Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Investor Presentation (February 2010)
24 slides from Galp Energia, Sgps S.a. Class B's investor presentation, Feb 25, 2010
Slide 1: Strategy Update 2010-2014
STRATEGY UPDATE 2010-2014 February 25 2010 Extending success into new challenges Investor Relations
Slide 2: Towards a fully integrated energy company
TOWARDS A FULLY INTEGRATED ENERGY COMPANY Strengthening Strengthening our our integrated integrated energy energy company company position position Assets in place Funding secured Growth Growth in in upstream upstream supported supported by by a a solid solid Iberian Iberian downstream downstream bu
Slide 3: Upstream Growth
UPSTREAM GROWTH Strategy update 2010 - 2014 Investor Relations
Slide 4: Strong resource addition in 2009
STRONG RESOURCE ADDITION IN 2009 1 Galp Energia resource base Bln boe Contingent resources Brazil (3C) Level of contingent Contingent resources Angola (3C) resources increased 45% Reserves proved and probable (2P) YoY, as exploration activity moves ahead + 45% 3.1 Brazil exploration activity 2.1
Slide 5: Ramp up production from Tômbua-Lândana's CPT
RAMP UP PRODUCTION FROM TÔMBUA-LÂNDANA’S CPT Tômbua-Lândana CPT ▪ Recoverable volumes of 32 Mln bbl net to Galp Energia ▪ Expected production of 90 kbpd in 2010 ▪ Peak production of 100 kbpd to be reached by 2011 ▪ 3rd producing field in block 14, where Galp Energia holds a 9% stake 5 Investor Relat
Slide 6: Tupi's pilot project development on track
TUPI’S PILOT PROJECT DEVELOPMENT ON TRACK ▪ Gross recoverable FPSO BW Cidade São Vicente volumes of 5-8 bln boe ▪ The EWT has produced more than 3.5 mln boe with well flow rate limited to 20 kbopd ▪ Total Tupi pilot capex of $3,7 bln (excluding FPSO lease and including pipeline cost of $800 mln) ▪ T
Slide 7: Full Tupi area development major milestones
FULL TUPI AREA DEVELOPMENT MAJOR MILESTONES FPSO BW Cidade São Vicente ▪ Iracema and Tupi NE to further support the development of Tupi field ▪ Second module expected in Tupi area in YE2013 with a 120 kbopd FPSO ▪ Up to 8-10 FPSO modules for full Tupi area development 7 Investor Relations 7 Strategy
Slide 8: Iara's appraisal works on going
IARA’S APPRAISAL WORKS ON GOING Seismic campaign ▪ Gross recoverable volumes of 3-4 bln boe ▪ One appraisal well schedule for 2010, followed by a DST in 2011 ▪ EWT on IARA planned for 2013 8 Investor Relations 8 Strategy Update 2010-2014 Investor Relations
Slide 9: Key exploration works in pre-salt Santos basin
KEY EXPLORATION WORKS IN PRE-SALT SANTOS BASIN Santos basin ▪ Three major discoveries: Júpiter (BM-S-24), Caramba (BM-S-21) and Bem-te-vi (BM-S-8) ▪ One exploration well to be drilled in each block in 2010 Bem-te-vi Júpiter ▪ More appraisal works to BM-S-8 BM-S-24 Galp Energia, 20% be executed after
Slide 10: Espirito Santo basin key well in 2010
ESPIRITO SANTO BASIN KEY WELL IN 2010 Location ▪ Galp Energia share of 20% in BM-ES-31 ▪ Evaluate prospective volumes in place ▪ Ambrosia post salt prospect currently being drilled ▪ Additional prospects in deeper stratigraphic units 10 Investor Relations 10 Strategy Update 2010-2014 Investor Relati
Slide 11: Intensive exploration/appraisal drilling program in 2010
INTENSIVE EXPLORATION/APPRAISAL DRILLING PROGRAM IN 2010 Brazil 2010 Santos BM-S-11 6A BM-S-8 1E Angola 2010 BM-S-21 1E BM-S-24 1E Block 14 2A Shallow Blocks 2E Block 32 2A Espírito Santo Angola LNG II 1E BM-ES-31 1E East Timor 2010 Block C 1E 11 Investor Relations 11 Strategy Update 2010-2014 E – E
Slide 12: Exploratory drilling to de-risk prospective resources
EXPLORATORY DRILLING TO DE-RISK PROSPECTIVE RESOURCES Galp Energia total resources Prospective resources (unrisked) Bln boe Contingent resources Brazil (3C) Prospective resource base Contingent resources Angola (3C) of 1.8 bln boe in 2009 Reserves proved and probable (2P) 4.8 4.1 Strong explorat
Slide 13: Solid Downstream Business in Iberia
SOLID DOWNSTREAM BUSINESS IN IBERIA Strategy update 2010 - 2014 Investor Relations
Slide 14: Upgrade project on schedule
UPGRADE PROJECT ON SCHEDULE Refining incremental EBITDA Porto conversion project: Energy efficiency Conversion project End of construction 2Q11 “as is” Steady production 3Q11 Sines conversion project: End of construction 3Q11 Incremental EBITDA Steady production 4Q11 Energy efficiency
Slide 15: Marketing business benefiting from Iberian footprint
MARKETING BUSINESS BENEFITING FROM IBERIAN FOOTPRINT Stability Synergies Growth Refining coverage by Network effects and Optimized marketing ratio near unlocked synergies distribution the 100% target above initial network to benefit expectations from organic growth in Spain Diversification i
Slide 16: Well positioned to capture NG market growth in Iberia
WELL POSITIONED TO CAPTURE NG MARKET GROWTH IN IBERIA Natural gas supply drivers Take advantage of Portuguese Increase in liberalized volumes natural gas market growth Volume Expect end of regulated tariff growth Volumes boosted by Galp’s in Portuguese industrial power projects Margin segmen
Slide 17: NG infrastructure with stable cashflow
NG INFRASTRUCUTURE WITH STABLE CASHFLOW Natural gas regulated asset base Bln € RAB increasing in line 0.2 – 0.3 with distribution 1.2 network development Stable cashflow generation well above €100 mln per year RAB Capex YE2009 2010 - 2014 International pipelines with a stable annual earnings c
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS Strategy update 2010 - 2014 Investor Relations
Slide 19: Capex profile to change from 2012 onwards
CAPEX PROFILE TO CHANGE FROM 2012 ONWARDS CAPEX 2010 - 2011 CAPEX 2012 - 2014 E&P E&P R&M R&M G&P G&P ▪ Downstream business ▪ Upstream will take its key responsible for major capex role on capex from 2012 until 2011 onwards Total capex for the 2010-14 period of €4 bln-€4.5 bln 19 Investor Relations
Slide 20: Growth in upstream supported by a solid Iberian downstream business
GROWTH IN UPSTREAM SUPPORTED BY A SOLID IBERIAN DOWNSTREAM BUSINESS R&M R&M assets assets fit fit EBITDA growth driven by Iberian synergies, Upgrade project, Tômbua-Lândana, Tupi and further upstream projects EBITDA Capex in Upgrade, Tupi and Capex focused in upstream growth Tômbua-Lândana projects
Slide 21: Funding in place for 2010-11 period
FUNDING IN PLACE FOR 2010-11 PERIOD Funding position 2010-11 ▪ Liquidity in place of €1.7 bln as of YE2009 Debt Cash flow1 repayment ▪ Additional flexibility from potential sale of natural gas distribution assets Liquidity Capex ▪ Commitment to a trustable capital structure Sources Uses Illustrative
Slide 22: Galp Energia's key strengths
GALP ENERGIA’S KEY STRENGHTS MOST MOST LEVERAGED LEVERAGED PLAYER PLAYER TO TO PRE-SALT PRE-SALT IN IN BRAZIL BRAZIL Attractive project pipeline Strong E&P portfolio with upside STRONG STRONG IBERIAN IBERIAN Oil Oil & & GAS GAS DOWNSTREAM DOWNSTREAM BUSINESS BUSINESS Upgrade project 2nd and
Slide 23: Disclaimer
DISCLAIMER Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” "continue," “should” and similar expres
Slide 24: Strategy Update 2010-2014
STRATEGY UPDATE 2010-2014 FEBRUARY 25 2010 Tiago Villas-Boas Investor Relations Officer tiagovb@galpenergia.com T: +351 21 724 08 66 Extending success into new challenges www.galpenergia.com F: +351 21 724 29 65