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

Galp Energia, Sgps S.a. Class B — Galp Energia — Q2 2020 Earnings Presentation

19 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 27, 2020

  1. Slide 1: 2Q20 Results

    2Q20 RESULTS July 27 2020 galp (©)

  2. 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;

  3. Slide 3: Recent Developments

    RECENT DEVELOPMENTS Carlos Gomes da Silva, CEO

  4. Slide 4: 2Q20: Quick adaptation to challenging COVID-19 context

    4 2Q20: QUICK ADAPTATION TO CHALLENGING COVID-19 CONTEXT Upstream operations marginally impacted during the quarter Downstream significant slowdown, mainly during April and May, with June showing recovery Renewables & New Businesses JV agreement with ACS Group related with Solar PV Spanish acquisiti

  5. Slide 5: COVID-19 leading to harsh market conditions

    =—— COVID-19 LEADING TO HARSH MARKET CONDITIONS RECOVERY STARTED IN JUNE Brent Price ($/bbl) Oil products cracks ($/ton) Iberian demand (YoY, %) 80 200 60% 2Q20 2Q20 2Q20 70 150 60 i ‘ 4 30% 50 100 wi “A 40 \ ov - 30 50 | aa r 20 ° -30% 10 ° ~e -60% 2019 2020 2021 2019 2020 2021 2019 2020 2021 — Bre

  6. Slide 6: Operations in 2Q20

    =——— OPERATIONS IN 2Q20 PERFORMANCE IMPACTED BY MARKET CONDITIONS Upstream Refining & Midstream Commercial Renewables & New Businesses * Production stable QoQ * Refining system slowdown * Sales impacted by * 2.9 GW solar PV agreement despite two FPSO due to high level of lockdowns in April and May a

  7. Slide 7: Short-term call to action

    =——— SHORT-TERM CALL TO ACTION FOCUS ON INCREASING RESILIENCE Upstream Refining & Midstream > 5 O O €m capex + opex reduction p.a. 2020/21 * Production costs expected * Reduced operational levels consistently <$3/boe mitigating refining contribution ang + Rescheduling key development plans + Mainten

  8. Slide 8: Challenging 2020 outlook

    =—— CHALLENGING 2020 OUTLOOK MAINTAINING GALP STRATEGIC GROWTH P, 2H20 Outlook Positioning Galp for the future of energy Upstream Resuming ramp-up with production growth YoY now expected at ¢.10% Refining & Midstream tning Exploring new opportunities with natural Still expecting a weak and volatile

  9. Slide 9: Protecting short term value

    PROTECTING SHORT TERM VALUE —— TO SUPPORT GROWTH STRATEGY Cash savings initiatives 2020/21 net capex expected at €0.5 - 0.7 bn p.a. Distributions No interim distribution, with FY dividend dependent on FY performance Additional potential levers Asset rotation Adjusting to lower operational contributi

  10. Slide 10: 2Q20 Results

    @) 2Q20 RESULTS Filipe Silva, CFO

  11. Slide 11: Group EBITDA of €291 m in 2Q20

    —— = GROUP EBITDA OF €291 M IN 2Q20 STRONGLY IMPACTED BY MACRO CONDITIONS n 2Q20 Results ém 2Q19 1Q20 2Q20 RCA Ebitda 615 469 291 Upstream 408 286 204 Refining & Midstream 97 90 19 Commercial 105 90 59 Renewables & New Businesses fo) 1 -4 RCA Ebit 386 217 -57 Associates 47 19 24 Financial results -1

  12. Slide 12: Cash generation

    —— CASH GENERATION SUSTAINING FCF DESPITE THE IMPACT ON OPERATIONAL PERFORMANCE CFFO of €160 m Lower operational contribution from the harsh market conditions and relevant inventory effect Investment and financial cash flow Net capex already reflecting plan adjustments and the equalisation settlemen

  13. Slide 13: Controlled financial position

    —— CONTROLLED FINANCIAL POSITION 13 TO SUPPORT MARKET UNCERTAINTY 31Dec., 31Mar., 31Jun., €m 2019 2020 2020 Net fixed assets Net fixed assets” 7,358 7,439 7,008 Reduction reflecting unitisation settlement and Rights of use (IFRS 16) 1,167 1171 1124 impairments in Upstream Working capital 952 663 652

  14. Slide 14: pupapaspnesein

    ee pupapaspnesein

  15. Slide 15: 2Q20 Upstream

    =—= 2Q20 UPSTREAM REFLECTING SIGNIFICANT WEAKER OIL PRICE 2Q19 1Q20 2Q20 Working interest production kboepd ms 131A 132.2 WI production flat QoQ including two stoppages Oil production kbpd 99.5 118.1 118.6 related with Covid-19 Net entitlement production kboepd 109.8 129.6 130.3 Angola kbpd 122 141

  16. Slide 16: 2Q20 Refining & Midstream

    —— 2Q20 REFINING & MIDSTREAM PERFORMANCE IMPACTED BY DEMAND DETERIORATION AND COMMODITIES ENVIRONMENT 16 2Q19 1Q20 2Q20 Raw materials processed mboe 26.1 26.8 13.4 Galp refining margin USD/boe 30 19 18 Oil products supply! mton 44 44 2.5 NG/LNG supply & trading volumes’ TWh 22.0 77 117 Trading TWh 8

  17. Slide 17: 2Q20 Commercial

    ——= 2Q20 COMMERCIAL OPERATIONAL ADJUSTMENTS TO COPE WITH SIGNIFICANT DEMAND DECREASE 2Q19 1Q20 2Q20 Commercial sales to clients Oil products mton 24 18 1.2 Natural gas TWh 79 07 49 Electricity TWh 08 09 07 RCA Ebitda €m 105 30 59 RCA Ebit €m 81 68 36 Net Income from Commercial Associates €m fe) -3 a

  18. Slide 18: Debt indicators

    —— DEBT INDICATORS Debt indicators Debt reimbursement (€m) cm 31Mar., 30 Jun., 2020 2020 4,000 Cash and cash equivalents 1,485 1,696 800 Undrawn credit facilities 1164 1,263 600 Gross debt 2,981 3,627 Operating leases (IFRS 16) 1,252 1,188 200 ses 0 2020 021 2022 2023 2024 2025 2026+ % Debt at fixed

  19. Slide 19: Slide 19

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