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

Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2018 Earnings Presentation

18 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Apr 27, 2018

  1. Slide 1: Results First Quarter 2018

    RESULTS FIRST QUARTER 2018 April 27, 2018 Investor Relations

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 By attending or reading this presentation, you acknowledge and agree presentation must not be acted or relied on by persons who are not impossible to predict and are beyond its control. No assurance, however, to be bound by the following limitations and restrictions. This Rele

  3. Slide 3: Agenda

    Agenda 3 Key Highlights Operational Performance Financial Performance Appendix First quarter 2018 results

  4. Slide 4: 1Q18 highlights

    1Q18 highlights 4  Cash flow from operations of €245 m driven by upstream production growth, despite weaker downstream and USD depreciation  Upstream performance benefiting from higher oil prices and production ramp-up in Brazil  Downstream impacted by weaker refining margins and maintenance, des

  5. Slide 5: Agenda

    Agenda 5 Key Highlights Operational Performance Financial Performance Appendix First quarter 2018 results

  6. Slide 6: Brazilian developments driving production growth

    Brazilian developments driving production growth 6 Lula and Iracema Other pre-salt projects  Production up QoQ, benefiting from Lula ramp-up with  Iara: Start of an EWT in Sururu SW to optimise the FPSO #7 now at plateau development plan of the area  Two additional units to come onstream during 2

  7. Slide 7: Kaombo project on track for first oil this year

    Kaombo project on track for first oil this year 7 Angola  FPSO to develop Kaombo North sailed away from Singapore during 1Q18 and is currently on location  Drilling campaign proceeding at good pace, with 26 out of 59 wells already drilled  Production from block 14/14K declining as expected First

  8. Slide 8: Downstream impacted by lower refining margins

    Downstream impacted by lower refining margins 8 Refining & Marketing Gas & Power  Benchmark margins and Sines hydrocracker planned  Natural gas activity benefited from increased sales to maintenance driving lower refining results industrial clients and European hubs gas prices  Iberian oil demand

  9. Slide 9: Agenda

    Agenda 9 Key Highlights Operational Performance Financial Performance Appendix First quarter 2018 results

  10. Slide 10: 1Q18 Ebitda of €455 m, up 17% YoY

    1Q18 Ebitda of €455 m, up 17% YoY 10 Profit & Loss RCA (€m) 1Q17 4Q17 1Q18  Upstream Ebitda driven by production growth and higher realisation prices, despite USD Turnover 3,843 3,689 3,891 depreciation Ebitda 388 476 455 E&P 179 296 293  Downstream impacted by lower refining R&M 183 144 122 resul

  11. Slide 11: Capex of €146 m in the quarter

    Capex of €146 m in the quarter 11 Capital Expenditure (€m)  Around 80% of total investment in 1Q18 allocated to E&P, of which Brazil accounted 360 for c.68%  Block C-M-791 signature bonus of c.$33 m (net to Galp) to be paid later this year 201 146  Downstream capex mostly allocated to maintenance

  12. Slide 12: Positive FCF during 1Q18 despite working capital build

    Positive FCF during 1Q18 despite working capital build 12 Change in net debt (€m) 1Q17 4Q17 1Q18  Working capital investment of €159 m, mainly driven by the increase in commodity prices Ebit + DD&A 455 538 496 Taxes paid (81) (70) (92)  CFFO up YoY driven by upstream Dividends received from Associ

  13. Slide 13: Strong financial position

    Strong financial position 13 Balance Sheet (€m)1 31 Dec., 31 Dec., Var. vs 31  Net fixed assets down QoQ driven by US dollar 31 Mar., Dec., and Brazilian real depreciation against the Euro 2017 2017 2018 2017 (reported) (restated - SEM) (restated) Net fixed assets 7.565 7.231 7.099 (132)  Net debt

  14. Slide 14: Agenda

    Agenda 14 Key Highlights Operational Performance Financial Performance Appendix First quarter 2018 results

  15. Slide 15: E&P: Higher realisations partially offset by FX effects

    E&P: Higher realisations partially offset by FX effects 15 Main E&P data1 1Q17 4Q17 1Q18  Average daily production up 3% QoQ on the back of unit #7 ramp-up and fewer Working interest production2 kboepd 88.0 101.2 104.1 maintenance activities Oil production kbpd 76.9 88.6 91.6 Net entitlement produc

  16. Slide 16: R&M: Impacted by macro conditions and maintenance

    R&M: Impacted by macro conditions and maintenance 16 Main R&M data 1Q17 4Q17 1Q18  Planned maintenance of Sines HC impacting raw materials processed and cash costs Galp refining margin USD/boe 5.1 4.9 3.3 Spread over benchmark margin USD/boe 1.6 1.4 1.5  Robust spread over benchmark, benefiting Re

  17. Slide 17: G&P: Benefiting from higher volumes and European hub prices

    G&P: Benefiting from higher volumes and European hub prices 17 Main G&P data 1Q17 4Q17 1Q18  Volumes in line YoY but up QoQ, with higher sales to industrial clients offsetting lower NG/LNG total sales volumes mm3 2,006 1,899 1,975 traded volumes Sales to direct clients mm3 1,149 1,109 1,225 Trading

  18. Slide 18: First quarter 2018 results

    18 First quarter 2018 results

Galp Energia — Q1 2018 Earnings Presentation on 6ix