m, reflecting the strong operating performance in the Quarter quarter, namely on Industrial & Midstream and Commercial activities. IFRS Ebitda amounted to €790 m,
Slide 18: Capital Expenditure
1st QUARTER 2023 MAY 2023 6.2 Capital Expenditure First quarter 2023 Capex totalled €172 m, with Upstream accounting for 67% of total investments, whilst the €m downstream activities represented 10% and Renewables & New Businesses 19%. Quarter Investments in the Upstream were mostly directed to proj
Slide 19: Cash Flow
1st QUARTER 2023 MAY 2023 6.3 Cash Flow First quarter 2023 €m (IFRS figures) Galp’s OCF was €363 m, reflecting a high concentration of taxes payments Quarter (phasing effect) related to upstream activities in Brazil. CFFO reached €500 m, including an inventory effect of €-122 m and a €275 m working
Slide 20: Financial Position
1st QUARTER 2023 MAY 2023 6.4 Financial Position First quarter 2023 €m (IFRS figures) On March 31, 2023, net fixed assets were €7.0 bn, including work-in-progress Var. vs of c.€2.1 bn, mostly related to the Upstream business. Assets/liabilities held for 31 Dec. 2022 31 Mar. 2023 sale are entirely re
Slide 21: Financial Debt
1st QUARTER 2023 MAY 2023 6.5 Financial Debt Debt maturity profile (€ m) €m (except otherwise stated) Var. vs 1,200 31 Dec. 2022 31 Mar. 2023 31 Dec. 2022 Cash and equivalents 2,432 2,035 (397) 1,000 Undrawn credit facilities 1,484 1,584 100 800 Bonds 2,467 1,865 (602) Bank loans and other debt 1,52
Slide 22: Share Repurchase Programme
1st QUARTER 2023 MAY 2023 6.6 Share Repurchase Programme Programme Amount Start Date Duration Status Amount Invested Total Shares Bought 2022 Fiscal Year1 €500 m 15/02/2023 Throughout 2023 Ongoing €77 m 7,177,748 1 All figures as of 31st of March 2023. Buyback Programmes Related to the 2022 fiscal y
Slide 23: Reconciliation of IFRS and RCA Figures
1st QUARTER 2023 MAY 2023 6.7 Reconciliation of IFRS and RCA Figures Ebitda by segment €m 1Q23 1Q22 Ebitda RC RCA Ebitda RC RCA Inventory effect Special items Inventory effect Special items IFRS Ebitda Ebitda IFRS Ebitda Ebitda 790 122 912 (48) 864 Galp 1,048 (188) 860 9 869 596 - 596 (48) 548 Upstr
Slide 24: Special Items
1st QUARTER 2023 MAY 2023 6.8 Special Items Quarter 1Q22 4Q22 1Q23 Items impacting Ebitda 9 - (48) Matosinhos Refinery 9 - - Ebitda - Assets/liabilities held for sale (Angola) - - (48) Items impacting non-cash costs 9 - 4 Matosinhos Refinery 9 - - DD&A-Assets/liabilities held for sale (Angola) - - 4
Slide 25: IFRS Consolidated Income Statement
1st QUARTER 2023 MAY 2023 6.9 IFRS Consolidated Income Statement €m Quarter 1Q22 4Q22 1Q23 Sales 5,548 6,107 5,072 Services rendered 114 81 74 Other operating income 139 70 110 Operating income 5,800 6,258 5,256 Inventories consumed and sold (4,142) (4,985) (3,688) Materials and services consumed (4
Slide 26: Consolidated Financial Position
1st QUARTER 2023 MAY 2023 6.10 Consolidated Financial Position osition €m €m 31 Dec. 2022 31 Mar. 2023 31 Dec. 2022 31 Mar. 2023 Assets Equity Tangible fixed assets 5,700 5,657 Share capital 815 815 Goodwill 70 69 Buybacks - (77) Other intangible fixed assets 672 689 Share premium 82 82 Rights of us
Slide 27: Basis of Reporting
1st QUARTER 2023 MAY 2023 BASIS OF REPORTING
Slide 28: Basis of Reporting
1st QUARTER 2023 MAY 2023 7. BASIS OF REPORTING Galp’s consolidated financial statements have been prepared in accordance with IFRS. The For the purpose of evaluating Galp’s operating performance, RCA profitability measures financial information in the consolidated income statement and in the consol
Slide 29: Appendix
1st QUARTER 2023 MAY 2023 APPENDIX
Slide 30: Appendix Index
1st QUARTER 2023 MAY 2023 8. Appendix INDEX Interim Condensed Consolidated Statement of Financial Position ____________________________________________________________________________________ 31 Interim Condensed Consolidated Income Statement and Consolidated Statement of Comprehensive Income ______
Slide 31: Interim Condensed Consolidated Statement of Financial Position
1st QUARTER 2023 MAY 2023 Interim Condensed Consolidated Statement of Financial Position Galp Energia, SGPS, S.A. Interim Condensed Consolidated Statement of Financial Position as of 31 March 2023 and 31 December 2022 (Amounts stated in million Euros - € m) Assets Notes March 2023 December 2022 Non-
Slide 32: Equity and Liabilities
1st QUARTER 2023 MAY 2023 Equity and Liabilities Notes March 2023 December 2022 Equity: Share capital and share premium 897 897 Own shares (77) - Reserves 1,573 1,562 Retained earnings 1,976 1,703 Total equity attributable to shareholders: 4,370 4,161 Non-controlling interests 18 1,005 956 Total equ
Slide 33: Interim Condensed Consolidated Income Statement
1st QUARTER 2023 MAY 2023 Interim Condensed Consolidated Income Statement and Consolidated Statement of Comprehensive Income Galp Energia, SGPS, S.A. Interim Condensed Consolidated Income Statement and Consolidated Statement of Comprehensive Income for the three-month periods ended 31 March 2023 and
Slide 34: Interim Condensed Consolidated Statement of Changes in Equity
1st QUARTER 2023 MAY 2023 Interim Condensed Consolidated Statement of Changes in Equity Galp Energia, SGPS, S.A Interim Condensed Consolidated Statement of changes in equity for the three-month periods ended 31 March 2023 and 31 March 2022 (Amounts stated in million Euros - € m) Share Capital and Sh
Slide 35: Interim Condensed Consolidated Statement of Cash Flow
1st QUARTER 2023 MAY 2023 Interim Condensed Consolidated Statement of Cash Flow Galp Energia, SGPS, S.A. Condensed Consolidated Statement of Cash Flow for the three-month periods ended 31 March 2023 and 31 March 2022 (Amounts stated in million Euros - €m) Notes March 2023 March 2022 Income/(Loss) be
Slide 36: Notes to the Condensed Consolidated Financial Statements
1st QUARTER 2023 MAY 2023 Notes to the Condensed Consolidated Financial Statements 1. Corporate information Galp Energia SGPS, S.A. (the Company) has its Head Office in Lisbon, Portugal and its shares are listed on Euronext Lisbon. 2. Basis for preparation, changes to the Group’s accounting policies
Slide 37: Non-current assets held for sale
1st QUARTER 2023 MAY 2023 2.3. Non-current assets held for sale Resulting from the sale of the assets and liabilities of the Angolan upstream companies, the assets and liabilities of these companies were classified as non-current assets and liabilities held for sale until the Angolan government appr
Slide 38: Own shares and segment reporting
1st QUARTER 2023 MAY 2023 On April 29 2022, Galp Shareholders approved the acquisition of own shares up to 9% of its Share capital. As such, Galp has initiated on the 15 February a programme to repurchase Galp Energia SGPS, S.A. own shares in the amount of €500m. Until 31 March 2022, 7,177,748 share
Slide 39: Segment reporting table
1st QUARTER 2023 MAY 2023 Unit: € m Industrial Renewables Consolidation Consolidated Upstream Commercial Others & Midstream & New businesses adjustments 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Sales and services rendered 5,146 5,661 965 851 1,980 2,314 2,610 2,873 80 24
Slide 40: Geographical segment details and reconciliation
1st QUARTER 2023 MAY 2023 The details of sales and services rendered, tangible and intangible assets and financial investments for each geographical region in which Galp operates were as follow: Unit: € m Sales and services Tangible and intangible Financial investiments rendered 1 assests 2023 2022
Slide 41: Tangible assets
1st QUARTER 2023 MAY 2023 4. Tangible assets Unit: € m Land, natural Plant and Assets under resources and Other equipment Total machinery construction buildings As at 31 March 2023 Acquisition cost 1,301 11,160 518 2,235 15,214 Impairment (39) (227) (3) (275) (543) Accumulated depreciation and deple
Slide 42: Leases
1st QUARTER 2023 MAY 2023 6. Leases Right-of-use assets Unit: € m FPSO's1 Buildings Service stations Vessels Other usage rights Total As at 31 March 2023 Acquisition cost 730 36 291 306 250 1,613 Accumulated amortisation (199) (22) (51) (91) (68) (431) Impairment - - (33) - - (33) Net Value 531 14 2
Slide 43: Leases and investments in associates
1st QUARTER 2023 MAY 2023 The amounts recognised in consolidated profit or loss were as follows: Unit: € m March 2023 March 2022 195 116 Interest on lease liabilities 22 19 Expenses related to short term, low value and variable payments of operating leases 1 173 97 1 Includes variable payments and s
Slide 44: Investments in associates and inventories
1st QUARTER 2023 MAY 2023 7.2. Investments in associates Unit: € m Share capital As at 31 As at 31 March increase/ Equity Method Other adjustments Dividends December 2022 2023 decrease 125 (10) 19 10 - 143 Belém Bioenergia Brasil, S.A. 73 (7) 17 6 - 89 Sonangalp - Sociedade Distribuição e Comerciali
Slide 45: Trade and other receivables
1st QUARTER 2023 MAY 2023 The reduction of €47 m was recognised in the caption cost of sales being part of the consolidated Profit or Loss. This reduction, which resulted on the application on the Net realizable Value (NRV), was caused by the price fluctuation in the markets during the period under
Slide 46: Other debtors and court deposits
1st QUARTER 2023 MAY 2023 Other debtors/Other non-current receivables include an amount of €180 m relating to court deposits regarding the lawsuit between BM-S-11 consortium and the ANP. The ANP claims that the oil fields of Lula and Cerbambi, which are located within the BM-S-11, should be unified
Slide 47: Cash and cash equivalents; Financial debt
1st QUARTER 2023 MAY 2023 11. Cash and cash equivalents Unit: € m Notes March 2023 December 2022 2,025 2,421 Cash at bank 2,035 2,432 Bank overdrafts 12 (10) (11) 12. Financial debt Unit: € m March 2023 December 2022 Notes Current Non-current Current Non-current 242 3,134 800 3,187 Bank loans 150 1,
Slide 48: Cost of financial debt and repayment plan
1st QUARTER 2023 MAY 2023 The average cost of financial debt for the period under review, including charges for credit lines, amounted to 2.72%. Financial debt, excluding origination fees and bank overdrafts, had the following repayment plan as at 31 March 2023: Unit: € m Loans Maturity Total Curren
Slide 49: Taxes and other contributions
1st QUARTER 2023 MAY 2023 “Other deferred income” includes €80 m referring to the receipt of a down payment provided by the company Somoil for the purchase of Angolan companies in the upstream business. 14. Taxes and other contributions 14.1. Taxes and Special Participation Tax (SPT) The Group opera
Slide 50: Deferred tax assets and liabilities
1st QUARTER 2023 MAY 2023 As at 31 March 2023, the movements in deferred tax assets and liabilities were as follows: Unit: € m Impact on the Foreign As at 31 March As at 31 December 2022 income Impact on equity exchange rate 2023 statement changes Deferred Taxes – Assets 559 (97) 3 3 468 Adjustments
Slide 51: Post-employment benefits
1st QUARTER 2023 MAY 2023 15. Post-employment benefits On 31 March 2023 and 31 December 2022, the assets of the Pension Funds of Petrogal, S.A. and Sacor Maritima, S.A., valued at fair value, were as follows, in accordance with the information provided by the pension plan management entity: Unit: €
Slide 52: Provisions
1st QUARTER 2023 MAY 2023 16. Provisions During the three-month period ended 31 March 2023, the movements in Provisions were as follows: Unit: € m March 2023 December Decomissioning/ CESE Windfall Other 2022 Total environmental provisions (I and II) tax provisions At the beginning of the period 715
Slide 53: Derivative financial instruments
1st QUARTER 2023 MAY 2023 The accounting impacts of gains and losses on derivative financial instruments on the income statement and comprehensive income as at 31 March 2023 and 2022 are presented below: Unit: € m March 2023 March 2022 Income statement Income statement MTM + Equity Equity MTM Realis
Slide 54: Non-controlling interests
1st QUARTER 2023 MAY 2023 18. Non-controlling interests
Slide 55: Revenue and income
1st QUARTER 2023 MAY 2023 19. Revenue and income The details of revenue and income for the three-month periods ended 31 March 2023 and 31 March 2022 were as follow: Unit: € m Notes March 2023 March 2022 5,469 5,787 Total sales 5,072 5,547 Goods 2,556 3,197 Products 2,516 2,350 Services rendered 74 1
Slide 56: Costs and expenses
1st QUARTER 2023 MAY 2023 20. Costs and expenses The details of costs and expenses, for the three-month periods ended 31 March 2023 and 31 March 2022 were as follow: Unit: € m Notes March 2023 March 2022 Total costs and expenditure: 4,696 5,505 Cost of sales 3,688 4,142 Raw and subsidiary materials
Slide 57: Financial results
1st QUARTER 2023 MAY 2023 21. Financial results The details of financial income and costs for the three-month periods ended 31 March 2023 and 31 March 2022 were as follow: Unit: € m Notes March 2023 March 2022 69 (453) Financial income 105 9 Interest on bank deposits 21 4 Interest and other income f
Slide 58: Related party transactions; Subsequent events
1st QUARTER 2023 MAY 2023 22. Related party transactions The Group had the following transactions with related parties: Unit: € m March 2023 December 2022 Current Non-current Current Non-current Assets: 53 29 53 29 Associates 50 15 48 29 Joint ventures 1 14 3 - Other related entities 2 - 2 - Unit: €
Slide 59: Approval of the financial statements
1st QUARTER 2023 MAY 2023 24. Approval of the financial statements Chairperson _________________________ __________________________ __________________________ Paula Amorim Teresa Abecasis Rui Paulo Gonçalves Vice-chairman and Lead __________________________ __________________________ Independent Dir
Slide 60: Explanation regarding translation
1st QUARTER 2023 MAY 2023 25. Explanation regarding translation These English language financial statements are a translation of the financial statements prepared in Portuguese in accordance with IAS 34 – Interim Financial Reporting, and with the International Financial Reporting Standards adopted b
Slide 61: Definitions
1st QUARTER 2023 MAY 2023 DEFINITIONS
Slide 62: Definitions
1st QUARTER 2023 MAY 2023 9. Definitions Replacement cost (RC) CESE: Contribuição Extraordinária sobre o Sector Energético (Portuguese Extraordinary Energy Sector Contribution) According to this method of valuing inventories, the cost of goods sold is valued at the CFFO: Cash flow from operations co
Slide 63: Definitions (abbreviations)
1st QUARTER 2023 MAY 2023 kbpd: thousands of barrels of oil per day p.p.: percentage point LNG: liquefied natural gas Q: Quarter LTM: last twelve months QoQ: Quarter-on-quarter m: million R&NB: Renewables & New Businesses MIBGAS: Iberian Market of Natural Gas REN: Rede Eléctrica Nacional mbbl: milli
Slide 64: Investor Relations
1st QUARTER 2023 MAY 2023 Website: www.galp.com/corp/en/investors Galp Energia, SGPS, S.A. Otelo Ruivo, Director Contacts: João G. Pereira +351 21 724 08 66 Email: investor.relations@galp.com Investor Relations Teresa Toscano Tommaso Fornaciari Address: Reuters: GALP.LS Bloomberg: GALP PL César Teix