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

Galp Energia, Sgps S.a. Class B — Q1 2016 Earnings Presentation

19 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Apr 29, 2016

  1. Slide 1: Results First quarter 2016

    April 29, 2016 Results First quarter 2016

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 By attending or reading this presentation, you acknowledge and agree to be bound by the following limitations and restrictions. This presentation has been prepared by Galp Energia, SGPS, S.A. (“Galp” or the “Company”) and may be amended and supplemented, but may not be relied

  3. Slide 3: 1Q16 highlights

    1Q16 highlights 3  1Q16 Ebitda of €293 m, down 22% YoY, due to lower oil price and fewer opportunities in the NG/LNG markets  Hydrocracker planned maintenance during Q1  Working interest production of 56.3 kboepd, up 8% QoQ, due to increased contribution from FPSO #4 and start-up of FPSO #5 in Br

  4. Slide 4: Agenda

    Agenda 4 Execution Update Financial Overview Appendix First quarter 2016 results

  5. Slide 5: 1Q16: Challenging macro environment remains

    1Q16: Challenging macro environment remains 5 Brent price vs. refining margin ($/bbl) Iberian market evolution (kton, mm3) 100 8.0 1,000 80 6.0 0 60 4.0 -1,000 40 2.0 20 0.0 -2,000 1Q15 2Q15 3Q15 4Q15 1Q16 1Q12 1Q13 1Q14 1Q15 1Q16 Brent Benchmark refining margin (RHS) Oil Market, YoY NG Market, YoY

  6. Slide 6: Brazil: Production up 48% YoY and 10% QoQ

    Brazil: Production up 48% YoY and 10% QoQ 6 #1 Angra dos Reis - 100 kbopd #2 Paraty - 120 kbopd #3 Mangaratiba - 150 kbopd #4 Itaguaí - 150 kbopd  Unit produced steadily  1Q production affected  Five producers and five  Fourth producer during 1Q16 by maintenance works injectors connected connect

  7. Slide 7: Lula/Iracema: FPSO #5 start-up in February

    Lula/Iracema: FPSO #5 start-up in February 7 FPSO Cidade de Maricá (#5) – 150 kbopd  First producer connected with an average flow rate of c.33 kbopd  Second producer and first gas injector connected in April First quarter 2016 results

  8. Slide 8: Santos basin: Gas export through Cabiúnas started in March

    Santos basin: Gas export through Cabiúnas started in March 8 Existing gas export infrastructure FPSO #1 Already connected FPSO #2 Already connected FPSO #3 2Q16 FPSO #4 2Q16 FPSO #5 2H16 FPSO #6 2H16 First quarter 2016 results

  9. Slide 9: Developing Galp’s portfolio in Africa

    Developing Galp’s portfolio in Africa 9 Mozambique: Coral Angola: block 32 and block 14/14k Aguarda imagem revista  Focus on developing a robust FLNG solution for Coral  Block 32: drilling campaign in Kaombo and FPSO construction underway  Capex and opex improvement phase, and negotiating project

  10. Slide 10: Downstream and gas: resilient performance

    Downstream and gas: resilient performance 10 Refining & Marketing Gas & Power  Continuing to leverage arbitrage opportunities,  Trading activity supported by structured contracts, namely gasoline exports to the U.S. despite fewer opportunities in the international market  Hydrocracker stoppage du

  11. Slide 11: Agenda

    Agenda 11 Execution Update Financial Overview Appendix First quarter 2016 results

  12. Slide 12: First quarter Ebitda of €293 m, down 22% YoY

    First quarter Ebitda of €293 m, down 22% YoY 12 Profit & Loss RCA (€m) 1Q15 4Q15 1Q16 QoQ YoY  Lower results due to the Brent price decline and fewer opportunities in NG/LNG market Turnover 3,931 3,437 2,829 (18%) (28%) Ebitda 375 309 293 (5%) (22%)  R&M maintaining a positive contribution to E&P

  13. Slide 13: Group capex of €343 m during the quarter

    Group capex of €343 m during the quarter 13 Capital Expenditure (€m) 431  E&P accounted for 92% of Group capex, 343 mainly to development activities in block BM-S-11 (Brazil) and block 32 (Angola) 283 D&G  Downstream and gas capex of c.€26 m, including refining maintenance, natural gas E&P (D&P) i

  14. Slide 14: Maintaining solid capital structure

    Maintaining solid capital structure 14 Balance Sheet (€m)1 Mar.2016 Dec.2015 Mar-Dec  Working capital positively impacted by lower inventories Net fixed assets 8,077 7,892 +185 Work in progress 2,133 2,077 +56  Net debt of €1.8 bn considering loan to Working capital 369 510 (141) Sinopec as cash a

  15. Slide 15: Agenda

    Agenda 15 Execution Update Financial Overview Appendix First quarter 2016 results

  16. Slide 16: E&P: Net entitlement production up 39% YoY

    E&P: Net entitlement production up 39% YoY 16 Main E&P data 1Q15 4Q15 1Q16 QoQ YoY  Brazilian production increased YoY, mainly due to FPSO #4 and FPSO #3 ramp-up Working interest production1 kboepd 41.5 52.1 56.3 +8% +36% Oil production kbopd 38.4 48.9 52.9 +8% +38%  Angola NE in line YoY, with bl

  17. Slide 17: R&M: Resilient Ebitda despite lower margins and volumes sold

    R&M: Resilient Ebitda despite lower margins and volumes sold 17 Main R&M data 1Q15 4Q15 1Q16 QoQ YoY  Refining margin of $4.1/boe following the lower margins in the international market Galp refining margin USD/boe 5.9 4.1 4.1 (2%) (30%) Refining cash cost 1 USD/boe 1.8 1.9 2.0 +6% +10%  Sales to

  18. Slide 18: G&P: Ebitda down YoY on lower trading activity

    G&P: Ebitda down YoY on lower trading activity 18 Main G&P data 1Q15 4Q15 1Q16 QoQ YoY  Trading volumes down YoY, with fewer opportunities in the international market NG supply total sales volumes mm3 2,195 1,692 1,860 +10% (15%) Sales to direct clients mm 3 999 992 901 (9%) (10%)  Volumes sold to

  19. Slide 19: Investor Relations team

    Investor Relations team 19 Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes João G. Pereira Results & presentation weblink : João P. Pereira www.galpenergia.com/en/investidor/Relatorios-e- resultados/resultados-trimestrais +351 21 724 08 66 For further information on Galp, please go to: investor.relati

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