Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q2 2022 Earnings Presentation
20 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 25, 2022
Slide 1: 2Q22 Results
2Q22 RESULTS July 25, 2022 1 2Q22 Results
Slide 2: Disclaimer
Disclaimer This document may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholder returns; liquidity; capital and operating expenditures; performance levels, operational or environmental goals, targets or commitmen
Slide 3: Recent developments
01 Recent developments 2Q22 overview 3 2Q22 Results
Slide 4: 2Q22 highlights
2Q22 highlights Strong performance from successful capture of current market environment € 1,244 m € 488 m RCA Ebitda FCF Significant OCF growth across all business segments € 964 m € 2.2 bn € 1.5 bn Excl. margin accounts Working capital build (macro) Adj. OCF 1 Net debt partially offset by reversal
Slide 5: 2Q22: Upstream
2Q22: Upstream Robust contribution despite increased maintenance activities 120 kboepd Quarter highlights Outlook WI Production -7% YoY Production reflecting higher Keeping FY22 production 111 $/bbl 52 $/boe concentration of maintenance guidance Oil Gas realisations1 realisations1 Coral Sul FLNG seq
Slide 6: 2Q22: Commercial
2Q22: Commercial Ongoing recovery trend despite price environment 1.9 mton Quarter highlights Outlook Oil products sales +22% YoY Oil volumes sold supported by 3Q22 volumes to continue to 1.5 k demand gradual recovery benefit from seasonal effects although pressured by high EV charging points +27% Y
Slide 7: 2Q22: Industrial & Energy Management
2Q22: Industrial & Energy Management Refining performance driving increased contribution 22.3 $/boe Quarter highlights Outlook Refining margin (inc. energy and CO2 costs) Continually improving High products’ cracks 23 mboe ~100 % operational and safety performance environment likely to persist durin
Slide 8: 2Q22: Renewables & New Businesses
2Q22: Renewables & New Businesses Strong performance supported by increased renewable installed capacity 687 GWh Quarter highlights Outlook Renewable generation +45% YoY Strong generation increase Keeping 1.4 GW installed QoQ mostly supported by capacity target at YE22 1.2 GW seasonality with new pr
Slide 9: Acquiring full ownership of solar Titan JV
Acquiring full ownership of solar Titan JV to further support growth and value enhancement options Titan key data Galp’s total renewable portfolio 1.2 GW Acquisition of Cobra’s 25% stake in Titan JV for €140 m 1.15 GW Operating solar capacity 0.4 GW Adjusting pipeline by selectively 1.6 GW targeting
Slide 10: Executing our distinctive investment proposition
Executing our distinctive investment proposition to thrive through the energy transition Growth from Growth from Competitive shareholder established businesses low carbon businesses distribution Delivering on Coral start-up and Ensuring operating capacity build Share buyback €150 m programme executi
Slide 11: Financial overview
02 Financial overview 2Q22 results 11 2Q22 Results
Slide 12: 2Q22: Strong operational results across all business units
2Q22: Strong operational results across all business units Upstream 878 m 597 m 133 m € 1,244 m High cash contribution from increased oil & gas realisations € RCA Ebitda 1 € OCF € Net capex2 and despite higher maintenance 2Q22 Group RCA Ebitda Commercial Contribution reflecting seasonal € 97 m € 91
Slide 13: 2Q22: RCA Ebitda of €1.2 bn driven by favourable macro conditions
2Q22: RCA Ebitda of €1.2 bn driven by favourable macro conditions 2Q22 P&L (€ m) RCA Ebit reflecting non-cash impairment of €85 m related with exploration assets in Brazil 62 (346) Associates up YoY reflecting higher 1,244 contribution from renewables 924 (295) (79) Mark-to-market1 of €-331 m includ
Slide 14: Strong operational cash generation supporting deleverage
Strong operational cash generation supporting deleverage 2Q22 Cash flow (€ m) Inc. c.€200 m Strong OCF supported by Upstream and reversal from gas derivatives Refining activities 305 (522) Macro led working capital build partially offset by c. €200 m roll off in natural gas derivatives exposure (244
Slide 15: 2022 full year outlook
2022 full year outlook Adjusting guidance to reflect 1H22 performance and macro outlook Upstream Expected distributions related c.€ 4.0 bn to 2022 fiscal year Ebitda of c.€3 bn, with FY22 WI production guidance unchanged c.€2.9 bn 1/3 OCF Commercial Total distributions (Base dividend + Buybacks) Kee
Slide 16: Appendix
03 Appendix galp.com
Slide 17: Macro assumptions and sensitivities
Macro assumptions and sensitivities Macro assumptions 2H22 Brent price c.$90/bbl Galp refining margin c.$15/boe Solar captured price c.130 EUR:USD c.1.06 2022 sensitivities (€ m) Change Ebitda OCF Brent price $5/bbl 160 90 Galp refining margin $1/boe 75 65 EUR:USD 0.05 90 60 17 2Q22 Results
Slide 18: Key guidance for 2022
Key guidance for 2022 Operational indicators (no changes) Financial indicators Upstream RCA Ebitda € bn c.4.0 WI production kboepd Flat YoY Upstream € bn c.3.0 Upstream production costs $/boe <3 Commercial €m c.300 Commercial Industrial & Energy Management €m >700 Oil products sales to direct client
Slide 19: Q&A
Q&A 19 2Q22 Results
Slide 20: galp.com
galp.com