Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2014 Earnings Presentation
26 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Apr 29, 2014
Slide 1: Results First Quarter 2014
29 April 2014 Results FIRST QUARTER 2014 An integrated energy player focused on exploration and production
Slide 2: Disclaimer
Disclaimer RCA figures except otherwise noted. 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 Energia” or the “Company”) and may be amended and supp
Slide 3: Key highlights
Key highlights Strategy execution update Business overview Final remarks Appendix 3 First quarter 2014 results
Slide 4: Key highlights
Key highlights ▪ Lula/Iracema project being executed according to plan, with FPSO #2 on track to reach full capacity during 4Q14 ▪ Appraisal activities underway to optimise Iara development plan ▪ First oil accumulation tested in Potiguar basin ▪ 1Q14 Ebitda of €265 m, up 5% with higher production i
Slide 5: Strategy execution update
Key highlights Strategy execution update Business overview Final remarks Appendix 5 First quarter 2014 results
Slide 6: E&P: FPSO Cidade Paraty (#2) expected to reach full capacity during 4Q14
E&P: FPSO Cidade Paraty (#2) expected to reach full capacity during 4Q14 Lula NE milestones Schedule Status Delivery of FPSO Cidade Paraty May-13 Start of production Jun-13 Connection of injector well Aug-13 Connection of producer well1 Jan-14 Connection to gas export pipeline Jan-14 Installation of
Slide 7: E&P: FPSO Cidade Mangaratiba (#3) on track to first oil by 4Q14
E&P: FPSO Cidade Mangaratiba (#3) on track to first oil by 4Q14 FPSO Cidade Mangaratiba (#3) Iracema South project development wells 8 8 5 5 Drilled Planned Drilled Planned Producers Injectors Topsides integration works progressing with Development wells will be connected to the execution rate of c.
Slide 8: E&P: Iara appraisal campaign underway to de-risk development
E&P: Iara appraisal campaign underway to de-risk development Total infrastructure net installed Iara: structural map capacity (kboepd) 375 Pre-sanctioned Sanctioned 300 Operating 225 Iara 150 75 0 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E Iara first oil expected in 2017, with two FPSO EWT
Slide 9: E&P: FID made on Block 32 Kaombo in Angola
E&P: FID made on Block 32 Kaombo in Angola Total infrastructure net installed Kaombo development plan capacity (kboepd) 375 Pre-sanctioned Sanctioned 300 Operating 225 Block 32 150 75 0 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E First oil expected by 2017 and Two FPSO with a combined capaci
Slide 10: E&P: Seven to nine E&A wells expected to be drilled in 2014
E&P: Seven to nine E&A wells expected to be drilled in 2014 Galp Energia 2014 drilling schedule Spud Duration Well Area Target Interest E/A1 date (# days) status 2 Brazil BM-S-8 Carcará (extension) 14% A 4Q14 120 - BM-S-24 Jupiter SW 20% A 3Q14 120 - BM-S-24 Bracuhy NE 20% A 4Q14 120 - Mozambique Ro
Slide 11: E&P: Progress on 2014 exploration programme
E&P: Progress on 2014 exploration programme Potiguar basin in Brazil Tarfaya Offshore Area in Morocco Trident prospect porosity DST revealed good reservoir quality in terms Jack-up rig Ralph Coffman already contracted of porosity and permeability and to start drilling by June 11 First quarter 2014 r
Slide 12: R&M: Challenging environment
R&M: Challenging environment Benchmark refining margin Iberian oil market evolution ($/bbl) (YoY change) 12.0 1Q13 2Q13 3Q13 4Q13 1Q14 10.0 1% 1% 8.0 6.0 -2% 4.0 2.0 -6% 0.0 -2.0 -4.0 -12% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 10y range Galp Energia benchmark margin Evaluating options to f
Slide 13: G&P: Sustaining LNG supply and trading activity
G&P: Sustaining LNG supply and trading activity Iberian NG sales LNG trading sales (bcm) (bcm) 4.6 4.4 4.0 4.1 3.0 2.2 1.0 1.1 0.7 0.5 2010 2011 2012 2013 1Q14 2010 2011 2012 2013 1Q14 Material demand in Iberia, despite lower Leveraging LNG trading volumes on consumption from power generation plants
Slide 14: Business overview
Key highlights Strategy execution update Business overview Final remarks Appendix 14 First quarter 2014 results
Slide 15: 1Q14 Ebitda up 5% YoY driven by higher E&P production and LNG activity
1Q14 Ebitda up 5% YoY driven by higher E&P production and LNG activity Profit & Loss (€ m) ▪ Ebitda benefited from higher 1Q14 1Q13 YoY production in Brazil and strong Turnover 4,125 4,471 (8%) LNG supply and trading activity, Ebitda 265 253 +5% compensating weak R&M performance E&P 104 92 14% R&M 3
Slide 16: Maintaining a robust balance sheet
Maintaining a robust balance sheet Balance sheet (€ m)1 ▪ Sines outage negatively impacted working capital Mar.2014 Dec.2013 Mar - Dec Fixed and LT assets 7,014 6,883 +131 ▪ Net debt stable at €2.3 bn despite working capital and fixed Working capital 1,405 1,294 +111 investment in the period Loan to
Slide 17: Capex mainly allocated to development of Lula/Iracema project
Capex mainly allocated to development of Lula/Iracema project Capital expenditure (€ m) ▪ Development activities in BM-S-11 accounted for c.65% of E&P capex, including FPSO and 197 189 development wells G&P ▪ Exploration capex in 1Q14 mainly R&M E&P – D&P allocated to Pitú well in Potiguar E&P – E&A
Slide 18: Successfully aligning debt maturities with cash flow profile
Sucessfully aligning debt maturities with cash flow profile Debt reimbursement profile1 (€ m) ▪ Gross debt1 of €3.5 bn with an 800 average maturity of 3.4 years 600 400 ▪ 50% of total gross debt expected to be reimbursed from 2018 200 onwards 0 2014 2015 2016 2017 2018 2019 2020+ Debt structure1 ▪ A
Slide 19: Short term outlook
Short term outlook ▪ 2Q14 WI production expected at c.26 kboepd, impacted by the end of two EWT in Lula field in April ▪ Volumes of crude processed in 2Q14 to be impacted by the ongoing Sines refinery turnaround ▪ Iberian oil products volumes expected to be up YoY, following the anticipated recovery
Slide 20: Final remarks
Key highlights Strategy execution update Business overview Final remarks Appendix 20 First quarter 2014 results
Slide 21: Final remarks
Final remarks ▪ Lula/Iracema project on time and on budget with production ramp-up expected in 2014 ▪ Appraisal activities underway to de-risk development of pre-sanctioned projects, namely Iara ▪ First operated offshore well in Morocco and Dugongo-1 well in Mozambique to be spud in 2Q14 ▪ Downstrea
Slide 22: Appendix
Key highlights Strategy execution update Business overview Final remarks Appendix 22 First quarter 2014 results
Slide 23: Production increased 19% YoY driven by Lula NE and EWT in Lula
Production increased 19% YoY driven by Lula NE and EWT in Lula Main E&P data ▪ Brazil production increased 5.4 1Q14 1Q13 YoY kboepd YoY, following start-up of FPSO #2 and two EWT in Lula Working interest production kboepd 28.1 23.5 +19% field Oil production kbopd 26.9 21.1 +28% Net entitlement produ
Slide 24: R&M earnings impacted by continued negative refining environment
R&M earnings impacted by continued negative refining environment Main R&M data ▪ Sines refinery general outage, 1Q14 1Q13 YoY started in March and impacted crude processed and cash cost Galp Energia refining margin USD/bbl 1.1 1.8 (39%) per barrel processed Refining cash cost USD/bbl 3.6 2.6 +37% Cr
Slide 25: LNG trading volumes reached over 1 bcm driving Ebitda increase
LNG trading volumes reached over 1 bcm driving Ebitda increase Main G&P data ▪ LNG trading volumes supported 1Q14 1Q13 YoY by flexible sourcing mix, including new supply contracts and spot NG supply total sales volumes mm3 2,078 1,721 +21% market Sales to direct clients mm3 1,011 1,075 (6%) Electric
Slide 26: For further information on Galp Energia
Investor Relations team Tiago Villas-Boas, Head Catarina Aguiar Branco Cátia Lopes Maria Borrega Pedro Pinto +351 21 724 08 66 Investor.relations@galpenergia.com For further information on Galp Energia, please go to: www.galpenergia.com Results & presentation weblink www.galpenergia.com/en/investido