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

Galp Energia, Sgps S.a. Class B — Q2 2016 Earnings Presentation

19 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 29, 2016

  1. Slide 1: Results Second quarter 2016

    July 29, 2016 Results Second quarter 2016

  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: 2Q16 highlights

    2Q16 highlights 3  2Q16 Ebitda of €337 m, down 25% YoY, given lower oil prices and refining margins  Strong execution of key upstream assets, with six units already producing in Brazil  WI production of 54.7 kboepd, down 3% QoQ, impacted by maintenance in Brazil during April  Increase in raw mat

  4. Slide 4: Agenda

    Agenda 4 Execution Update Financial Overview Appendix Second quarter 2016 results

  5. Slide 5: 2Q16: High inventories cap crude price increase

    2Q16: High inventories cap crude price increase 5 Brent price vs. Refining margin ($/bbl) Iberian market evolution (kton, mm3) 100 8.0 600 80 6.0 300 60 4.0 0 40 2.0 -300 20 0.0 -600 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Brent Benchmark refining margin (RHS) Oil Market, YoY NG

  6. Slide 6: Brazil: Strong execution in Lula/Iracema

    Brazil: Strong execution in Lula/Iracema 6 FPSO #1 Angra dos Reis – Lula Pilot FPSO #4 Itaguaí – Iracema North 150 kbopd 100 kbopd  Turnaround maintenance in April  Five producers connected  Steady production at plateau  Production still constrained by during the remainder of the gas export avai

  7. Slide 7: Africa: Development activities under progress

    Africa: Development activities under progress 7 Mozambique: area 4 Angola: blocks 14/14k and block 32  Focus on improving FLNG solution in Coral  Block 14/14k: 2Q16 production slightly impacted by shutdown of TL platform for rig demobilisation  Analysing EPC proposals for the first stage of devel

  8. Slide 8: Downstream and gas: Consistent delivery

    Downstream and gas: Consistent delivery 8 Refining & Marketing Gas & Power  Planned maintenance in some units during Q2  Natural gas activity positively impacted by sourcing optimisation  Realised margin continuing to benefit from arbitrage opportunities, namely gasoline exports to the U.S.  Pow

  9. Slide 9: Ring fencing regulated gas infrastructure business

    Ring fencing regulated gas infrastructure business 9 Transaction structure Highlights Values @ June 30, 2016  Marubeni led consortium with Toho Gas to acquire a Galp Energia, SGPS, SA stake of 22.5% in GGND Total Assets: €11.7 bn  Shared governance leading to accounting deconsolidation Net Debt: €

  10. Slide 10: Agenda

    Agenda 10 Execution Update Financial Overview Appendix Second quarter 2016 results

  11. Slide 11: Q2 Ebitda of €337 m, down 25% YoY

    Q2 Ebitda of €337 m, down 25% YoY 11 Profit & Loss RCA (€m) 1Q16 2Q15 2Q16 QoQ YoY 1H16 YoY  E&P results impacted by oil price decline Turnover 2,829 4,247 3,267 +15% (23%) 6,095 (25%) despite production growth YoY Ebitda 293 447 337 +15% (25%) 631 (23%) E&P 48 119 86 +79% (27%) 135 (37%)  R&M dow

  12. Slide 12: Group capex of €287 m in 2Q16

    Group capex of €287 m in 2Q16 12 Capital Expenditure (€m)  85% of overall investment allocated to E&P, of 630 which 95% to development activities  Downstream and gas capex of c.€42 m, up €15 m, impacted by planned refining maintenance 343 313 287  2016 capex guidance maintained at €1.1 - €1.3 bn,

  13. Slide 13: Pre-expansion FCF of €215 m during 1H16

    Pre-expansion FCF of €215 m during 1H16 13 (€m) 700 500 300 215 100 -100 -300 Ebitda + Net interest Working Maintenance Dividends Pre-expansion Expansion Associates (IFRS) expenses + Taxes capital capex paid FCF capex Second quarter 2016 results

  14. Slide 14: Maintaining a robust financial position

    Maintaining a robust financial position 14 Balance Sheet (€m)1 Dec.2015 Mar.2016 Jun.2016 (prior to GGND Jun.2016 Jun-Dec Jun-Mar  Net fixed assets of €8.4 bn, or €7.3 bn reclassification) 2 considering infrastructure assets accounted as Net fixed assets 7,892 8,077 8,439 7,304 (588) (773) held for

  15. Slide 15: Agenda

    Agenda 15 Execution Update Financial Overview Appendix Second quarter 2016 results

  16. Slide 16: E&P: Net entitlement production up 28% YoY

    E&P: Net entitlement production up 28% YoY 16 Main E&P data 1Q16 2Q15 2Q16 QoQ YoY 1H16 YoY  Brazilian production increased YoY, impacted Working interest production 1 kboepd 56.3 43.8 54.7 (3%) +25% 55.5 +30% by the start-up of FPSO #4 and FPSO #5 Oil production kbopd 52.9 40.5 51.7 (2%) +28% 52.3

  17. Slide 17: R&M: Ebitda down YoY driven by lower refining contribution

    R&M: Ebitda down YoY driven by lower refining contribution 17 Main R&M data 1Q16 2Q15 2Q16 QoQ YoY 1H16 YoY  Refining margin of $4.6/boe given lower Galp refining m argin USD/boe 4.1 7.3 4.6 +12% (37%) 4.3 (35%) margins on the international market Refining cash cost 1 USD/boe 2.0 1.4 1.7 (12%) +25%

  18. Slide 18: G&P: Ebitda up YoY driven by positive sourcing optimisation

    G&P: Ebitda up YoY driven by positive sourcing optimisation 18 Main G&P data 1Q16 2Q15 2Q16 QoQ YoY 1H16 YoY  NG volumes down YoY, reflecting decrease in NG supply total sales volum es mm3 1,860 1,869 1,593 (14%) (15%) 3,454 (15%) trading volumes sold Sales to direct clients mm3 901 919 882 (2%) (4

  19. Slide 19: Investor Relations team

    Investor Relations team 19 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

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