Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — FY2010 Earnings Presentation
27 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Feb 11, 2011
Slide 1: Fourth Quarter and Full Year 2010 Results
Results FOURTH QUARTER AND FULL YEAR 2010 RESULTS February 11 2011 Extending success into new challenges
Slide 2: Key highlights
Key highlights Business overview Financial overview Short-term outlook Strategy execution update 2 Fourth Quarter and Full Year 2010 results
Slide 3: Key highlights
Key highlights ▪ EBITDA growth driven by improved overall operational performance ▪ 4Q10 net profit RCA growth of 16% to €40 Mln ▪ First commercial production from Lula field in Santos basin ▪ Significant reserves addition de-risking Galp Energia resources portfolio ▪ Increasing our Iberian downstre
Slide 4: Business overview
Key highlights Business overview Financial overview Short-term outlook Strategy execution update 4 Fourth Quarter and Full Year 2010 results
Slide 5: EBITDA growth driven by production from new projects
EBITDA growth driven by production from new projects Main E&P data ▪ Tupi and CPT Tômbua- 4Q10 4Q09 YoY QoQ 12M10 12M09 YoY -Lândana projects drove Working interest production kbbl/d 20.1 17.7 +14% +2% 19.5 14.7 +33% working interest production Net entitlement production kbbl/d 14.3 12.2 +17% +50% 1
Slide 6: Refining margin of $2.3/bbl in 4Q10, though impacted by Matosinhos outage
Refining margin of $2.3/bbl in 4Q10, though impacted by Matosinhos outage Main R&M data ▪ Premium over 4Q10 4Q09 YoY QoQ 12M10 12M09 YoY benchmark decreased in Galp Energia refining margin $/bbl 2.3 0.9 +145% +8% 2.6 1.5 +81% 4Q10 due to Matosinhos Spread over benchmark $/bbl 1.0 1.3 (21%) (35%) 1.5
Slide 7: Supply margins decrease driven by higher NG cost
Supply margins decrease driven by higher NG cost Main G&P data ▪ Natural gas supply 4Q10 4Q09 YoY QoQ 12M10 12M09 YoY volumes up 5% YoY NG supply total sales volumes M m3 1,340 1,198 +12% +3% 4,926 4,680 +5% Electrical M m3 465 392 +19% (24%) 1,939 1,918 +1% Industrial M m3 443 548 (19%) +7% 1,805 1
Slide 8: Financial overview
Key highlights Business overview Financial overview Short-term outlook Strategy execution update 8 Fourth Quarter and Full Year 2010 results
Slide 9: 4Q10 net profit RCA of €40 Mln, up 16% YoY
4Q10 net profit RCA of €40 Mln, up 16% YoY Profit & Loss (€Mln) ▪ EBIT increase driven by improved 4Q10 4Q09 YoY QoQ 12M10 12M09 YoY performance at R&M and G&P segments Turnover 3,538 2,911 +22% (1%) 13,998 11,960 +17% EBITDA 177 150 +18% (21%) 854 630 +36% E&P 56 39 +45% +50% 186 112 +66% ▪ E&P EBI
Slide 10: Transformational capex execution according to plan
Transformational capex execution according to plan Capital expenditure1 (€Mln) ▪ Santos basin driving E&P G&P R&M E&P capex growth 1,233 ▪ Upgrade refining project accounting for 50% of 730 2010 capex 369 295 ▪ Cogeneration at Matosinhos refinery accounting for most of 12M09 12M10 4Q09 4Q10 G&P cape
Slide 11: Key transformational projects capex execution driving net debt higher
Key transformational projects capex execution driving net debt higher Balance sheet (€Mln) Dec. 2010 Set. 2010 Dec - Set Dec. 2009 Dec - Dec ▪ Transformational projects leading to Fixed assets 5,426 5,122 +304 4,379 +1,047 increased work in Work in progress 1,981 1,684 +297 1,015 +966 progress, reac
Slide 12: Additional facilities of €1.2 Bln
Additional facilities of €1.21 Bln M/L-term debt reimbursement profile (€Mln) ▪ Reimbursement profile 1.000 aligned with cash flow 800 generation 600 400 200 ▪ Total net debt of €2.8 bln, with an average life of 3.1 0 2011 2012 2013 2014 +2015 years Debt structure as of December 2010 ▪ Average inter
Slide 13: Short-term outlook
Key highlights Business overview Financial overview Short-term outlook Strategy execution update 13 Fourth Quarter and Full Year 2010 results
Slide 14: Short-term Outlook
Short-term Outlook Exploration & 1Q11 crude production targeted at 20.0 kbopd Production Refining Depressed economic environment in Iberia and Sines refinery outage in & 1Q11 will impact operating performance Marketing Gas & 1Q11 NG volumes higher QoQ driven by electrical segment volumes Power Finan
Slide 15: Strategy execution update
Key highlights Business overview Financial overview Short-term outlook Strategy execution update 15 Fourth Quarter and Full Year 2010 results
Slide 16: Expected lower contribution from CPT Tômbua-Lândana
Expected lower contribution from CPT Tômbua-Lândana CPT Tômbua-Lândana ▪ 3rd producing field in block 14, where Galp Energia holds a 9% stake ▪ Technical revision and production in 2010 driving working interest reserves down ▪ Gross production in 2011 of around 60 kbbl/d 16 Fourth Quarter and Full Y
Slide 17: Lula/Cernambi declaration of commerciality already submitted
Lula/Cernambi declaration of commerciality already submitted FPSO Cidade de Angra dos Reis ▪ Total recoverable volume of 8.3 billion boe ▪ 9 FPSOs sanctioned for the Lula and Cernambi development ▪ FLNG FEEDs already concluded with final investment decision expected in 2011 17 Fourth Quarter and Ful
Slide 18: Total gross capacity of 1,270 kbbl/d in 2017
Total gross capacity of 1,270 kbbl/d in 2017 Gross FPSO production capacity (kbbl/d) 1500 1000 More 4 FPSOs for Lula and Cernambi Lula 3rd and 4th FPSOs 500 Cernambi 1st FPSO Lula 2nd FPSO Lula 1st FPSO 0 2010 2012 2014 2016 2018 2020 18 Fourth Quarter and Full Year 2010 results
Slide 19: Portfolio evolution allowing outstanding reserves addition
Portfolio evolution allowing outstanding reserves addition Reserves1 (Mln Boe) 574 397 ▪ Strong reserves addition in 2010 with BM-S-11 Development Plan 35 35 submission 2P 3P 2P 3P Gas 2009 2010 ▪ Lula and Cernambi fields Oil Contingent resources2 (Mln Boe) responsible for over 90% 3,065 of total re
Slide 20: Strong exploration resources addition in 2010
Strong exploration resources addition in 2010 ▪ Prospective resources Prospective Resources1 (Mln Boe) increase driven by exhaustive exploratory Gas work 2,550 Oil ▪ Potential of Galp Energia 1,640 portfolio not only in Santos basin ▪ Execution of intensive 2009 2010 drilling exploration programme t
Slide 21: Stringent upgrade project execution
Stringent upgrade project execution Upgrade project works ▪ Project execution on cost, with €970 mln invested until FY2010 ▪ Works at Matosinhos refinery ahead of original planned, with full production coming on stream in 2Q11 Works at Sines refinery New units at Matosinhos refinery ▪ Interconnectio
Slide 22: Marketing contribution supported by Spanish acquisitions
Marketing contribution supported by Spanish acquisitions Galp Energia service stations in Iberia More than 1,400 service stations and over 500 convenience stores in Iberia ensure high market coverage Market share of 50% in Portugal and 15% in Iberia Acquisitions in Spain allowed to obtain syne
Slide 23: Spanish NG acquisition to support further Iberian growth
Spanish NG acquisition to support further Iberian growth Galp Energia supply coverage in Madrid region ▪ Acquisition of Madrileña Gas, both regulated and liberalized activities, allows for further Iberian cash generation ▪ Sales of 115 Mm3 since May 2010, in a market where the demand is concentrated
Slide 24: Matosinhos refinery cogeneration to support NG volumes growth
Matosinhos refinery cogeneration to support NG volumes growth Works at Matosinhos refinery cogeneration ▪ New 82 MW cogeneration at Matosinhos refinery to start operations by 4Q2011 ▪ All main lead items have been procured, with the turbines and auxiliary equipment already installed ▪ Matosinhos ref
Slide 25: Galp Energia Capital Markets Day 2011
Galp Energia Capital Markets Day 2011 Rio de Janeiro, Brazil March 14, 2011 25 Fourth Quarter and Full Year 2010 results
Slide 26: 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 27: Results
Results FOURTH QUARTER AND FULL YEAR 2010 February 11 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