Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Q2 2019 Earnings Presentation
17 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 29, 2019
Slide 1: 2Q19 Results
2Q19 Results July 29, 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: 2Q19 Key Highlights
2Q19 Key Highlights Strong cash flow generation despite challenging refining environment Corporate FCF of €342 m covering the dividend payments to minorities and shareholders Maintaining robust financial position Good progress on Lula units’ ramp-up (#8 & #9) and fast ramp-up in Kaombo 2Q1
Slide 4: Operational performance
Operational performance
Slide 5: Upstream portfolio continuing to ramp up according to plan
Upstream portfolio continuing to ramp up according to plan 2Q Outlook Overview WI Production of 112 kboepd, with Continuing development activities units’ ramp-up offset by in Iara towards first oil by YE2019 Lula unitisation and maintenance Performing DST in Carcará East Start-up of Kaombo South FPS
Slide 6: Resilient downstream contribution supported by oil marketing and G&P performance
Resilient downstream contribution supported by oil marketing and G&P performance Refining & Marketing Gas & Power Strong performance from Refining performance impacted by commercial activity, also benefiting weaker product cracks and from sourcing optimisation 2Q challenging sourcing conditions Over
Slide 7: Delivering according to plan with the same discipline and focus
Delivering according to plan with the same discipline and focus Maintaining a resilient and competitive portfolio Integrated profile and execution performance supporting results Selective capital allocation Consistently improving our ROACE financial position Working on the next growth 15% Well posit
Slide 8: Financial performance
‘Financial performanc e
Slide 9: Solid earnings under a challenging refining environment
Solid earnings under a challenging refining environment Profit & Loss (€m) 2Q18 1Q19 2Q19 2Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 RCA Ebitda 628 494 615 566 E&P 411 374 408 374 Ebitda up QoQ across all businesses, but down YoY driven by lower macro R&M 174 70 142 129 G&P 34 47 57 57 Upstream Yo
Slide 10: Strong cash generation covering dividend payments
Strong cash generation covering dividend payments FCF 2Q19 (€m) IFRS 16 127 29 613 49 49 0 CFFO of €613 m, up €217 m QoQ 223 despite challenging refining environment 712 39 564 Net capex includes €77 m related to payment for the last 3% stake 342 296 acquisition in BM-S-8 7 Positive post-dividend FC
Slide 11: 2019 expected performance
Updating 2019 expected performance FY2019 guidance FY2019 guidance @Feb-19 Outlook 1H19 (real) Update RCA Ebitda now expected above the high end of the guidance, with higher oil prices and operational performance offsetting weaker refining margins Ebitda €2.1 - €2.2 bn €1.1 bn >€2.2 bn Solid CFFO an
Slide 12: Appendix
Appendix
Slide 13: 2Q19 E&P Stable production QoQ but better macro
2Q19 E&P Stable production QoQ but better macro Main E&P data 2Q18 1Q19 2Q19 2Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 Working interest production kboepd 108.1 112.6 111.7 Production in line QoQ, with Lula and Oil production kbpd 94.6 99.5 99.4 Kaombo South ramp-up offset by impact from Lula unit
Slide 14: 2Q19 R&M Challenging refining quarter but solid marketing contribution
2Q19 R&M Challenging refining quarter but solid marketing contribution Main R&M data 2Q18 1Q19 2Q19 2Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 Galp refining margin USD/boe 6.0 2.3 3.0 Raw materials processed down Refining cost USD/boe 2.2 2.4 2.3 10% YoY and refining margin of $3.0/boe driven by c
Slide 15: 2Q19 G&P Strong natural gas segment performance
2Q19 G&P Strong natural gas segment performance Main G&P data 2Q18 1Q19 2Q19 2Q19 w/o IFRS 16 IFRS 16 IFRS 16 w/o IFRS 16 NG/LNG total sales volumes mm3 1,892 1,963 1,887 NG/LNG volumes stable YoY, with Sales to direct clients mm3 1,133 1,149 1,205 increased sales to direct clients offset by lower L
Slide 16: Maintaining a solid financial position
Maintaining a solid financial position Balance sheet (€m) 31 Dec. 31 Mar. 30 Jun., 2018 2019 2019 Net fixed assets1 7,340 7,380 7,424 Cash generation during the first half Rights of use (IFRS 16) - 1,209 1,240 leads to net debt reduction of €139 m to €1,598 m. Working capital 814 811 782 2 Loan to S
Slide 17: galp.com
galp.com