Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q4 2014 Earnings Presentation
26 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Feb 9, 2015
Slide 1: Results Fourth Quarter 2014
9 February 2015 Results FOURTH QUARTER 2014 An integrated energy player focused on exploration and production
Slide 2: Disclaimer
Disclaimer RCA figures except otherwise noted. 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 Energia” or the “Company”) and may be amended and supp
Slide 3: Key highlights, Execution update, Financial overview
Key highlights Execution update Financial overview Concluding remarks Appendix 3 Fourth quarter 2014 results
Slide 4: Key highlights
Key highlights ▪ 4Q14 Ebitda up 5% QoQ to €399 m, benefiting from Galp Energia’s integrated business profile, amidst a significant drop in oil price ▪ Production increased to 36.3 kboepd with FPSO #2 at full capacity and start of FPSO #3 in Lula/Iracema ▪ DoC of Iara area submitted by YE14, for thre
Slide 5: 2014: volatility returns to the market
2014: volatility returns to the market Oil and LNG prices ▪ During 2014, oil prices decreased ($/bbl) ($/mmbtu) 120 25 100 20 to a four year low 80 15 60 10 ▪ LNG prices impacted by crude 40 5 price drop and increase in 1Q14 2Q14 3Q14 4Q14 liquefaction installed capacity Brent (LHS) LNG Japan and Ko
Slide 6: Key highlights, Execution update, Financial overview
Key highlights Execution update Financial overview Concluding remarks Appendix 6 Fourth quarter 2014 results
Slide 7: FPSO #3 reached output of c.65kbopd with two producer wells
FPSO #3 reached output of c.65kbopd with two producer wells FPSO Cidade de Mangaratiba ▪ 2nd producer and 1st injector wells connected in December ▪ 2nd injector and 3rd producer wells expected during 1Q15 ▪ Injecting natural gas in reservoir until connection to gas export pipeline, expected by YE20
Slide 8: FPSO #4 to start production in 4Q15
FPSO #4 to start production in 4Q15 FPSO Cidade de Itaguaí ▪ Second unit allocated to Iracema, with 150 kbopd and 8 mmscmd installed capacity ▪ Hull converted in China and currently at Brasfels shipyard for topsides integration ▪ Eight wells already drilled prior to FPSO arrival, and one currently i
Slide 9: Iara: Declaration of Commerciality submitted at YE2014
Iara: Declaration of Commerciality submitted at YE2014 Iara, Block BM-S-11 ▪ EWT in Iara West-2 ended in December, with average flow rate of c.29 kbopd ▪ Three FPSO units expected in the initial development phase, for Greater Iara development ▪ PoD to be submitted together with Production Individual
Slide 10: Carcará: continuing to de-risk development
Carcará: continuing to de-risk development Block BM-S-8 ▪ Currently drilling Carcará Extension-2, using a rig with MPD equipment ▪ 2nd phase of Carcará Extension to be drilled by 2H15 after 1st phase conclusion during November ▪ DST at Carcará Extension-2 expected to be performed during 2015 10 Four
Slide 11: Mozambique: working towards FID
Mozambique: working towards FID Area 4 ▪ Petroleum Law and Decree Law for the Rovuma Project development approved at YE2014 ▪ DoC and PoD for Coral FLNG project already submitted, subject to FID ▪ Coral FLNG FEED+EPCIC developed by three consortia and expected in mid-2015 ▪ Four consortia working on
Slide 12: Downstream and gas: taking advantage of market dynamics
Downstream and gas: taking advantage of market dynamics Refining margins vs utilisation rate NG volumes (bcm) ($/bbl) 100% 10.0 4,6 8.0 80% 4,0 4,1 3,8 3,7 6.0 60% 3,0 4.0 2,2 40% 2.0 0.0 20% 0,7 -2.0 0% -4.0 1Q14 2Q14 3Q14 4Q14 2011 2012 2013 2014 Utilization rate (%) (LHS) Benchmark refining margi
Slide 13: Key highlights, Execution update, Financial overview
Key highlights Execution update Financial overview Concluding remarks Appendix 13 Fourth quarter 2014 results
Slide 14: Ebitda up 15% YoY to €1,314m
Ebitda up 15% YoY to €1,314m Profit & Loss RCA (€ m) ▪ 4Q14 Upstream Ebitda 4Q14 4Q13 YoY 12M14 YoY decreased YoY, impacted by Turnover 4,470 4,717 (5%) 17,904 (9%) falling oil prices, despite higher Ebitda 399 271 +47% 1,314 +15% production E&P 102 109 -7% 444 +12% R&M 191 64 n.m. 412 +32% ▪ Operat
Slide 15: 2014 capex of €1,143 m
2014 capex of €1,143 m Capital expenditure (€ m) ▪ E&P activities accounted for 87% of 2014 Group’s capex, of which G&P 1,143 BM-S-11 represented 61% R&M 963 ▪ Exploration and appraisal FY capex mainly channelled to Brazil E&P D&P pre-salt projects, Mozambique and Morocco 366 236 ▪ Downstream and ga
Slide 16: Robust cash flow from operations
Robust cash flow from operations Cash Flow (€ m)1 4Q14 4Q13 12M14 12M13 Ebit IFRS (166) 116 180 401 Dividends from associates 19 20 74 64 DD&A 162 138 614 585 Change in working capital 316 110 326 30 Cash flow from operations 331 384 1,193 1,081 Net capex2 (365) (245) (1,142) (854) Net financial exp
Slide 17: Maintaining a sound capital structure
Maintaining a sound capital structure Balance sheet (€ m)1 ▪ Falling commodity prices drives Dec.2014 Sep.2014 Dec-Sep Dec.2013 Dec-Dec the reduction in working capital Fixed and LT assets 7,599 7,413 +186 6,883 715 Work in progress 1,768 1,767 +1 1,303 +465 ▪ Net debt of €1.6 bn considering loan to
Slide 18: Funding in place to support capex programme
Funding in place to support capex programme Debt reimbursement profile1 (€ m) ▪ Gross debt of €3.7 bn with 1,000 @31 Dec 2014 @30 Sept 2014 average maturity of 3.7 years 800 and average interest rate of 600 4.2%1 400 ▪ Maturing debt in 2015 of c.€170 200 0 2015 2016 2017 2018 2019 2020 2021+ m Debt
Slide 19: Key highlights, Execution update, Strategy overview
Key highlights Execution update Strategy overview Concluding remarks Appendix 19 Fourth quarter 2014 results
Slide 20: Concluding remarks
Concluding remarks ▪ Lula/Iracema reservoir continued to deliver ahead of expectations ▪ DoC for Iara area submitted to ANP ▪ DoC and PoD for Coral submitted and working towards FID in Area 4 projects ▪ 4Q14 results benefited from integration on improved R&M and G&P performance ▪ Strong financial po
Slide 21: Save the date: Capital Markets Day 2015
© | SAVE THE DATE galp energia i Capital Markets Day 2015 10 March 2015 London, UK
Slide 22: Appendix
Key highlights Execution update Financial overview Concluding remarks Appendix 22 Fourth quarter 2014 results
Slide 23: E&P: Operational results impacted by current oil market environment
E&P: Operational results impacted by current oil market environment Main E&P data ▪ Higher production in Brazil, due 4Q14 4Q13 YoY 12M14 YoY to FPSO #2 at full capacity and start of operations of FPSO #3 Working interest production kboepd 36.3 25.3 +43% 30.5 +24% Oil production kbopd 34.0 24.7 +37%
Slide 24: R&M: Ebitda increase driven by improved refining margins
R&M: Ebitda increase driven by improved refining margins Main R&M data ▪ Flexibility of refining system and 4Q14 4Q13 YoY 12M14 YoY favorable market conditions contributed to a 4Q14 premium Galp Energia refining margin USD/bbl 5.4 1.7 n.m. 3.3 +52% to benchmark of $2.5/bbl Refining cash cost USD/bbl
Slide 25: G&P: Ebitda up 5% YoY due to higher LNG international sales
G&P: Ebitda up 5% YoY due to higher LNG international sales Main G&P data ▪ LNG structured trading volumes 4Q14 4Q13 YoY 12M14 YoY increased with focus in Asian and Latin American markets NG supply total sales volumes mm3 1,885 1,941 (3%) 7,472 +5% Sales to direct clients mm3 968 1,131 (14%) 3,759 (
Slide 26: For further information on Galp Energia
Investor Relations team Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes Joana Pereira Marta Silva Pedro Pinto +351 21 724 08 66 Investor.relations@galpenergia.com For further information on Galp Energia, please go to: www.galpenergia.com Results & presentation weblink www.galpenergia.com/en/investidor