Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Q3 2019 Earnings Presentation
19 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Oct 22, 2019
Slide 1: 3Q19 Results & Strategy Update
3Q19 Results & Strategy Update October 22, 2019
Slide 2: Cautionary Statement
Cautionary Statement By attending or reading this presentation, you acknowledge and agree to customer within the meaning of Directive 2002/92/EC, where the customer industry to differ materially from those results expressed or implied in this be bound by the following limitations and restrictions. T
Slide 3: 3Q19 Key Highlights
3Q19 Key Highlights ▪ Robust cash flow generation despite weak contribution from refining ▪ 9M19 FCF of €694 m, covering FY dividends Corporate paid to shareholders ▪ Galp reconfirmed as an industry leader in the Dow Jones Sustainability Indices (#1 in Europe) ▪ Upstream contribution benefiting from
Slide 4: 3Q19 Operational performance
3Q19 Operational performance
Slide 5: Downstream contribution impacted by weak refining performance
Downstream contribution impacted by weak refining performance Refining & Marketing Gas & Power Planned maintenance activities and additional restrictions in Stable contribution after strong September 1H19 3Q Implementation of “+$1/boe” Lower NG/LNG sales to electrical Overview initiatives and own co
Slide 6: Upstream performance supported on ramp-up progression
Upstream performance supported on ramp-up progression 3Q Outlook Overview WI Production of 126 kboepd, 4Q19 production to continue benefiting from the ramp-up in benefiting from units’ ramp-up, with Brazil and Angola, with Lula unit #8 no relevant planned maintenance reaching plateau expected Unitis
Slide 7: Financial performance
1 SSB Financial 2 grorineinics)
Slide 8: Operational results driven by upstream despite lower contribution from downstream
Operational results driven by upstream despite lower contribution from downstream Profit & Loss (€m) 3Q18 2Q19 3Q19 3Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 RCA Ebitda 642 615 619 571 E&P 396 408 469 434 Upstream performance supported on higher production from Brazil and Angola, R&M 195 142 104
Slide 9: Solid cash generation
Solid cash generation 9M19 FCF of c.€0.7 bn FCF 9M19 (€m) IFRS 16 (389) 1,445 (23) 141 (141) 9M19 FCF of €694 m, covering full (46) year dividends paid to shareholders 1,856 (564) 3Q19 CFFO of €435 m, up €92 m (107) YoY, reflecting higher upstream contribution offsetting refining 694 (559) maintenan
Slide 10: Strategy update
Strategy update
Slide 11: Capital allocation guidelines
Capital allocation guidelines Balanced investments supporting long-term value creation Investment strategy Financial discipline Shareholder distribution Investing in sustainable growth Adding value while maintaining a Commitment to progressive across the energy value chain strong balance sheet divid
Slide 12: Net investment: Strengthening portfolio for resilience and long-term growth
Strengthening portfolio for resilience and long-term growth Sources and Uses 2020-22 (€bn) 8 Develop upstream business for value @$60/bbl flat Dividends to shareholders Adapt refining system, increasing asset Current competitiveness and resilience 4 portfolio Div. to minorities Net investment CFFO G
Slide 13: For the future of energy
Unique Selective Attractive asset base growth Returns Increase portfolio resilience and competitiveness Investment for growth along the energy value chain Focus on project returns and financial discipline Balance net investments with competitive shareholder returns Capture opportunities from the ene
Slide 14: Appendix
Appendix
Slide 15: 3Q19 E&P: Higher production offsetting lower oil price environment
3Q19 E&P Higher production offsetting lower oil price environment Main E&P data 3Q18 2Q19 3Q19 3Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 Working interest production kboepd 103.8 111.8 125.5 Production up QoQ, with Brazil Oil production kbpd 93.1 99.5 111.0 and Angola ramp-up Net entitlement produ
Slide 16: 3Q19 R&M: Performance impacted by refining operations
3Q19 R&M Performance impacted by refining operations Main R&M data 3Q18 2Q19 3Q19 3Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 Galp refining margin USD/boe 5.8 3.0 3.9 Maintenance and operational Refining cost USD/boe 1.9 2.3 3.0 restrictions impacting throughput and oil products sales Hedging impac
Slide 17: 3Q19 G&P: Normalised contribution from G&P activities
3Q19 G&P Normalised contribution from G&P activities Main G&P data 3Q18 2Q19 3Q19 3Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 NG/LNG total sales volumes mm 3 2,024 1,887 1,803 Lower NG/LNG sales to Sales to direct clients mm3 1,201 1,205 1,131 electrical and own consumptions Trading mm3 823 682 673
Slide 18: Keeping a solid financial position
Keeping a solid financial position Balance sheet (€m) 31 Dec. 30 Jun., 30 Sep., 2018 2019 2019 Net fixed assets1 7,340 7,424 7,437 Cash generation during the first nine months leads to net debt Rights of use (IFRS 16) - 1,240 1,202 reduction of €92 m to €1,645 m Working capital 814 782 837 Net debt
Slide 19: galp.com
galp.com