Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2010 Earnings Presentation
20 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, May 6, 2010
Slide 1: Results First Quarter 2010
Results FIRST QUARTER 2010 May 6 2010 Extending success into new challenges
Slide 2: First quarter results highlights
First quarter results highlights Business overview Financial overview Short‐term outlook Strategy execution update 2 First Quarter 2010 Results
Slide 3: First Quarter Results Highlights
First Quarter Results Highlights Exploration & Production increased driven by Tômbua‐Lândana and Tupi Production Refining & Economic environment in Iberia hurt Marketing results Marketing Gas & Recovery of supply margins in liberalized market Power Financials 1Q10 net profit RCA of €65 mln (+32% YoY
Slide 4: Business overview
First quarter results highlights Business overview Financial overview Short‐term outlook Strategy execution update 4 First Quarter 2010 Results
Slide 5: Production increased driven by Tômbua-Lândana and Tupi
Production increased driven by Tômbua‐Lândana and Tupi Main E&P data 1Q10 1Q09 YoY 4Q09 QoQ ▪ Continued ramp up of Working interest production kbbl/d 18.5 13.3 +39% 17.7 +5% Tômbua‐Lândana Net entitlement production kbbl/d 12.7 8.4 +51% 12.2 +4% production Net entitlement production M bbl 1.1 0.8 +5
Slide 6: Economic environment in Iberia hurt Marketing results
Economic environment in Iberia hurt Marketing results Main R&M data 1Q10 1Q09 YoY 4Q09 QoQ ▪ Recovery of refining Galp Energia refining margin $/bbl 2.7 2.8 (3%) 0.9 +186% margins QoQ, but still Spread over benchmark $/bbl 1.2 (0.2) n.m. 1.3 (6%) affected by current Crude processed M bbl 22.2 13.3 +
Slide 7: Recovery of supply margins in liberalized market
Recovery of supply margins in liberalized market Main G&P data ▪ Recovery of NG volumes 1Q10 1Q09 YoY 4Q09 QoQ and supply margins NG supply total sales volumes M m3 1,179 1,075 +10% 1,198 (2%) Liberalized markets sales volumes M m3 824 490 +68% 882 (7%) Electrical and Trading M m3 469 414 +13% 523 (
Slide 8: Financial overview
First quarter results highlights Business overview Financial overview Short‐term outlook Strategy execution update 8 First Quarter 2010 Results
Slide 9: 1Q10 net profit RCA of €65 mln (+32% YoY)
1Q10 net profit RCA of €65 mln (+32% YoY) Profit & Loss (€Mln) 1Q10 1Q09 YoY 4Q09 QoQ ▪ Financial expenses Turnover 3,290 2,927 +12% 2,911 +13% impacted by higher EBITDA 177 154 +15% 150 +18% debt, partially offset E&P 48 15 +213% 39 +26% by lower interest R&M 66 85 (23%) 62 +6% rates G&P 61 48 +28%
Slide 10: Capex mainly channeled to upgrade project
Capex mainly channeled to upgrade project Capital expenditure (€Mln) G&P R&M ▪ E&P capex focused in E&P Tupi’s development works 192 ▪ Upgrade project 96 responsible for around 80% of the R&M capex 1Q09 1Q10 ▪ New 82 MW +100% cogeneration at Porto’s refinery contributed to G&P investment 10 First Qu
Slide 11: Net Debt increased due to capex and net working capital
Net Debt increased due to capex and net working capital Consolidated balance sheet (€Mln) Mar. 2010 Dec. 2009 Change ▪ €1.1 Bln allocated to fixed assets not yet Fixed assets 4,562 4,379 +183 generating return Work in progress 1,145 1,015 +130 Strategic stock 619 575 +44 Other assets (liabilities) (
Slide 12: Major debt reimbursement starting in 2011
Major debt reimbursement starting in 2011 Debt structure as of March 2010 57% 83% ▪ Net debt totalled €2.2 Bln 43% 17% Fixed Floating ▪ Average M/L‐term debt Short‐term M/L‐term M/L‐term M/L‐term maturity of 4.1 years M/L‐term debt reimbursement profile (€Mln) ▪ Average interest rate of 600 3.2% 400
Slide 13: Short-term outlook
First quarter results highlights Business overview Financial overview Short‐term outlook Strategy execution update 13 First Quarter 2010 Results
Slide 14: Short-term Outlook
Short‐term Outlook Exploration & Tômbua‐Lândana’s 2Q10 production will continue to ramp up Production Refining & Still cautious refining margin environment Marketing Gas & Recent Spanish NG acquisition to contribute from 2Q10 onwards Power Current liquidity position of €1.5 Bln to support medium ter
Slide 15: Strategy execution update
First quarter results highlights Business overview Financial overview Short‐term outlook Strategy execution update 15 First Quarter 2010 Results
Slide 16: Development of Tupi ongoing
Development of Tupi ongoing FPSO Cidade de Angra dos Reis ▪ Recent wells, Tupi NE and OW confirm high reservoir quality ▪ Intensive drilling program during 2010 ▪ Construction of 216 km NG pipeline already started and to be concluded in July ▪ 100 kbpd FPSO on time to start operations by 4Q2010 16 F
Slide 17: Upgrade project in line with schedule
Upgrade project in line with schedule Works at Sines’ refinery ▪ Equipment with longest delivery items (Hydrocracker reactors) already on site and installed ▪ Works progress according to plan ▪ All critical equipment & contracts already awarded 17 First Quarter 2010 Results
Slide 18: Acquisition in Madrid recently completed
Acquisition in Madrid recently completed Natural gas supply customers in Madrid ▪ Increase leverage in natural gas supply in a market 8x bigger than Portugal ▪ Provides a base for further growth in the Spanish market ▪ Around 0.4 bcm per annum incremental natural gas volumes and 400 thousand new cli
Slide 19: 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 20: Results First Quarter 2010
Results FIRST QUARTER 2010 May 6 2010 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