Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q3 2010 Earnings Presentation
16 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Oct 28, 2010
Slide 1: Results: Third Quarter and Nine Months 2010
Results THIRD QUARTER AND NINE MONTHS 2010 October 28 2010 Extending success into new challenges
Slide 2: Third quarter and nine months results highlights
Third quarter and nine months results highlights Business overview Financial overview Short‐term outlook 2 Third Quarter and Nine Months 2010 results
Slide 3: Third Quarter and Nine Months Results Highlights
Third Quarter and Nine Months Results Highlights Exploration & Increase in production and crude price impacting EBITDA YoY Production Refining & Galp Energia’s refining margin increased by $1.5/bbl YoY in 3Q10 Marketing Gas & Natural gas supply volumes stable YoY Power Financials 3Q10 net profit RCA
Slide 4: Business overview
Third quarter and nine months results highlights Business overview Financial overview Short‐term outlook 4 Third Quarter and Nine Months 2010 results
Slide 5: Increase in production and crude price impacting EBITDA YoY
Increase in production and crude price impacting EBITDA YoY Main E&P data ▪ Tupi EWT and CPT Tômbua‐ 3Q10 3Q09 YoY QoQ 9M10 9M09 YoY ‐Lândana projects drove Working interest production kbbl/d 19.6 14.3 +37% (1%) 19.3 13.6 +41% production growth YoY Net entitlement production kbbl/d 9.5 8.9 +7% (12%)
Slide 6: Galp Energia's refining margin increased by $1.5/bbl YoY in 3Q10
Galp Energia’s refining margin increased by $1.5/bbl YoY in 3Q10 Main R&M data ▪ 3Q10 YoY increase in 3Q10 3Q09 YoY QoQ 9M10 9M09 YoY premium over Galp Energia refining margin $/bbl 2.1 0.6 +265% (38%) 2.7 1.5 +85% benchmark due to Spread over benchmark $/bbl 1.6 0.4 +342% (15%) 1.6 0.1 n.m. recover
Slide 7: Natural gas supply volumes stable YoY
Natural gas supply volumes stable YoY Main G&P data ▪ Stable YoY NG supply 3Q10 3Q09 YoY QoQ 9M10 9M09 YoY sales to electrical market NG supply total sales volumes M m3 1,302 1,293 +1% +18% 3,586 3,482 +3% despite higher hydro Electrical M m3 613 600 +2% +21% 1,474 1,526 (3%) Industrial M m3 425 473
Slide 8: Financial overview
Third quarter and nine months results highlights Business overview Financial overview Short‐term outlook 8 Third Quarter and Nine Months 2010 results
Slide 9: 3Q10 net profit RCA of €93 Mln, up 18% YoY
3Q10 net profit RCA of €93 Mln, up 18% YoY Profit & Loss (€Mln) ▪ Positive 3Q10 operating performance in line 3Q10 3Q09 YoY QoQ 9M10 9M09 YoY with the first half Turnover 3,590 3,257 +10% +0% 10,460 9,050 +16% trend EBITDA 223 193 +15% (20%) 677 480 +41% E&P 37 28 +31% (16%) 130 73 +78% R&M 126 106
Slide 10: Transformational capex execution according to plan
Transformational capex execution according to plan Capital expenditure 1 (€Mln) ▪ Tupi continued to be the G&P R&M E&P main driver of E&P’s capex 864 ▪ Upgrade refining project 435 capex accelerated in 385 3Q10 171 ▪ Natural gas distribution infrastructure 9M09 9M10 3Q09 3Q10 responsible for majorit
Slide 11: Net debt increase driven by capex execution in 3Q10
Net debt increase driven by capex execution in 3Q10 Consolidated balance sheet (€Mln) ▪ Increase in work in Sep. 2010 Jun. 2010 Sep ‐ Jun Dec. 2009 Sep ‐ Dec progress, which reached Fixed assets 5,122 4,835 +287 4,379 +743 €1.7 Bln, not yet Work in progress 1,684 1,360 +324 1,015 +669 generating ret
Slide 12: Additional facilities of €1.01 Bln
Additional facilities of €1.01 Bln M/L‐term debt reimbursement profile (€Mln) ▪ No major debt reimbursements before 600 2012 400 200 0 ▪ Net debt totalled €2.7 Bln 2010 2011 2012 2013 +2014 Debt structure as of September 2010 ▪ Average interest rate of 3.4% 60% 75% 40% 25% ▪ 60% of current additiona
Slide 13: Short-term outlook
Third quarter and nine months results highlights Business overview Financial overview Short‐term outlook 13 Third Quarter and Nine Months 2010 results
Slide 14: Short-term Outlook
Short‐term Outlook Exploration & 4Q10 working interest production boosted by Tupi pilot project start up Production Refining & Refining margins should be positively impacted by recent supply disruption Marketing Gas & 4Q10 NG supply volumes to increase on a quarterly basis Power Financials Maintaini
Slide 15: Disclaimer
Disclaimer RCA figures except otherwise noted. 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,” "co
Slide 16: Results: Investor Relations contact
Results THIRD QUARTER AND NINE MONTHS 2010 October 28 2010 Extending success into new challenges TIAGO VILLAS‐BOAS tiagovb@galpenergia.com www.galpenergia.com INVESTOR RELATIONS OFFICER T: +351 21 724 08 66 F: +351 21 724 29 65