Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — FY2012 Earnings Presentation
27 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Feb 11, 2013
Slide 1: Results & Strategy execution update – Full Year and Fourth Quarter 2012
11 February 2013 Results & Strategy execution update FULL YEAR AND FOURTH QUARTER 2012 Solid foundations to deliver sustainable value
Slide 2: Agenda
Key highlights Strategy execution update Business overview Final remarks Appendix 2 Full year and fourth quarter 2012 results
Slide 3: Key highlights
Key highlights ▪ Carcará and Júpiter NE results supporting respective development plans ▪ Completion of two additional appraisal wells in Mozambique raised estimated gas in place up to 75 Tcf ▪ Strengthening exploration portfolio with recent farm-ins in Namibia and Morocco ▪ EBITDA in 4Q12 of €229 M
Slide 4: Strategy execution update
Key highlights Strategy execution update Business overview Final remarks Appendix 4 Full year and fourth quarter 2012 results
Slide 5: Carcará well de-risked the development project of BM-S-8
Carcará well de-risked the development project of BM-S-8 BM-S-8 ▪ Carcará well proved a significant oil discovery with a 471 meters oil column ▪ Appraisal well to assess reservoir extension and DST to be performed to test reservoir productivity ▪ One FPSO scheduled for Carcará area by 2018 5 Full ye
Slide 6: Relevant data gathered from Júpiter NE appraisal well
Relevant data gathered from Júpiter NE appraisal well BM-S-24 ▪ Júpiter NE well confirmed the continuity of the reservoir and the same hydrocarbon mix ▪ Ongoing appraisal and evaluation studies on potential development options ▪ Testing Bracuhy prospect in 2013 6 Full year and fourth quarter 2012 re
Slide 7: Preparing Rovuma LNG project whilst looking for exploration upside
Preparing Rovuma LNG project whilst looking for exploration upside Mozambique ▪ Mamba complex estimated GIIP increased to up to 75 Tcf ▪ Mamba appraisal activities expected to be concluded ; Mamba NE-2 during 1H13 after the drilling ; Mamba South-2 of Mamba South-3 and Coral- Coral-2 3 wells Coral-1
Slide 8: First well about to start in Namibia after recent farm-in
First well about to start in Namibia after recent farm-in Namibia ▪ Primary objectives with estimated gross recoverable exploration resources of almost 8 bln bbl1 with PoS’s in the 20%-30% range ▪ Rig already arrived in Namibian waters to start 2013 drilling campaign in Walvis and Orange basins ▪ Fi
Slide 9: Morocco is the first exploration operated offshore project
Morocco is the first exploration operated offshore project Morocco ▪ Relevant stake of 50% acquired along with operatorship in shallow waters ▪ The primary target, Trident, has estimated gross recoverable exploration resources of 450 mln bbl1 ▪ An exploration well is expected to be drilled before mi
Slide 10: Promising exploration and appraisal drilling activity in 2013
Promising exploration and appraisal drilling activity in 2013 2013 key impact wells Duration Country Area Target Interest E/ A Spud Date (# days) Lula Lula West - 2 10% A 4Q12 120 BM-S-8 Carcará (extension) 14% A 4Q13 120 BM-S-24 Bracuhy 20% E 2Q13 150 Brazil* Potiguar Ararauna 20% E 1Q13 120 Potigu
Slide 11: FPSO Cidade de Paraty delivery on track to start by 2Q13
FPSO Cidade de Paraty delivery on track to start by 2Q13 FPSO Cidade de Paraty ▪ FPSO Cidade de Paraty topsides integration works almost completed and should leave the shipyard in March ▪ Lula NE production expected to start in 2Q13 with one producing well ▪ Production ramp-up to last 18 months, and
Slide 12: Hydrocracker production ramping-up during first quarter
Hydrocracker production ramping-up during first quarter New units at Sines refinery ▪ Hydrocracker complex initiated commercial production phase in January 10 ▪ New units production steadily increasing, with maximum capacity expected during 1Q13 ▪ Upgrade already contributing to incremental refining
Slide 13: Business overview
Key highlights Strategy execution update Business overview Final remarks Appendix 13 Full year and fourth quarter 2012 results
Slide 14: Net profit in 4Q12 of €83 Mln, up 10% YoY
Net profit in 4Q12 of €83 Mln, up 10% YoY Profit & Loss (€Mln) 4Q12 4Q11 YoY QoQ 12M12 YoY ▪ EBITDA increase driven by higher Brazilian Turnover 4,231 4,375 (3%) (14%) 18,507 +10% production and higher EBITDA 229 208 +10% (25%) 1,015 +27% refining margin E&P 77 66 +17% (30%) 374 +49% R&M 76 50 +51%
Slide 15: Sound financial structure maintained
Sound financial structure maintained Balance sheet (€Mln) Dec.2012 Sep.2012 Dec - Sep Dec.2011 Dec - Dec ▪ Net debt increase QoQ mainly driven by capex Fixed assets 6,599 6,430 +169 6,002 +597 execution Work in progress 2,655 2,559 +96 2,174 +481 Other assets (liabilities) (452) (583) +131 (407) (45
Slide 16: Short term outlook
Short term outlook ▪ 1Q13 working interest production targeted at c.24 kboepd ▪ Refining margin to benefit from production ramp-up of the hydrocracker complex throughout 1Q13 ▪ Marketing volumes down YoY, impacted by the Iberian macro economic environment ▪ Natural gas volumes to increase QoQ on the
Slide 17: Final remarks
Key highlights Strategy execution update Business overview Final remarks Appendix 17 Full year and fourth quarter 2012 results
Slide 18: Final remarks
Final remarks ▪ New areas of exploration portfolio to be derisked starting in 1Q13 ▪ Production growth profile reinforced in 2013 with the start-up of Lula NE project ▪ Sines hydrocracker ramping up towards steady production throughout the first quarter ▪ LNG trading activity to be sustained, furthe
Slide 19: Don’t miss our Capital Markets Day 2013
Don’t miss our Capital Markets Day 2013 19 Full year and fourth quarter 2012 results
Slide 20: Appendix
Key highlights Strategy execution update Business overview Final remarks Appendix 20 Full year and fourth quarter 2012 results
Slide 21: Production increased 8% YoY despite maintenance activities in 4Q12
Production increased 8% YoY despite maintenance activities in 4Q12 Main E&P data ▪ Lula-1 project drove 4Q12 4Q11 YoY QoQ 12M12 YoY production growth with an Working interest production kboepd 23.4 21.6 +8% (10%) 24.4 +17% average production of 10.3 Net entitlement production kboepd 17.6 13.0 +36% (
Slide 22: EBITDA 51% higher YoY on the back of the less adverse environment
EBITDA 51% higher YoY on the back of the less adverse environment Main R&M data ▪ Refining business benefited 4Q12 4Q11 YoY QoQ 12M12 YoY from increase in benchmark Galp Energia refining margin $/bbl 0.9 (0.0) n.m. (78%) 2.2 n.m. refining margins, despite Spread over benchmark $/bbl (0.5) 0.6 n.m. n
Slide 23: NG volumes increased by 10% YoY following stronger LNG trading
NG volumes increased by 10% YoY following stronger LNG trading Main G&P data 4Q12 4Q11 YoY QoQ 12M12 YoY ▪ LNG trading activity weighing around 40% of NG supply total sales volumes M m3 1,558 1,414 +10% +6% 6,253 +17% natural gas supply volumes Electrical M m3 253 387 (35%) (38%) 1,251 (33%) Industr
Slide 24: Around 70% of total capex allocated to E&P activities in 4Q12
Around 70% of total capex allocated to E&P activities in 4Q12 Capital expenditure (€Mln) ▪ Exploration activities G&P responsible for c.40% of R&M E&P - Production upstream capex E&P - Exploration 1000 940 ▪ Lula project responsible for the majority of E&P development capex 327 222 ▪ Iberian capex d
Slide 25: Average interest rate of 4.5% maintained
Average interest rate of 4.5% maintained M/L-term debt reimbursement profile (€Mln) ▪ Total net debt of €1.7 Bln or 1,200 €0.8 Bln if loan to Sinopec 1,000 was considered as cash and 800 equivalents 600 400 200 ▪ Net debt to Equity at 12% 0 2013 2014 2015 2016 +2017 and net debt to Ebitda of 0.8x, i
Slide 26: 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 27: Investor Relations team
Investor Relations team Tiago Villas-Boas, Head of IR Cátia Lopes Inês Santos Maria Borrega Pedro Pinto +351 21 724 08 66 investor.relations@galpenergia.com www.galpenergia.com Results & presentation weblink For further information on Galp Energia, please go to: www.galpenergia.com www.galpenergia.c