Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2012 Earnings Presentation
23 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Apr 27, 2012
Slide 1: Results & strategy execution update - First Quarter 2012
27 April 2012 Results & strategy execution update FIRST QUARTER 2012 Solid foundations to deliver sustainable value
Slide 2: Agenda
Key highlights Business overview Strategy execution update Final remarks Appendix 2 First quarter 2012 results
Slide 3: Key highlights
Key highlights ▪ Net profit in 1Q12 reached €50 Mln ▪ Outstanding exploration and appraisal results in Mozambique ▪ Exploration drilling activity underway on high potential projects ▪ Upgrade project heading to its end 3 First quarter 2012 results
Slide 4: Business overview
Key highlights Business overview Strategy execution update Final remarks Appendix 4 First quarter 2012 results
Slide 5: Net profit in 1Q12 reached €50 Mln
Net profit in 1Q12 reached €50 Mln Profit & Loss (€Mln) 1Q12 1Q11 YoY 4Q11 QoQ ▪ E&P and G&P supported earnings growth Turnover 4,795 3,796 +26% 4,375 +10% EBITDA 200 135 +48% 212 (6%) E&P 88 48 +85% 66 +34% ▪ R&M impacted by the R&M 29 23 +25% 53 (46%) evolution of refining G&P 83 61 +35% 87 (5%) m
Slide 6: Net debt impacted by the cash-in from capital increase in Petrogal Brasil
Net debt impacted by the cash-in from capital increase in Petrogal Brasil Balance sheet (€Mln) Mar. 2012 Dec. 2011 Change ▪ $5.2 bln deal successfully completed in March, Fixed assets 6,120 6,002 +118 ending a period of Work in progress 2,316 2,174 +142 stretched balance sheet Strategic stock 829 99
Slide 7: Short term outlook
Short term outlook ▪ 2Q12 working interest production targeted at c.25 kboepd ▪ Refining margin to recover QoQ, following benchmark trend ▪ Marketing volumes to remain depressed, still impacted by the Iberian economic environment ▪ Natural gas volumes to decrease QoQ due to seasonality, but still po
Slide 8: Strategy execution update
Key highlights Business overview Strategy execution update Final remarks Appendix 8 First quarter 2012 results
Slide 9: Outstanding exploration and appraisal results in Mozambique
Outstanding exploration and appraisal results in Mozambique Mozambique – Rovuma basin ▪ Mamba NE well reinforced Mamba complex natural gas in place estimate to at least 40 Tcf ▪ Currently drilling an Eocene prospect not connected to the Mamba structure, and with expected results by May ▪ 3 additiona
Slide 10: 1st drilling phase completed in Júpiter NE key well
1st drilling phase completed in Júpiter NE key well BM-S-24 ▪ Júpiter NE well primary aim is to assess CO2 distribution and thickness of oil rim ▪ The well is currently drilled until the top of the salt layer (c. 3,000 metres) ▪ Ultra-deepwater rig is expected to be in place by August to start the c
Slide 11: Appraisal activities reinforced Iara's potential
Appraisal activities reinforced Iara’s potential Iara field ▪ Iara West well successfully confirmed the discovery extension in the pre-salt layer ▪ Forthcoming DST will be key to define the subsequent appraisal activities, pending on rig availability ▪ Further appraisal activities being analysed tow
Slide 12: Currently drilling Carcará prospect in BM-S-8
Currently drilling Carcará prospect in BM-S-8 BM-S-8 ▪ Carcará well has already confirmed the presence of high quality oil in reservoirs located at c.5,750 meters ▪ The well continues being drilled to find the lower limit of the reservoirs with results expected by the end of 2Q12 ▪ Results will be i
Slide 13: Upgrade project heading to its end
Upgrade project heading to its end Sines refinery ▪ Commissioning started, with c.450 systems out of 600 already completed ▪ Hydrocracker handover to the refinery during 2Q12 ▪ Production from new units should progressively start during 3Q12 13 First quarter 2012 results
Slide 14: Final remarks
Key highlights Business overview Strategy execution update Final remarks Appendix 14 First quarter 2012 results
Slide 15: Final remarks
Final remarks ▪ Promising exploration and appraisal activity throughout 2012 ▪ Lula development project on track with growing impact in earnings ▪ Upgrade project to positively impact earnings in 2H12 ▪ Sound capital structure to fund current transformational projects and enabling flexibility to pur
Slide 16: Appendix
Key highlights Business overview Strategy execution update Final remarks Appendix 16 First quarter 2012 results
Slide 17: E&P earnings supported by the production ramp up in Brazil
E&P earnings supported by the production ramp up in Brazil Main E&P data 1Q12 1Q11 YoY 4Q11 QoQ ▪ Lula-1 project drove production growth with an Working interest production kboe/d 22.6 19.0 +19% 21.6 +5% average production of 7.4 Net entitlement production kboe/d 16.5 9.6 +72% 13.0 +27% kboepd Angol
Slide 18: EBITDA up 25% YoY following marketing business improvement
EBITDA up 25% YoY following marketing business improvement Main R&M data 1Q12 1Q11 YoY 4Q11 QoQ ▪ Galp Energia refining margin followed the trend Galp Energia refining margin $/bbl 0.8 1.3 (41%) 0.0 n.m. of the international Spread over benchmark $/bbl 1.4 1.8 (24%) 0.6 +127% refining environment Cr
Slide 19: G&P improvement on the back of trading activity
G&P improvement on the back of trading activity Main G&P data 1Q12 1Q11 YoY 4Q11 QoQ ▪ Natural gas supply volumes supported by the NG supply total sales volumes M m3 1,725 1,605 +7% 1,414 +22% trading activity Electrical M m3 368 502 (27%) 387 (5%) Industrial M m3 558 483 +16% 506 +10% Residential a
Slide 20: Capex shift towards upstream growth projects
Capex shift towards upstream growth projects Capital expenditure (€Mln) ▪ Development activities G&P in Brazil responsible for R&M E&P - Production majority of E&P capex E&P - Exploration 302 ▪ Exploration activities in Mozambique accounted 202 for c.25% of exploration 192 capex ▪ Downstream capex r
Slide 21: Major debt reimbursement scheduled for 2013-14 period
Major debt reimbursement scheduled for 2013-14 period M/L-term debt reimbursement profile (€Mln) 1,200 ▪ Total net debt of €0.8 Bln, 1,000 with an average life of 2.1 800 years 600 400 200 ▪ Average interest rate of 0 2012 2013 2014 2015 +2016 4.5%, up 82 b.p. YoY Debt structure as of March 2012 ▪ A
Slide 22: Disclaimer
Disclaimer RCA figures except otherwise noted. Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” "co
Slide 23: Investor Relations team
Investor Relations team Tiago Villas-Boas, Head of IR Cátia Lopes Inês Santos Maria Borrega Pedro Pinto Samuel Dias +351 21 724 08 66 investor.relations@galpenergia.com www.galpenergia.com Results & presentation weblink www.galpenergia.com/en/investidor/Relatori os-e-resultados/resultados-trimestrai