Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q3 2009 Earnings Presentation
20 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Nov 12, 2009
Slide 1: Third Quarter and Nine Months 2009 Results
THIRD QUARTER AND NINE MONTHS 2009 RESULTS NOVEMBER 12 2009 Extending success into new challenges Investor Relations
Slide 2: Highlights
HIGHLIGHTS Third Quarter and Nine Months 2009 Results Investor Relations
Slide 3: Third Quarter and Nine Months 2009 Results Highlights
THIRD QUARTER AND NINE MONTHS 2009 RESULTS HIGHLIGHTS EXPLORATION & Crude price recovered, but still down 49% YoY PRODUCTION REFINING & Refining environment partially offset by marketing resilience MARKETING GAS & Continued recovery of natural gas supply margins POWER FINANCIALS Sound capital struct
Slide 4: 9M09 Net Profit of €179 Mln
9M09 NET PROFIT OF €179 MLN PROFIT & LOSS € Mln 3Q09 3Q08 9M09 ▪ Operating performance YoY QoQ YoY hurt by current economic Turnover 3,257 3,970 (18%) +14% 9,050 (21%) downturn EBITDA 191 282 (32%) +47% 472 (35%) E&P 28 51 (44%) (3%) 73 (58%) R&M 106 154 (31%) +153% 231 (15%) G&P 61 78 (22%) +19% 15
Slide 5: Signs of Recovery, but Environment Still Challenging
SIGNS OF RECOVERY, BUT ENVIRONMENT STILL CHALLENGING KEY OPERATING DATA ▪ OPEC quotas still 3Q09 3Q08 YoY QoQ 9M09 YoY impacting working interest production Working interest production kbbl/d 14.3 15.5 (8%) +7% 13.6 (9%) Net entitlement production kbbl/d 8.9 9.1 (2%) (4%) 8.9 (12%) Galp Energia refi
Slide 6: Business Overview
BUSINESS OVERVIEW Third Quarter and Nine Months 2009 Results Investor Relations
Slide 7: Crude Price Recovered, but Still Down 49% YoY
CRUDE PRICE RECOVERED, BUT STILL DOWN 49% YOY MAIN DATA E&P ▪ Production levels 3Q09 3Q08 YoY QoQ 9M09 YoY impacted by OPEC cuts Working interest production kbbl/d 14.3 15.5 (8%) +7% 13.6 (9%) Net entitlement production kbbl/d 8.9 9.1 (2%) (4%) 8.9 (12%) ▪ Tômbua-Lândana’s CPT Net entitlement produc
Slide 8: Refining Environment Partially Offset by Marketing Resilience
REFINING ENVIRONMENT PARTIALLY OFFSET BY MARKETING RESILIENCE MAIN DATA R&M ▪ Light/heavy crude spread 3Q09 3Q08 YoY QoQ 9M09 YoY narrowed in the quarter impacting premium to Galp Energia refining margin $/bbl 0.9 5.4 (83%) (43%) 1.6 (60%) benchmark Spread over benchmark $/bbl 0.9 2.8 (67%) (9%) 0.5
Slide 9: Continued Recovery of Natural Gas Supply Margins
CONTINUED RECOVERY OF NATURAL GAS SUPPLY MARGINS MAIN DATA G&P ▪ Natural gas volumes up 3Q09 3Q08 YoY QoQ 9M09 YoY 16% QoQ NG supply total sales volumes M m3 1,293 1,464 (12%) +16% 3,482 (21%) Liberalized markets sales volumes M m3 1,063 926 +15% +37% 2,326 (12%) ▪ Natural gas supply 745 891 (16%) +
Slide 10: Financial Overview
FINANCIAL OVERVIEW Third Quarter and Nine Months 2009 Results Investor Relations
Slide 11: 3Q09 Net Profit RCA of €78 Mln, Up 51% QoQ
3Q09 NET PROFIT RCA OF €78 MLN, UP 51% QoQ PROFIT & LOSS ▪ Financial results € Mln 3Q09 3Q08 YoY QoQ 9M09 YoY decreased with higher average net debt partially Turnover 3,257 3,970 (18%) +14% 9,050 (21%) offset by lower interest EBITDA 191 282 (32%) +47% 472 (35%) rates E&P 28 51 (44%) (3%) 73 (58%)
Slide 12: Capex Focused on Transformational Projects Execution
CAPEX FOCUSED ON TRANSFORMATIONAL PROJECTS EXECUTION ▪ E&P Angola’s capex CAPEX focused in Tômbua- G&P € Mln -Lândana’s development R&M works E&P 500 435 427 ▪ In Brazil, capex 400 channelled to Tupi field 300 211 ▪ Major portion of R&M 171 capex spent in conversion 200 project 100 ▪ Continued capex
Slide 13: Sound Capital Structure Maintained
SOUND CAPITAL STRUCTURE MAINTAINED FINANCIAL POSITION € Mln Sept. 2009 Jun. 2009 Sept - Jun Dec. 2008 Sept - Dec ▪ Amount in work in progress justified by Fixed assets 3,941 3,824 +117 3,881 +60 development phase of Work in progress 1,145 1,007 +138 868 +277 major projects Strategic stock 636 603 +3
Slide 14: Debt Reimbursement Call Focused After 2012
DEBT REIMBURSEMENT CALL FOCUSED AFTER 2012 Debt structure as of September 2009 64% 83% ▪ Net debt totalled €2.2 Bln 36% 17% ▪ Average M/L-term debt Floating Fixed Short-term M/L-term maturity of 4.1 years M/L-term M/L-term ▪ Average interest rate of 3.5% M/L-term debt reimbursement profile € Mln 1 1
Slide 15: Short Term Outlook
SHORT TERM OUTLOOK EXPLORATION & Positive impact in 4Q09 of Tômbua-Lândana’s CPT project production PRODUCTION REFINING & Refining outlook still uncertain and dependent on economic recovery MARKETING GAS & Sines Cogeneration started operations in early 4Q09 POWER FINANCIALS Capex of ≈ €700 mln in 20
Slide 16: E&P Transformational Projects
E&P TRANSFORMATIONAL PROJECTS Third Quarter and Nine Months 2009 Results Investor Relations
Slide 17: Ramp Up Production from Tômbua-Lândana's CPT
RAMP UP PRODUCTION FROM TÔMBUA-LÂNDANA’S CPT ▪ CPT production started in Tômbua-Lândana CPT August and will ram-up in the following months ▪ Expected production of 90 kbpd in 2010 ▪ Peak production of 100 kbpd to be reached by 2011 ▪ 3rd producing field in block 14, where Galp Energia holds a 9% sta
Slide 18: Tupi EWT Ongoing
TUPI EWT ONGOING ▪ The EWT has produced FPSO BW CIDADE SÃO VICENTE more than 1 Mboe with well flow rate limited to 20 kboepd ▪ Iracema’s DST almost completed with encouraging test results ▪ Tupi NE well is appraising the reservoir and logging is in progress ▪ Tupi P1 development well being drilled t
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: Third Quarter and Nine Months 2009 Results
THIRD QUARTER AND NINE MONTHS 2009 RESULTS NOVEMBER 12 2009 Tiago Villas-Boas Investor Relations Officer tiagovb@galpenergia.com T: +351 21 724 08 66 Extending success into new challenges www.galpenergia.com F: +351 21 724 29 65