Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2020 Earnings Presentation
18 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Apr 27, 2020
Slide 1: 1Q20 Results
1Q20 RESULTS April 27 2020 An integrated energy player developing profitable 1 and sustainable businesses
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholder returns; liquidity; capital and operating expenditures; performance levels and project plans, timing, and outcomes; pr
Slide 3: Recent Developments and Outlook
01 RECENT DEVELOPMENTS AND OUTLOOK Carlos Gomes da Silva, CEO 3
Slide 4: Deteriorating Market Conditions Caused by COVID-19 and Lower Commodity Prices
DETERIORATING MARKET CONDITIONS CAUSED BY COVID-19 AND LOWER COMMODITY PRICES Brent Price ($/bbl) Oil products cracks ($/ton) Iberian demand (YoY, %) 200 80 30% 150 60 0% 100 40 50 -30% 20 0 0 -60% -50 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 Diesel crack Future diesel crack Oil products Power B
Slide 5: Ensuring a Timely Response to Unprecedented Conditions
ENSURING A TIMELY RESPONSE TO UNPRECEDENTED CONDITIONS Protecting People’s safety and Assessing operational Preparing lockdown exit health flexibility strategies Ensuring business continuity Adapting activities to current Define businesses’ adaptation and asset integrity and expected macro condition
Slide 6: Prompt Mitigation Measures to Increase Resilience and Protect Financial Strength
PROMPT MITIGATION MEASURES TO INCREASE RESILIENCE AND PROTECT FINANCIAL STRENGTH Context Response Sharp demand decrease Adapted business and operations >€500 m Low commodity price High impact short term cash Annual Capex + Opex reduction environment saving initiatives Economic downturn Portfolio man
Slide 7: Capital Allocation Guidelines
CAPITAL ALLOCATION GUIDELINES ADJUSTING THE SHORT TERM WHILE KEEPING LONG TERM STRATEGY AMBITION Investment Strategy Financial Discipline Shareholder Distribution High flexibility to adjust Enhancing liquidity and 2019 dividend capital spending protecting financial position €0.5 – 0.7 bn €2.6 bn €0.
Slide 8: Short Term Outlook
SHORT TERM OUTLOOK EXPECTED MACRO VOLATILITY AND CURRENT COVID-19 TO IMPACT 2Q20 PERFORMANCE Renewables & New Upstream Refining & Midstream Commercial Businesses Adapting operations and Low demand and high Commercial activities Closing of solar PV maintenance activities inventory levels leading to i
Slide 9: 1Q20 Results
02 1Q20 RESULTS Filipe Silva, CFO 9
Slide 10: Group EBITDA of €469 m
GROUP EBITDA OF €469 M REFLECTING MACRO ENVIRONMENT DETERIORATION €m 1Q19 4Q19 1Q20 Upstream impacted by lower WI production QoQ, RCA Ebitda 494 653 469 due to planned maintenance, lower realisations and underlifting adjustments Upstream 374 500 286 Refining & Midstream 27 52 90 Refining & Midstream
Slide 11: Cash Generation
CASH GENERATION INVENTORY EFFECT DRIVING WORKING CAPITAL RELEASE CFFO of €244 m FCF 1Q20 (€m) IFRS Ebitda impacted by inventory effect, partially compensated by working capital release. Tax payments related to previous periods 289 Inventory effect Investment and financial cash flow Net capex of €211
Slide 12: Solid Financial Position
SOLID FINANCIAL POSITION AS A BASIS TO HANDLE UNCERTAINTY €m 31 Mar., 31 Dec., 31 Mar., 2019 2019 2020 Debt Net fixed assets 7,380 7,358 7,439 Stable debt position and extending average debt Rights of use (IFRS 16) 1,209 1,167 1,171 maturity, following a €200 m reduction of 2020 redemptions Working
Slide 13: Appendix
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Slide 14: 1Q20 Upstream
1Q20 UPSTREAM CONTRIBUTION IMPACTED BY OIL PRICE ENVIRONMENT 1Q19 4Q19 1Q20 Working interest production kboepd 112.6 136.9 131.4 WI production slightly down QoQ, with the Oil production kbpd 99.5 121.8 118.1 continued ramp-up of FPSOs Lula North and Berbigão/Sururu offset by planned stoppages Net en
Slide 15: 1Q20 Refining & Midstream
1Q20 REFINING & MIDSTREAM EBITDA REFLECTING MACRO ENVIRONMENT VOLATILITY 1Q19 4Q19 1Q20 Raw materials processed mmboe 22.8 26.5 26.8 Refining performance impacted by the harsh Galp refining margin USD/boe 2.3 3.3 1.9 macro environment and planned maintenance activities performed in Sines’ HCC unit O
Slide 16: 1Q20 Commercial
1Q20 COMMERCIAL RESILIENT CONTRIBUTION DESPITE DEMAND WEAKNESS 1Q19 4Q19 1Q20 Commercial sales to clients Lower oil and gas sales to direct clients, already Oil products mton 2.1 2.0 1.8 reflecting the impact from Iberian lockdowns during March Natural gas GWh 8,863 7,762 6,728 Electricity GWh 841 8
Slide 17: Debt Indicators
DEBT INDICATORS Debt indicators Debt reimbursement (€m) 31 Dec., 31 Mar., €m 2019 2020 1,400 Cash and cash equivalents 1,460 1,485 1,200 Undrawn credit facilities 1,163 1,164 1,000 Gross debt 2,895 2,981 800 Net debt 1,435 1,496 600 Operating leases (IFRS 16) 1,223 1,232 400 Net debt to RCA Ebitda 0
Slide 18: www.galp.com investor.relations@galp.com
www.galp.com investor.relations@galp.com 18