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

Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2015 Earnings Presentation

21 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Apr 27, 2015

  1. Slide 1: Results First Quarter 2015

    0 April 27, 2015 RESULTS FIRST QUARTER 2015 An integrated energy player focused on exploration and production FIRST QUARTER 2015 RESULTS

  2. Slide 2: Disclaimer

    DISCLAIMER 1 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 su

  3. Slide 3: Focused management team committed to strategy execution

    FOCUSED MANAGEMENT TEAM COMMITTED TO STRATEGY EXECUTION 2 FIRST QUARTER 2015 RESULTS

  4. Slide 4: 1Q15 Key Highlights

    1Q15 KEY HIGHLIGHTS 3  Ebitda reached €398 m, benefitting from Galp Energia’s integrated business profile  Production increased to 41.5 kboepd with Lula/Iracema’s FPSO #1 and #2 at full capacity and ramp-up of FPSO #3  FPSO #4 on track to start operations in Iracema North by 4Q15 FIRST QUARTER 20

  5. Slide 5: Agenda

    AGENDA 4 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FIRST QUARTER 2015 RESULTS

  6. Slide 6: 1Q15: Low oil prices supported increase in consumption

    1Q15: LOW OIL PRICES SUPPORTED INCREASE IN CONSUMPTION 5 Refining margins vs Brent price Iberian Market Growth ($/bbl) (kton, mmcm) Benchmark refining margin (LHS) Brent (RHS) Oil Market, YoY NG Market, YoY 8.0 120 1,000 100 500 6.0 80 0 4.0 60 -500 2.0 40 -1,000 0.0 20 -1,500 -2.0 0 -2,000 1Q14 2Q1

  7. Slide 7: Lula/Iracema: FPSO #1 and #2 producing at plateau

    LULA/IRACEMA: FPSO #1 AND #2 PRODUCING AT PLATEAU 6 FPSO CIDADE DE ANGRA DOS REIS (#1) FPSO CIDADE DE PARATY (#2) (100 kbopd) (120 kbopd)  Plateau since June 2012  Plateau since September 2014  Average availability of c.95%  Average availability of c.95%  Five producer wells and four injector w

  8. Slide 8: Lula/Iracema: FPSO #3 and #4 on track to deliver production growth

    LULA/IRACEMA: FPSO #3 AND #4 ON TRACK TO DELIVER PRODUCTION GROWTH 7 FPSO CIDADE DE MANGARATIBA (#3) FPSO CIDADE DE ITAGUAÍ (#4) (150 kbopd) (150 kbopd)  Output of c.100 kbopd reached during 1Q15  Topside integration works progressing at Brasfels shipyard  4th producer well expected to be connect

  9. Slide 9: Developing Mozambique and Angola projects

    DEVELOPING MOZAMBIQUE AND ANGOLA PROJECTS 8 ROVUMA PROJECT BLOCK 14/14K (2.5 – 3 mtpa and 2x5 mtpa LNG trains – 1st phase)  World-class gas project being materialised  Steady contribution to Group’s production in 1Q15  FEED and EPCIC ongoing  Lianzi production expected to start during 2H15 throu

  10. Slide 10: Downstream & Gas: taking advantage of market dynamics

    DOWNSTREAM & GAS: TAKING ADVANTAGE OF MARKET DYNAMICS 9 Refining margins1 NG volumes ($/boe and $/bbl) (bcm) Benchmark refining margin ($/bbl) Galp Energia refining margin ($/boe) Sales to direct clients Trading 8 5.9 6 4.7 4.7 1.2 4 1.0 1.1 1.0 1.0 0.9 2 0.9 0 -2 (0.2) -4 1Q14 2Q14 3Q14 4Q14 1Q15 1

  11. Slide 11: Agenda

    AGENDA 10 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FIRST QUARTER 2015 RESULTS

  12. Slide 12: EBITDA of €398 m despite the fall in the oil price

    EBITDA OF €398 M DESPITE THE FALL IN THE OIL PRICE 11 Profit & Loss RCA (€ m) 1Q14 4Q14 1Q15 Turnover 4,125 4,470 3,923  Operating results benefited from improved European refining margins and higher LNG volumes sold Ebitda 265 399 398 E&P 104 102 94  Upstream Ebitda impacted by falling oil prices

  13. Slide 13: Capex amounting to €283 m in 1Q15

    CAPEX AMOUNTING TO €283 M IN 1Q15 12 Capital Expenditure (€ m) 366  E&P activities accounted for 96% of Group capex, of which Lula/Iracema represented c.58% 283  Exploration and appraisal capex mainly channelled to G&P 197 Brazil R&M  Downstream and gas capex allocated to maintenance E&P (D&P) an

  14. Slide 14: Sound capital structure

    SOUND CAPITAL STRUCTURE 13 Balance Sheet (€ m)1 Dec.2014 Mar.2015 Mar-Dec  Working capital positively impacted by lower oil Fixed and LT assets 7,599 7,830 +232 prices Work in progress 1,768 1,924 +156  Net debt of €1.4 bn considering loan to Sinopec as Working capital 968 863 (105) cash and equiv

  15. Slide 15: Agenda

    AGENDA 14 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FIRST QUARTER 2015 RESULTS

  16. Slide 16: Concluding remarks

    CONCLUDING REMARKS 15  Focus on Lula/Iracema project execution, with reservoir delivering ahead of expectations  Improved R&M and G&P performance and record E&P production  Strong financial position maintained  Management team fully committed to execute and enhance strategy in place FIRST QUARTE

  17. Slide 17: Agenda

    AGENDA 16 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX FIRST QUARTER 2015 RESULTS

  18. Slide 18: E&P: operational results impacted by current oil market environment

    E&P: OPERATIONAL RESULTS IMPACTED BY CURRENT OIL MARKET ENVIRONMENT 17 Main E&P data 1Q14 4Q14 1Q15  Higher production in Brazil, due to FPSO #3 ramp-up Working interest production kboepd 28.1 36.3 41.5 and FPSO #1 and #2 producing at plateau Oil production kbopd 26.9 34.0 38.4 Net entitlement prod

  19. Slide 19: R&M: recovery of refining margins drove better YoY performance

    R&M: RECOVERY OF REFINING MARGINS DROVE BETTER YOY PERFORMANCE 18 Main R&M data 1Q14 4Q14 1Q15  Premium to benchmark of $0.6/boe in the quarter Galp Energia refining margin USD/boe 0.9 4.7 5.9 impacted by planned partial outages in Sines and Refining cash cost 1 USD/boe 3.0 2.2 2.4 Matosinhos Raw m

  20. Slide 20: G&P: Ebitda up 7% YoY due to strong supply trading performance

    G&P: EBITDA UP 7% YOY DUE TO STRONG SUPPLY TRADING PERFORMANCE 19 Main G&P data 1Q14 4Q14 1Q15  Trading volumes increased on the back of higher NG supply total sales volumes mm3 2,078 1,885 2,195 contribution from LNG structured sales Sales to direct clients mm3 1,011 968 999 Trading mm3 1,067 917

  21. Slide 21: Investor Relations team

    Investor Relations team Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes Joana Pereira Results & presentation weblink : Marta Silva www.galpenergia.com/en/investidor/Relatorios-e- Pedro Pinto resultados/resultados-trimestrais +351 21 724 08 66 For further information on Galp Energia, please go to: Inve

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