Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q2 2009 Earnings Presentation
18 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Aug 6, 2009
Slide 1: Second Quarter and First Half 2009 Results
SECOND QUARTER AND FIRST HALF 2009 RESULTS AUGUST 06 2009 Extending success into new challenges Investor Relations
Slide 2: Highlights
HIGHLIGHTS Second Quarter and First Half 2009 Results Investor Relations
Slide 3: Second Quarter and First Half 2009 Results Highlights
SECOND QUARTER AND FIRST HALF 2009 RESULTS HIGHLIGHTS EXPLORATION & Strong decrease in crude price, down 53% YoY PRODUCTION REFINING & Global weak demand with negative impact on refining margins MARKETING GAS & Natural gas supply margins recovering POWER FINANCIALS Financing strategy in place to exe
Slide 4: 2Q09 Net Profit of €52 Mln
2Q09 NET PROFIT OF €52 MLN Profit & Loss € Mln 2Q09 2Q08 YoY QoQ 1H09 YoY Turnover 2,866 4,020 (29%) (2%) 5,793 (23%) ▪ Operating results EBITDA 130 216 (40%) (14%) 281 (38%) impacted by R&M, though E&P 29 70 (58%) +90% 45 (64%) with higher contribution from E&P and G&P QoQ R&M 42 43 (2%) (50%) 126
Slide 5: Economic Environment Impacting Operating Drivers
ECONOMIC ENVIRONMENT IMPACTING OPERATING DRIVERS ▪ Working interest KEY OPERATING DATA production impacted by OPEC cuts 2Q09 2Q08 YoY QoQ 1H09 YoY Working interest production kbbl/d 13.4 15.5 (14%) +1% 13.3 (9%) ▪ Refining margin followed Net entitlement production kbbl/d 9.3 11.3 (18%) +11% 8.9 (16
Slide 6: Business Overview
BUSINESS OVERVIEW Second Quarter and First Half 2009 Results Investor Relations
Slide 7: Strong Decrease in Crude Price, Down 53% YoY
STRONG DECREASE IN CRUDE PRICE, DOWN 53% YoY MAIN DATA E&P 2Q09 2Q08 YoY QoQ 1H09 YoY ▪ OPEC cuts in 2009 negatively impacted Working interest production kbbl/d 13.4 15.5 (14%) +1% 13.3 (9%) production levels Net entitlement production kbbl/d 9.3 11.3 (18%) +11% 8.9 (16%) Net entitlement production
Slide 8: Global Weak Demand with Negative Impact on Refining Margins
GLOBAL WEAK DEMAND WITH NEGATIVE IMPACT ON REFINING MARGINS MAIN DATA R&M ▪ Light/heavy crude spread decrease drove down premium to benchmark 2Q09 2Q08 YoY QoQ 1H09 YoY and refining margins Galp Energia refining margin $/bbl 1.6 4.0 (60%) (42%) 2.1 (42%) Spread over benchmark $/bbl 1.0 2.6 (61%) n.m
Slide 9: Natural Gas Supply Margins Recovering
NATURAL GAS SUPPLY MARGINS RECOVERING MAIN DATA G&P ▪ Strong volumes in 2Q09 2Q08 YoY QoQ 1H09 YoY liberalized industrial segment with positive NG supply total sales volumes M m3 1,115 1,478 (25%) +4% 2,189 (26%) impact on EBITDA Liberalized markets sales volumes M m3 774 881 (12%) +58% 1,263 (26%)
Slide 10: Financial Overview
FINANCIAL OVERVIEW Second Quarter and First Half 2009 Results Investor Relations
Slide 11: 2Q09 Net Profit RCA of €52 Mln
2Q09 NET PROFIT RCA OF €52 MLN Profit & Loss ▪ Others are mainly related to cost savings at the € Mln 2Q09 2Q08 YoY QoQ 1H09 YoY holding level, which will Turnover 2,866 4,020 (29%) (2%) 5,793 (23%) be allocated to business segments in the future EBITDA 130 216 (40%) (14%) 281 (38%) E&P 29 70 (58%)
Slide 12: Capex Focused on Transformational Projects Execution
CAPEX FOCUSED ON TRANSFORMATIONAL PROJECTS EXECUTION CAPEX ▪ E&P capex conducted to G&P € Mln operations in Block 14, R&M namely Tômbua-Lândana, E&P which production is due to 300 264 ramp-up at 3Q09 250 216 200 168 ▪ Conversion refining project on track 150 117 100 ▪ Main stake of G&P capex 50 chan
Slide 13: Stable Net Debt Level Despite Dividend Payment
STABLE NET DEBT LEVEL DESPITE DIVIDEND PAYMENT CONSOLIDATED BALANCE SHEET € Mln Jun. 2009 Mar. 2009 Jun - Mar Dec. 2008 Jun - Dec ▪ Fixed assets increase, in line with capex execution Fixed assets 3,824 3,698 +126 3,881 (57) Work in progress 1,007 924 +83 868 +139 Strategic stock 603 595 +7 480 +123
Slide 14: Strong Liquidity Position
STRONG LIQUIDITY POSITION Debt structure as of June 2009 64% 89% ▪ Net debt totalled €2.1 Bln 36% 11% ▪ Average M/L-term debt Floating Fixed Short-term M/L-term maturity of 4.3 years M/L-term M/L-term ▪ Average interest rate of 3.5% M/L-term debt reimbursement profile € Mln 1 1,000 ▪ Current liquidi
Slide 15: Outlook
OUTLOOK EXPLORATION & Drilling program, namely in Santos and Espírito Santo basins PRODUCTION REFINING & Cautious refining margin outlook MARKETING GAS & Mismatch of sourcing and marketing natural gas contracts ends in 3Q09 POWER FINANCIALS Capex execution on track and focused on transformational pr
Slide 16: Strategy Execution – Key Points
STRATEGY EXECUTION – KEY POINTS 9 Tômbua-Lândana’s production to start-up in 3Q09 9 BM-S-11’s project (Tupi, Iara and Iracema) on fast track development 9 Conversion project execution on time 9 Synergies captured from Iberian oil acquisitions in line with expectations 9 Increased focus on cost contr
Slide 17: Disclaimer
DISCLAIMER 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,” "continue," “should” and similar expres
Slide 18: Second Quarter and First Half 2009 Results
SECOND QUARTER AND FIRST HALF 2009 RESULTS AUGUST 06 2009 Tiago Villas-Boas Investor Relations Officer tiagovb@galpenergia.com T: +351 21 724 08 66 Extending success into new challenges www.galpenergia.com F: +351 21 724 29 65