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

Galp Energia, Sgps S.a. Class B — Q3 2017 Earnings Presentation

19 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Oct 30, 2017

  1. Slide 1: Results Third quarter 2017

    Results Third quarter 2017 October 30, 2017 Third quarter 2017 results

  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: Agenda

    Agenda 3 Key Highlights Operational Performance Financial Performance Appendix Third quarter 2017 results

  4. Slide 4: Key Highlights

    4 Third quarter 2017 results

  5. Slide 5: Reinforcing Galp's position in the Carcará discovery in Brazil

    Reinforcing Galp’s position in the Carcará discovery in Brazil 5 BM-S-8 and Carcará North  Accessing Carcará North in the 2nd PSA bid round, and realigning BM-S-8 equity interests together with Statoil and Exxon  Carcará North consortium (Statoil op. 40%, Exxon 40%, Galp 20%) offered PO share of 6

  6. Slide 6: 3Q17 highlights

    3Q17 highlights 6  Ebitda of €487 m, up 27% YoY and in line QoQ, on the back of E&P production growth and a solid R&M contribution  Lula and Iracema: planned maintenance for the year mostly completed with six FPSOs currently at normalised levels and FPSO #7 ramping-up  R&M benefiting from higher

  7. Slide 7: Agenda

    Agenda 7 Key Highlights Operational Performance Financial Performance Appendix Third quarter 2017 results

  8. Slide 8: Pre-salt execution driving production growth

    Pre-salt execution driving production growth 8 Brazil Angola  Production up QoQ, despite planned maintenance during  Natural decline from mature blocks 14/14k the quarter  Execution of the Kaombo project ongoing, with  Ramp-up of unit #7 with 2 producer wells connected, production to start in 20

  9. Slide 9: Robust downstream contribution

    Robust downstream contribution 9 Refining & Marketing Gas & Power  Refining benefiting from higher benchmark margins,  Stable contribution from the natural gas activity conversion utilisation and gasoline exports to the U.S. supported by sales to direct clients  Marketing contribution leveraging

  10. Slide 10: Agenda

    Agenda 10 Key Highlights Operational Performance Financial Performance Appendix Third quarter 2017 results

  11. Slide 11: Q3 Ebitda of €487 m, up 27% YoY and in line QoQ

    Q3 Ebitda of €487 m, up 27% YoY and in line QoQ 11 Profit & Loss RCA (€m) 3Q16 2Q17 3Q17  Upstream Ebitda up YoY benefiting from production growth and higher realisation Turnover 3,499 3,779 3,892 prices, despite USD depreciation Ebitda 384 473 487 E&P 127 188 215  Supportive downstream results on

  12. Slide 12: Adjusting FY17 capex estimate with Carcará North acquisition

    Adjusting FY17 capex estimate with Carcará North acquisition 12 Capital Expenditure (€m)  Around 88% of total investment YTD allocated to E&P, of which Brazil accounted €1.2 bn for c.70% €1.0 - 1.1 bn  Expected FY17 capex of €1.0 - 1.1 bn considering bid round payments in Brazil, despite weaker US

  13. Slide 13: YTD positive free cash flow, post-dividend

    YTD positive free cash flow, post-dividend 13 9M17 Change in net debt (€m)  Operational performance supporting superior cash flow generation 1,492 53 362  Positive post-dividends FCF during the first 152 nine months of €35 m, despite dividend payments of €423 m 924 423 466 35 132 96 2 Ebitda Worki

  14. Slide 14: Strong financial position

    Strong financial position 14 Balance Sheet (€m)1 31 December, 30 June, 30 September,  Net fixed assets slightly up QoQ with 2016 2017 2017 investment more than offsetting depreciation charges and FX effects during the period Net fixed assets 7,721 7,458 7,505 Work in progress 2,650 2,460 2,463  Ne

  15. Slide 15: Agenda

    Agenda 15 Key Highlights Operational Performance Financial Performance Appendix Third quarter 2017 results

  16. Slide 16: E&P: Increased production driving higher quarter results

    E&P: Increased production driving higher quarter results 16 Main E&P data 3Q16 2Q17 3Q17  Production up 5% QoQ despite planned maintenance in Brazil and natural decline in Working interest production1 kboepd 74.0 89.9 94.6 Angola Oil production kbpd 68.8 78.0 82.8  Ebitda up QoQ benefiting from th

  17. Slide 17: R&M: Benefitting from supportive macro conditions

    R&M: Benefitting from supportive macro conditions 17 Main R&M data 3Q16 2Q17 3Q17  High availability of refining system allowing to leverage supportive economic environment Galp refining margin USD/boe 3.4 5.7 7.4 Refining cash cost1 USD/boe 1.5 1.6 1.6  Strong spread over benchmark of $1.8/boe be

  18. Slide 18: G&P: Stable contribution in line with volumes sold

    G&P: Stable contribution in line with volumes sold 18 Main G&P data 3Q16 2Q17 3Q17  Volumes mostly in line, with higher sales to direct clients partially offsetting lower volumes NG/LNG total sales volumes mm3 1,750 1,726 1,717 sold through trading Sales to direct clients mm3 950 1,052 1,065 3  LN

  19. Slide 19: Investor Relations team

    Investor Relations team 19 Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes João G. Pereira Results and 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

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