Galp Energia, Sgps S.a. Class B · EURONEXT:GALP

Galp Energia, Sgps S.a. Class B — Galp Energia — Q4 2015 Earnings Presentation

24 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Feb 8, 2016

  1. Slide 1: Results Fourth Quarter 2015

    0 February 8, 2016 RESULTS FOURTH QUARTER 2015 An integrated energy player focused on exploration and production FOURTH QUARTER 2015 RESULTS

  2. Slide 2: Disclaimer

    DISCLAIMER 1 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 su

  3. Slide 3: Q4 2015 Highlights

    Q4 2015 HIGHLIGHTS 2  Q4 Ebitda of €309 m, with integrated portfolio supporting FY EBITDA of €1.564 bn  Q4 working interest production increased to 52.1 kboepd given contribution from FPSO #3 and #4 in Brazil and the start-up of Lianzi in Angola  Sépia East DoC submitted and Carcará appraisal act

  4. Slide 4: 2015: Performance Above Expectations

    2015: PERFORMANCE ABOVE EXPECTATIONS 3 Key Indicators Guidance - CMD 2015 Actual Ebitda RCA €1.1 bn - €1.3 bn €1.56 bn Capex €1.3 bn - €1.5 bn €1.28 bn Production growth (WI) 30%-35% 50% Refining utilisation rate (%) 80 – 85 85 Oil sales to direct clients (mton) 9.5 – 10 9.1 NG/LNG sales (bcm) 5-7 7

  5. Slide 5: Agenda

    AGENDA 4 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FOURTH QUARTER 2015 RESULTS

  6. Slide 6: 4Q15: Lower Prices, Higher Volumes

    4Q15: LOWER PRICES, HIGHER VOLUMES 5 Refining margins vs Brent price Iberian Market Growth ($/bbl) (kton, mmcm)  Crude oversupply pushed oil price to an 11-year low  Iberian oil market up 2.4%, supported by low prices and during 4Q15 economic recovery  Refining margins impacted by middle distilla

  7. Slide 7: Lula/Iracema: Productivity Supporting Iracema Units Ramp-up

    LULA/IRACEMA: PRODUCTIVITY SUPPORTING IRACEMA UNITS RAMP-UP 6 FPSO CIDADE DE MANGARATIBA (#3) FPSO CIDADE DE ITAGUAÍ (#4) (150 kbopd) (150 kbopd)  Full ramp-up achieved in 13 months, ahead of plan  Started operations in July 2015 and reached c.90 kbopd, with three producer and three injector wells

  8. Slide 8: Lula/Iracema: FPSO #5 Imminent Start of Production in Lula Alto

    LULA/IRACEMA: FPSO #5 IMMINENT START OF PRODUCTION IN LULA ALTO 7 FPSO CIDADE DE MARICÁ (#5) (150 kbopd)  Total of 10 wells already drilled in the Lula Alto area, with  Unit to reach full capacity during 2017 the first producer well currently being connected FOURTH QUARTER 2015 RESULTS

  9. Slide 9: Lula/Iracema: FPSO #6 on Schedule

    LULA/IRACEMA: FPSO #6 ON SCHEDULE 8 FPSO CIDADE DE SAQUAREMA (#6) (150 kbopd)  FPSO at Brasa shipyard in Brazil for final integration works  Expected to be deployed in Lula Central by mid-2016 FOURTH QUARTER 2015 RESULTS

  10. Slide 10: Continuing to De-risk Other Projects in Brazil

    CONTINUING TO DE-RISK OTHER PROJECTS IN BRAZIL 9 CARCARÁ BM-S-8 BM-S-24 POTIGUAR BASIN  Carcará North and Carcará NW  Sépia East DoC submitted in  Pitu North well confirmed the confirmed the discovery of light oil November 2015 extension of Pitu discovery and the extension of the discovery  Sépi

  11. Slide 11: Advancing on African Development Projects

    ADVANCING ON AFRICAN DEVELOPMENT PROJECTS 10 ANGOLA MOZAMBIQUE  Lianzi started production in October 2015  Focus on developing a robust and competitive FLNG solution for Coral  Development drilling campaign ongoing in Kaombo  Mamba Unitisation Agreement with Area 1 signed in  Focus on cost redu

  12. Slide 12: Downstream and Gas: Strong Performance

    DOWNSTREAM AND GAS: STRONG PERFORMANCE 11 R&M G&P  Refining system high availability during 2015  Stable sales to direct clients benefiting from higher electrical segment demand  Business performance benefitted from market dynamics and cost optimisation  Robust trading activity, supported by str

  13. Slide 13: Agenda

    AGENDA 12 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FOURTH QUARTER 2015 RESULTS

  14. Slide 14: Q4 EBITDA of €309 m

    Q4 EBITDA OF €309 M 13 Profit & Loss RCA (€ m) 4Q14 3Q15 4Q15 QoQ YoY 12M15 YoY  Resilient operating results despite challenging Turnover 4,470 3,906 3,435 (12%) (23%) 15,517 (13%) environment Ebitda 399 411 309 (25%) (22%) 1,564 19% E&P 102 89 53 (41%) (48%) 356 (20%)  Upstream results impacted b

  15. Slide 15: 4Q15 Capex of €431 m Mostly Allocated to Upstream

    4Q15 CAPEX OF €431 M1 MOSTLY ALLOCATED TO UPSTREAM 14 Capital Expenditure (€ m)  E&P accounted for 75% of Group capex, of 431 which development activities accounted for G&P 385 R&M 86% 256  Brazil represented c.70% of total Upstream capex due to Lula/Iracema development E&P execution (D&P)  Downs

  16. Slide 16: Maintaining Solid Capital Structure

    MAINTAINING SOLID CAPITAL STRUCTURE 15 Balance Sheet (€ m)1 Dec.2015 Set.2015 Dec.2014 Dec-Set Dec-Dec  Working capital positively impacted by lower inventories and client receivables Fixed and LT assets 7,877 7,638 7,599 239 278 Work in progress 2,077 2,016 1,768 61 309  Net debt decreased €98 m

  17. Slide 17: Agenda

    AGENDA 16 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FOURTH QUARTER 2015 RESULTS

  18. Slide 18: Concluding Remarks

    CONCLUDING REMARKS 17  Maintaining the focus on Lula/Iracema project execution:  FPSO #1, #2 and #3 producing steadily at plateau  FPSO #4 in production ramp-up, with the 4th producer well expected by 1Q16  FPSO #5 at Lula Alto with imminent first oil  FPSO #6 to be deployed by mid-2016  Produ

  19. Slide 19: Save the date: Capital Markets Day 2016

  20. Slide 20: Agenda

    AGENDA 19 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FOURTH QUARTER 2015 RESULTS

  21. Slide 21: E&P: Net Entitlement Production Up 48% YoY

    E&P: NET ENTITLEMENT PRODUCTION UP 48% YOY 20 Main E&P data 4Q14 3Q15 4Q15 QoQ YoY 12M15 YoY  Higher production in Brazil QoQ, mainly due to FPSO #3 and #4 Working interest production kboepd 36.3 45.7 52.1 14% 43% 45.8 50% Oil production kbopd 34.0 42.2 48.9 16% 44% 42.5 48%  Angola NE increased 1

  22. Slide 22: R&M: Resilient Ebitda Supported by Refining and Steady Marketing Volumes

    R&M: RESILIENT EBITDA SUPPORTED BY REFINING AND STEADY MARKETING VOLUMES21 Main R&M data 4Q14 3Q15 4Q15 QoQ YoY 12M15 YoY  Q4 premium to benchmark of $0.1/boe impacted by planned outages for maintenance Galp Energia refining margin USD/boe 4.7 6.7 4.1 (38%) (12%) 6.0 n.m. in some units 1 Refining c

  23. Slide 23: G&P: Solid Contribution from NG Business

    G&P: SOLID CONTRIBUTION FROM NG BUSINESS 22 Main G&P data 4Q14 3Q15 4Q15 QoQ YoY 12M15 YoY  Trading volumes decreased YoY with fewer opportunities in the international market NG supply total sales volumes mm3 1,885 1,909 1,692 (11%) (10%) 7,665 3% 3 Sales to direct clients mm 968 933 992 6% 2% 3,84

  24. Slide 24: Investor Relations team

    Investor Relations team Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes Joana Pereira Results & presentation weblink : João Pereira www.galpenergia.com/en/investidor/Relatorios-e- Pedro Pinto resultados/resultados-trimestrais +351 21 724 08 66 For further information on Galp Energia, please go to: Inv

Galp Energia — Q4 2015 Earnings Presentation on 6ix