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

Galp Energia, Sgps S.a. Class B — Q1 2017 Earnings Presentation

17 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, May 2, 2017

  1. Slide 1: Results First quarter 2017

    Results First quarter 2017 May 2, 2017 Third quarter 2016 results

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 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” or the “Company”) and may be amended and supplemented, but may not be relied

  3. Slide 3: 1Q17 highlights

    1Q17 highlights 3  1Q17 Ebitda of €419 m, up 43% YoY on the back of better performance in E&P and R&M  Upstream benefiting from higher oil prices and production ramp-up in Brazil, despite FPSO #1 and FPSO #2 maintenance during the quarter  Strong R&M results reflecting higher refining margins YoY

  4. Slide 4: Agenda

    Agenda 4 Execution Update Financial Overview Appendix First quarter 2017 results

  5. Slide 5: 1Q17: OPEC cuts support oil price above $50/bbl

    1Q17: OPEC cuts support oil price above $50/bbl 5 Brent price vs. Refining margin ($/bbl) Iberian market evolution (kton, mmcm) 60 6.0 1,500 50 1,000 4.0 40 500 2.0 30 0 20 0.0 -500 1Q16 2Q16 3Q16 4Q16 1Q17 1Q15 2015 1Q16 2016 1Q17 1Q17 Brent Benchmark refining margin (RHS) Oil Market, YoY NG Market

  6. Slide 6: Consistent growth with WI production of 88 kboepd

    Consistent growth with WI production of 88 kboepd 6 Brazil Angola  Production growth sustained by the ramp-up of  Declining WI production in blocks 14/14k due to the FPSOs #5 and #6, which more than offset natural decline of the fields maintenance in units #1 and #2  Ongoing drilling campaign in

  7. Slide 7: Downstream businesses to maintain resilient contribution

    Downstream businesses to maintain resilient contribution 7 R&M G&P  Resilient refining results, with realised margin of  Natural gas activity impacted by sourcing constraints $5.1/boe also benefiting from sourcing opportunities and lower LNG trading contribution  Solid marketing performance, supp

  8. Slide 8: Agenda

    Agenda 8 Execution Update Financial Overview Appendix First quarter 2017 results

  9. Slide 9: Q1 Ebitda of €419 m, up 6% QoQ and 43% YoY

    Q1 Ebitda of €419 m, up 6% QoQ and 43% YoY 9 Profit & Loss RCA (€m)  E&P Ebitda to have increased QoQ, excluding 1Q16 4Q16 1Q17 one-off events from previous quarter Turnover 2,822 3,547 3,844 Ebitda 293 396 419  Downstream supported by resilient refining E&P 48 232 204 margins and robust marketing

  10. Slide 10: Capex of €227 m, mostly allocated to upstream development

    Capex of €227 m, mostly allocated to upstream development 10 Capital Expenditure (€m)  Over 90% of total investment allocated to E&P, with Brazil and Angola developments 343 344 accounting, respectively, for 68% and 15% of overall expenditure in the quarter 227  Downstream capex of c.€18 m 1Q16 4Q

  11. Slide 11: CFO contribution supporting investment cycle

    CFO contribution supporting investment cycle 11 Change in net debt (€m) 1Q16 4Q16 1Q17  Working capital increased €203 m in the quarter, driven by a temporary increase in Ebit + DD&A 158 481 480 inventories Dividends from Associates - 26 - Change in Working Capital 141 51 (203)  Net debt stable de

  12. Slide 12: Maintaining a solid financial position

    Maintaining a solid financial position 12 Balance Sheet (€m)1 31 December, 31 March, Var. vs 31  Net fixed assets increased €177 m to €7.9 bn Dec., 2016 2017 2016 driven by the increase of investment during the period Net fixed assets 7,723 7,901 177 Work in progress 2,650 2,687 37  Net debt of €1

  13. Slide 13: Agenda

    Agenda 13 Execution Update Financial Overview Appendix First quarter 2017 results

  14. Slide 14: E&P: Working interest production up 56% YoY

    E&P: Working interest production up 56% YoY 14 Main E&P data 1Q16 4Q16 1Q17  Brazilian production increased 5% QoQ, mainly due to ramp-up of FPSOs #5 and #6 1 Working interest production kboepd 56.3 84.9 88.0 Oil production kbpd 52.9 75.6 76.9  Increasing weight of gas sales due to the Net entitle

  15. Slide 15: R&M: Supportive refining margins and marketing performance

    R&M: Supportive refining margins and marketing performance 15 Main R&M data 1Q16 4Q16 1Q17  Spread over benchmark of $1.6/boe due to sourcing opportunities during the quarter Galp refining margin USD/boe 4.1 5.2 5.1 1 Refining cash cost USD/boe 2.0 1.7 1.7  Refining margin hedging with neutral imp

  16. Slide 16: G&P: Ebitda impacted by NG sourcing restrictions

    G&P: Ebitda impacted by NG sourcing restrictions 16 Main G&P data 1Q16 4Q16 1Q17  Higher volumes driven by the increase in sales to the electrical and industrial segments NG/LNG total sales volumes mm3 1,860 1,861 2,006 Sales to direct clients mm 3 901 1,048 1,149  Natural gas results impacted by

  17. Slide 17: Investor Relations team

    Investor Relations team 17 Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes João G. Pereira Results & presentation weblink : João P. Pereira www.galpenergia.com/en/investidor/Relatorios-e- Teresa Rodrigues resultados/resultados-trimestrais For further information on Galp, please go to: +351 21 724 08 6

Galp Energia, SGPS — Q1 2017 Earnings Presentation on 6ix