Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2011 Earnings Presentation
23 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Apr 29, 2011
Slide 1: Results First Quarter 2011
Results FIRST QUARTER 2011 April 29 2011 Extending success into new challenges
Slide 2: Agenda
Key highlights Business overview Strategy execution update Final remarks Appendix 2 First Quarter 2011 results
Slide 3: Key highlights
Key highlights ▪ Sines refinery planned outage and depressed economic environment in Iberia drove EBITDA decrease ▪ Net profit in 1Q11 reached €41 Mln, down 36% YoY ▪ FPSO Cidade de São Vicente already on stream in Lula NE performing the EWT ▪ Upgrade works at Matosinhos refinery at final stage ▪ Im
Slide 4: Business overview
Key highlights Business overview Strategy execution update Final remarks Appendix 4 First Quarter 2011 results
Slide 5: Operational activity impacted by Sines refinery planned outage
Operational activity impacted by Sines refinery planned outage Key operating data ▪ Net entitlement production 1Q11 1Q10 YoY 4Q10 QoQ impacted by PSA effects Average realized sale price $/bbl 93.3 70.9 +31% 80.0 +17% Net entitlement production kbbl/d 9.6 12.7 (24%) 14.3 (33%) ▪ Refining margin follo
Slide 6: 1Q11 net profit RCA of €41 Mln, down 36% YoY
1Q11 net profit RCA of €41 Mln, down 36% YoY Profit & Loss (€Mln) ▪ EBITDA decrease 1Q11 1Q10 YoY 4Q10 QoQ driven by lower R&M Turnover 3,796 3,290 +15% 3,538 +7% contribution EBITDA 135 177 (24%) 177 (24%) E&P 48 48 (2%) 56 (15%) R&M 22 66 (66%) 69 (68%) ▪ DD&A increase YoY G&P 61 61 (1%) 50 +22% d
Slide 7: Transformational capex execution according to plan
Transformational capex execution according to plan Capital expenditure1 (€Mln) G&P ▪ Lula development R&M responsible for most of E&P E&P capex 302 ▪ Upgrade refining project 192 accounting for c.70% of 1Q11 capex ▪ G&P capex channelled for natural gas infrastructure expansion 1Q10 1Q11 +58% 1 Does
Slide 8: Net debt increase driven by transformational capex execution
Net debt increase driven by transformational capex execution Balance sheet (€Mln) Mar. 2011 Dec. 2010 Change ▪ Increase in strategic stock as prices of crude and oil Fixed assets 5,621 5,426 +195 products rose Work in progress 2,115 1,981 +134 Strategic stock 1,149 792 +358 Other assets (liabilities
Slide 9: Short term outlook
Short term outlook ▪ 2Q11 working interest production targeted at c.21 kbopd ▪ Still cautious refining outlook ▪ Depressed economic environment in Iberia shall continue impacting marketing volumes ▪ 2Q11 natural gas volumes down QoQ due to normal seasonality ▪ Transformational capex execution ongoin
Slide 10: Strategy execution update
Key highlights Business overview Strategy execution update Final remarks Appendix 10 First Quarter 2011 results
Slide 11: Intensive exploration and appraisal activity
Intensive exploration and appraisal activity Country Area 2011 ▪ Formation tests ongoing 1Q 2Q 3Q 4Q on Iara Horst, drilled in Brazil Lula 1A Cernambi 1A 1Q11 Iara 1A 1A BM-S-8 1E 1E BM-S-24 1A BM-ES-31 1E ▪ Block 32 appraisal well Potiguar 1E on casing works Angola Block 14 1A 1A Block 32 1A Block
Slide 12: Lula/Cernambi development on track
Lula/ Cernambi development on track FPSO Cidade de Angra dos Reis ▪ First gas injection well already connected to FPSO Cidade de Angra dos Reis ▪ FPSO Cidade de São Vicente already on stream in Lula NE performing the EWT ▪ Gas pipeline already installed and onshore gas plant in Caraguatatuba to star
Slide 13: Upgrade works will be finished during 2011
Upgrade works will be finished during 2011 Matosinhos refinery ▪ Upgrade project at Matosinhos refinery almost concluded with the installation of the vacuum visbreaker ▪ Planned c.350 interconnections of new units at Sines refinery for 1Q11 successfully completed ▪ Project execution on cost, with c.
Slide 14: Continuing working to a solid capital structure
Continuing working to a solid capital structure NG infrastructure E&P Brazil Transaction Sale of up to 49% of a holding Capital increase at subsidiary level of company with a RAB1 of c. €900Mln c.€2 Bln Status Non binding proposals already Selected advisory partners received Binding offers expected
Slide 15: Final remarks
Key highlights Business overview Strategy execution update Final remarks Appendix 15 First Quarter 2011 results
Slide 16: Final remarks
Final remarks ▪ Funding solutions being executed to reach a sustainable and solid capital structure ▪ Upgrade project to be concluded before YE2011, shifting capex profile from downstream to upstream activities ▪ Continuous focus on exploration and development activities to support sustained upstrea
Slide 17: Appendix
Key highlights Business overview Strategy execution update Final remarks Appendix 17 First Quarter 2011 results
Slide 18: EBITDA stable YoY, benefiting from higher realized sale price
EBITDA stable YoY, benefiting from higher realized sale price Main E&P data 1Q11 1Q10 YoY 4Q10 QoQ ▪ Working interest production increased YoY driven by Working interest production kbbl/d 19.0 18.5 +3% 20.1 (6%) Tômbua-Lândana field Net entitlement production kbbl/d 9.6 12.7 (24%) 14.3 (33%) Angola
Slide 19: EBITDA impacted by Sines outage and lower volumes sold
EBITDA impacted by Sines outage and lower volumes sold Main R&M data 1Q11 1Q10 YoY 4Q10 QoQ ▪ Premium over benchmark increased in Galp Energia refining margin $/bbl 1.3 2.7 (51%) 2.3 (43%) 1Q11 due to heavy/light Spread over benchmark $/bbl 1.8 1.2 +46% 1.0 +74% Crude processed M bbl 13.6 22.2 (39%)
Slide 20: EBITDA stable YoY, supported by higher natural gas supply volumes
EBITDA stable YoY, supported by higher natural gas supply volumes Main G&P data 1Q11 1Q10 YoY 4Q10 QoQ ▪ Recovery of NG volumes, NG supply total sales volumes M m3 1,605 1,178 +36% 1,340 +20% driven by higher electrical Electrical M m3 502 355 +41% 465 +8% NG generation Industrial M m3 483 529 (9%)
Slide 21: Additional facilities of €1.01 Bln
Additional facilities of €1.01 Bln M/L-term debt reimbursement profile (€Mln) 1.000 ▪ No major reimbursement 800 in 2011 600 400 ▪ Total net debt of €3.1 Bln, 200 with an average life of 2.6 0 2011 2012 2013 2014 +2015 years Debt structure as of March 2011 ▪ Average interest rate of 3.70%, up 51 b.p
Slide 22: 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 23: Results First Quarter 2011
Results FIRST QUARTER 2011 April 29 2011 Extending success into new challenges TIAGO VILLAS-BOAS tiagovb@galpenergia.com www.galpenergia.com INVESTOR RELATIONS OFFICER T: +351 21 724 08 66 F: +351 21 724 29 65