Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Investor Day (March 2015)
87 slides from Galp Energia, Sgps S.a. Class B's investor day presentation, Mar 10, 2015
Slide 1: Capital Markets Day 2015
© galp energia Capital Markets Day 2015 An integrated energy player focused on exploration and production 10 March 2015 London, UK
Slide 2: Strategy overview
Strategy overview Manuel Ferreira De Oliveira Chief Executive Officer 2 Capital Markets Day – 10 March 2015
Slide 3: An integrated energy player focused on E&P
An integrated energy player focused on E&P Focus on executing sanctioned projects in a challenging market environment Explore project upsides and shift resources into reserves Cash improvements and integrated profile to sustain cash flow Financial discipline to maintain a solid capital structure 3 C
Slide 4: Setting the scene for value growth strategy
Setting the scene for value growth strategy Focusing on project execution and upstream sustainability Optimising downstream and gas businesses Galp Energia today, tomorrow and beyond 4 Capital Markets Day – 10 March 2015
Slide 5: 2014: Achieving upstream projects milestones…
2014: Achieving upstream projects milestones… Production ramp-up and Executing sanctioned Working to sanction new plateau extension projects projects Lula FPSO #1 producing at Start-up of Lula FPSO #3 Iara DoC submitted to ANP at plateau since 2012 according to schedule the end of 2014 Lula
Slide 6: … while increasing reserves from a significant resource base
… while increasing reserves from a significant resource base 2014 2P and 3P reserves 2014 2C and 3C contingent resources (mmboe) (mmboe) +10% YoY +18% YoY -10% YoY -11% YoY 3,496 1,672 833 638 2P 3P 2C 3C Brazil Angola Brazil Angola Mozambique 6 Capital Markets Day – 10 March 2015 Note: Net entitlem
Slide 7: 2014: Optimising downstream and gas businesses and corporate structure
2014: Optimising downstream and gas businesses and corporate structure Refining & Marketing Gas & Power Corporate Ongoing refining energy NG & LNG sales hit record Redesign of corporate centre by efficiency optimisation level of 7.5 bcm clusters of activities Launched innovative tri-fuel R
Slide 8: Volatility has returned to the oil market…
Volatility has returned to the oil market… Volatility of Brent vs. Galp Energia share price (monthly logarithmic returns) Brent annualised volatility 22% 11% 57% 30% 20% 10% 0% -10% -20% -30% Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 ICE Brent future Galp Energia 8
Slide 9: … but Galp Energia is well positioned to deliver growth
… but Galp Energia is well positioned to deliver growth Fundamentals Integrated player Profitable assets Unique features Volatility is inherent Integrated profile High quality Distinctive to the Oil & Gas represents a natural upstream portfolio capabilities, namely industry, but the hedge during the
Slide 10: Market dynamics will lead to industry rebase
Market dynamics will lead to industry rebase Recent developments What is happening Oil price hit near six year lows caused by Retreat of US tight oil supply in the oversupply short/medium term US unconventional production growth Capex cuts to curtail new supply and above expectations Market
Slide 11: Positive long-term outlook for oil and LNG, but refining environment challenging
Positive long-term outlook for oil and LNG, but refining environment challenging Global oil market Global LNG market European refining industry (mmbopd) (mtpa) (mmbopd) 100 400 15 10 50 200 5 0 0 0 2014 Decline Supply 2025E 2014 Decline Supply 2025E 2014 2025E supply increase demand supply increase
Slide 12: Integrated profile mitigates exposure to Brent across the value chain
Integrated profile mitigates exposure to Brent across the value chain Galp Energia volumes in 2014 Key takeaways (kboepd) 335 Unbalanced volumes allow for the compensation 265 between downstream margins versus upstream Managing volumes and margins across the entire value chain Positive cash fl
Slide 13: Galp Energia’s projects are highly competitive compared to other upstream plays
Galp Energia’s projects are highly competitive compared to other upstream plays Break even oil prices by different oil plays ($/bbl) 120 Oil sands Deep water 100 North America Extra heavy oil shale 80 80 61 54 54 57 60 Ultra-deep water break 53 48 even range Onshore Onshore 36 Russia 40 rest of the
Slide 14: Leverage on Galp Energia’s distinctiveness
Leverage on Galp Energia’s distinctiveness National flag Reputable Enduring Integrated carrier status partner partnerships position Like for like Knowledge and Access to network of Expertise across the Oil conversations with NOCs technical capabilities renowned operators, & Gas value chain and facil
Slide 15: Focused on E&P project execution, whilst optimising downstream and gas activities
Focused on E&P project execution, whilst optimising downstream and gas activities Upstream business Downstream and gas businesses Execute sanctioned Reinforce active Improve R&M Sustain LNG trading and de-risk pre- partner role and integration in the long term sanctioned projects operator position E
Slide 16: Setting the scene for value growth strategy
Setting the scene for value growth strategy Focusing on project execution and upstream sustainability Optimising downstream and gas businesses Galp Energia today, tomorrow and beyond 16 Capital Markets Day – 10 March 2015
Slide 17: Protect value by focusing on sanctioned projects execution
Protect value by focusing on sanctioned projects execution Net installed capacity (operating & sanctioned) Execution risk (kboepd) 250 Operating + + Sanctioned 4 replicant FPSO 200 for Lula/Iracema 150 2 FPSO for Kaombo 3 leased FPSO for 100 Lula/Iracema 50 5 producing units (3 in Lula/Irace
Slide 18: Production growth impacted by current context but potential upside remains
Production growth impacted by current context but potential upside remains Working interest production Portfolio highlights (kboepd) 400 Operating & sanctioned projects production CAGR 2014-20 ≈ 25% Pre-sanctioned projects Iara Carcará Júpiter Pitú Rovuma Area 4 Angola Block 14 0 Operati
Slide 19: Consolidate role as an active partner and strengthen operatorship capabilities
Consolidate role as an active partner and strengthen operatorship capabilities Active partner on non-operated projects Reinforce operatorship position Good partnership management with experienced Leverage on know-how acquired from reputable players operators Close follow-up of project developm
Slide 20: Exploration strategy in place
Exploration strategy in place Ongoing exploration activities in accordance with the Company’s profile and priorities Focus on basins and geographies where Galp Energia has competitive advantages Reinforce in-house exploration expertise Long-term value driven production growth through selecti
Slide 21: Setting the scene for value growth strategy
Setting the scene for value growth strategy Focusing on project execution and upstream sustainability Optimising downstream and gas businesses Galp Energia today, tomorrow and beyond 21 Capital Markets Day – 10 March 2015
Slide 22: Improve competitiveness and integration of R&M activities…
Improve competitiveness and integration of R&M activities… 2020 mid-cycle refining net cash margin 2014 marketing sales by geography ($/bbl) Margin relative position vs. sales volume (%) 4x 1st Quartile Africa Galp Energia Margin relative position Iberia 2nd Quartile 2x Focus on CIF 3rd Quartile vol
Slide 23: … to enhance returns of the business
… to enhance returns of the business R&M efficiency delivery Actions being taken (€m) ≈ €100 Increasing refineries’ energy efficiency Stepping up cost reduction program Leveraging refineries’ logistics flexibility ≈ €50 Improving refining and marketing integration Launching innovative comm
Slide 24: Iberian demand and flexible sourcing contracts support LNG trading activity
Iberian demand and flexible sourcing contracts support LNG trading activity NG and LNG portfolio in 2014 Evolution of NG & LNG sales (bcm) 4.6 4.0 4.1 3.8 3.7 3.0 2.2 0.7 2011 2012 2013 2014 Iberian sales LNG trading 24 Capital Markets Day – 10 March 2015
Slide 25: Building a sustainable NG and LNG portfolio
Building a sustainable NG and LNG portfolio Iberian NG Diversified and Access to High value stable outlet competitive sourcing infrastructure LNG sales Maintain a client Guarantee long-term Manage transport Guarantee scale of portfolio to support competitive and and storage capacity trading business
Slide 26: Setting the scene for value growth strategy
Setting the scene for value growth strategy Focusing on project execution and upstream sustainability Optimising downstream and gas businesses Galp Energia today, tomorrow and beyond 26 Capital Markets Day – 10 March 2015
Slide 27: Galp Energia corporate sustainability recognised internationally
Galp Energia corporate sustainability recognised internationally Acknowledgment DJSI benchmark score Room to improve (2014 points) 87 Ranked in the 93rd percentile in 77 Oil & Gas industry 3rd consecutive year at DJSI HSE objectives: 49 Work to take care of our people and guarantee that they
Slide 28: Investing in Research & Technology to make the most out of our assets
Investing in Research & Technology to make the most out of our assets E&P priority Close cooperation with Human capital distinctive programmes reputable universities development Production from fields with high CO2 content Carbonate reservoir management and EOR technology 14 R&T projects will
Slide 29: Strict corporate guidelines to support strategy in place
Strict corporate guidelines to support strategy in place Lower capex and optimisation of operational cost base Reducing break even under current environment Clear set of financial guidelines to support growth Maintain solid capital structure and net debt below 2x Ebitda Undergoing optimisation
Slide 30: ROACE target
Galp Energia today, tomorrow and beyond ROACE target (Consolidated ROACE vs. % capital employed in E&P) 25% Galp ambition 20% Consolidated ROACE (%) 15% Galp 2020+ 10% Peers average 5% Galp 2014 0% 0% 20% 40% 60% 80% 100% % capital employed in E&P 30 Capital Markets Day – 10 March 2015 Note: Peers a
Slide 31: Upstream growth
Upstream growth Thore E. Kristiansen Executive Director, E&P 31 Capital Markets Day – 10 March 2015
Slide 32: Focused strategy in place
Focused strategy in place Execute world class projects and secure profitable production growth De-risk pre-sanctioned projects and develop upside opportunities Disciplined capital allocation and managed exploration activity Reinforce active partner role and operatorship 32 Capital Markets Day – 10 M
Slide 33: Focused strategy in place
Focused strategy in place Sanctioned projects being developed Pre-sanctioned projects’ activities underway Selective 2015 exploration campaign Concluding remarks 33 Capital Markets Day – 10 March 2015
Slide 34: Strong portfolio pipeline…
Strong portfolio pipeline… Exploration Appraisal Pre-development Development Production Namibia Guanxuma Júpiter Tango Iara #1 to #3 Block 32 New Kaombo Lula/ Block Amazonas Iara ventures Iracema #2 14/14K Lula/ Pitú Coral Iracema #4 FLNG Carcará Morocco Alentejo Lula/ Lula/ Lula/ Iracema #3 Iracema
Slide 35: … with a large resource base in place
… with a large resource base in place 2014 2P reserves1 2014 2C resources1 (mmboe) (mmboe) Mozambique Angola Angola 638 1,672 Brazil Brazil 100% sanctioned projects 22% from sanctioned projects 1Working interest resources and net entitlement reserves. 35 Capital Markets Day – 10 March 2015 All figur
Slide 36: 3-year average RRR of 334%
3-year average RRR of 334% 1P reserves1 Reserve Replacement Ratio (RRR) (mmboe) (%) 232 551% 178 154 3-year average RRR of 334% 2012 2013 2014 2012 2013 2014 1Net entitlement reserves. 36 Capital Markets Day – 10 March 2015 All figures are based on DeGolyer and MacNaughton reports.
Slide 37: Yielding significant production growth
Yielding significant production growth Working interest production (kboepd) Developing existing portfolio IOR/EOR CAGR 2014-20 Exploration ≈ 25%-30% +24% +30%-35% 2013 2014 2015E 2020E Upside 2020+ Angola Brazil Sanctioned Pre-sanctioned 37 Capital Markets Day – 10 March 2015
Slide 38: Developing E&P team
Developing E&P team Increasing capabilities Evolution (# E&P professionals) 255 197 82 56 2006 2010 Jan-15 2015E 16 different nationalities Hiring, attracting and retaining highly qualified professionals Ensure the development of critical skills Around 150 corporate staff (FTE) dedicated to
Slide 39: Developing operating capabilities
Developing operating capabilities Successful operation in offshore Morocco Zero Lost Time Incidents On budget 39 Capital Markets Day – 10 March 2015
Slide 40: Focused strategy in place
Focused strategy in place Sanctioned projects being developed Pre-sanctioned projects’ activities underway Selective 2015 exploration campaign Concluding remarks 40 Capital Markets Day – 10 March 2015
Slide 41: Lula/Iracema: Solid track-record above initial expectations
Lula/Iracema: Solid track-record above initial expectations Production ramp-up FPSO Cid. de Paraty Lula NE (120 kbopd) Full capacity since Sep-14 Average availability of c.95% FPSO Cid. de Mangaratiba FPSO Cid. de Angra dos Reis Iracema South (150 kbopd) Lula Pilot (100 kbopd) Full capacity ex
Slide 42: Unitisation process underway
Unitisation process underway Lula/Iracema ▪ Unitisation negotiations underway with South of Tupi and an open area (PPSA) ▪ Working interest to be defined for the unitised areas with redetermination clauses ▪ Past costs and production to be adjusted between parties 42 Capital Markets Day – 10 March 2
Slide 43: Execution of a world-class project
Execution of a world-class project On track Executing mitigation measures Replicant Units2: 150 kbopd On track FPSO Cid. de Itaguaí 150 kbopd P-66 Lula South Iracema North First oil: 2017 First oil: 2H15 P-67 FPSO Cid. de Maricá Lula North 150 kbopd First oil: 2017 Lula Alto First oil: 1H16 P-68 L
Slide 44: Cost optimisation to support Lula/Iracema project profitability
Cost optimisation to support Lula/Iracema project profitability Drilling and completion (# days) 239 -21% YoY 170 135 125 92 2010 2013 2014 Target Best performance ▪ Benefitting from learning curve and ▪ Negotiating new rig rates optimised well design 44 Capital Markets Day – 10 March 2015
Slide 45: Significant oil recovery upside in Lula/Iracema project
Significant oil recovery upside in Lula/Iracema project Recovery factor (oil) (%) + 12 p.p. 40% Water injection/Gas injection 28% 4D seismic Additional production units Infill drilling WAG Subsea separation Technology development Current recovery factor Ambition Each 1 p.p. increase in
Slide 46: Angola: Mature block being complemented by Lianzi start-up
Angola: Mature block 14 being complemented by Lianzi start-up Block 14/14K ▪ Current producing fields (Kuito, BBLT and Tômbua-Landana) in declining phase ▪ Lianzi production expected to start in 2H15 through a tie-back to BBLT platform ▪ Developing cost reduction programmes ▪ Development studies for
Slide 47: Angola: Sanction of Kaombo project in 2014
Angola: Sanction of Kaombo project in 2014 Block 32 – Kaombo ▪ FID made in 2014 after an effective technical and contracting strategy revision allowing a capex reduction of c.20% ▪ Kaombo project being developed with 2 FPSO (2x125 kbopd) ▪ Potential for further cost reduction ▪ Start of production e
Slide 48: Focused strategy in place
Focused strategy in place Sanctioned projects being developed Pre-sanctioned projects’ activities underway Selective 2015 exploration campaign Concluding remarks 48 Capital Markets Day – 10 March 2015
Slide 49: Mozambique: World-class gas project being materialised
Mozambique: World-class gas project being materialised Area 4 ▪ Over 85 tcf GIIP identified ▪ Potential for economies of scale in onshore LNG project ▪ Focus on fit for purpose solutions and potential to reduce costs under current environment ▪ Supportive legal framework established at YE2014 49 Cap
Slide 50: Initial development phase being executed
Initial development phase being executed Coral FLNG Project – 1 FLNG (2.5-3 mtpa) ▪ Competitive FEED and EPCIC proposals expected to be submitted by the end of 2Q15 ▪ LNG offtake agreements under negotiation ▪ FID planned for 2015 Mamba Onshore LNG Project – 2x5 mtpa LNG trains (1st phase) ▪ Competi
Slide 51: Greater Iara: A multistage development for three separate accumulations
Greater Iara: A multistage development for three separate accumulations Berbigão/Sururu/Atapú ▪ Significant resource base in a challenging heterogeneous reservoir ▪ Continuous appraisal campaign ▪ Sururu development plan to be optimised after further appraisal ▪ PoD expected to be submitted in 2015
Slide 52: BM-S-8: De-risking development and potential upside
BM-S-8: De-risking development and potential upside Carcará ▪ High pressure and temperature reservoir in a high quality rock identified ▪ Current appraisal to test productivity and resource potential ▪ DoC submission extended until March 2018 ▪ Gas evacuation solution crucial for development 52 Capi
Slide 53: BM-S-24: Ongoing appraisal campaign for large base of resources
BM-S-24: Ongoing appraisal campaign for large base of resources Júpiter/Bracuhy ▪ Significant resource base of oil, condensates and gas mixed with CO2 ▪ Appraisal activity expected to de-risk reservoir and development concept ▪ Sequential development of oil and condensates as the base case ▪ Pilot p
Slide 54: Focused strategy in place
Focused strategy in place Sanctioned projects being developed Pre-sanctioned projects’ activities underway Selective 2015 exploration campaign Concluding remarks 54 Capital Markets Day – 10 March 2015
Slide 55: Potiguar: Pitú discovery to be appraised in 2015 with upside potential
Potiguar: Pitú discovery to be appraised in 2015 with upside potential Potiguar basin ▪ DST on oil accumulation confirmed good permeability and porosity ▪ Evaluation plan approved and one appraisal well and DST expected by 2015 ▪ One exploration well expected by 2015 ▪ First deepwater area expected
Slide 56: Managed 2015 exploration drilling activity
Managed 2015 exploration drilling activity Brazil: BM-S-8 Angola: Block 32 - CNE Portugal: Alentejo basin Guanxuma exploration well Colorau-3 well expected to be Partnership established with expected to be spudded by drilled in 4Q15 to de-risk further Eni, with first well expected to 4Q15 resources
Slide 57: Focused strategy in place
Focused strategy in place Sanctioned projects being developed Pre-sanctioned projects’ activities underway Selective 2015 exploration campaign Concluding remarks 57 Capital Markets Day – 10 March 2015
Slide 58: Committed to execute today and to deliver significant production growth
Committed to execute today and to deliver significant production growth Execution of world class projects Maximising value during development and production stages Maturing pre-sanctioned projects Focus on fit for purpose and cost effective solutions Managed exploration activity according
Slide 59: Appendix
Appendix 59 Capital Markets Day – 10 March 2015
Slide 60: Galp Energia reserves and resources portfolio
Galp Energia reserves and resources portfolio Reserves and resources (mmboe)1 Reserves 2013 2014 % Chg. 1P 178 232 31% 2P 579 638 10% 3P 707 833 18% Contingent resources 2013 2014 % Chg. 1C 319 332 4% 2C 1,853 1,672 (10%) 3C 3,923 3,496 (11%) Exploration resources 2013 2014 % Chg. Unrisked 2,495 1,6
Slide 61: 2015 exploration and appraisal drilling campaign
2015 exploration and appraisal drilling campaign Area Target E/A Interest Spud date Brazil1 BM-S-11 Iara RDA-4 A 10% 1Q15 BM-S-8 Carcará Extension-2 A 14% 1Q15 BM-S-8 Carcará Extension-1 A 14% 3Q15 BM-S-8 Guanxuma E 14% 4Q15 BM-S-24 Elida A 20% 2Q15 BM-S-24 Citera A 20% 4Q15 Potiguar Pitú-2 A 20% 2Q
Slide 62: Financial outlook
Financial outlook Filipe Silva Chief Financial Officer 62 Capital Markets Day – 10 March 2015
Slide 63: Resilient free cash flow amidst volatile market conditions
Resilient free cash flow amidst volatile market conditions Cash flow generation benefitting from integrated business model Lower capex and focus on world class upstream developments Committed to a robust financial position 63 Capital Markets Day – 10 March 2015
Slide 64: Lower capex and focus on higher margin projects
Lower capex and focus on higher margin projects Resilient free cash flow amidst lower oil prices Keeping a strong financial position Concluding remarks 64 Capital Markets Day – 10 March 2015
Slide 65: Reducing capex plan by €1.5 bn over the 2015-19 period
Reducing capex plan by €1.5 bn over the 2015-19 period Annual capex guidance ≈20% reduction ▪ Lower capex by adjusting pipeline of €1.5 bn - €1.7 bn development projects and improving D&G operations’ efficiency E&A €1.2 bn - €1.4 bn ▪ Upstream accounts for up to 90% of D&G capex, of which c.90% corr
Slide 66: E&P capex flexibility
E&P capex flexibility E&P: Committed vs. uncommitted capex E&P capex profile Committed Lula/Iracema Angola Total upstream capex E&A 2015 Lula/Iracema Uncommitted Other development projects Other projects E&A 2016-19 2014 2015E 2016E 2017E 2018E 2019E Around 40% of E&P capex planned for 2015-19 Devel
Slide 67: Lower capex and focus on higher margin projects
Lower capex and focus on higher margin projects Resilient free cash flow amidst lower oil prices Keeping a strong financial position Concluding remarks 67 Capital Markets Day – 10 March 2015
Slide 68: Upstream providing significant Ebitda growth even with lower oil price assumption
Upstream providing significant Ebitda growth even with lower oil price assumption Upstream Ebitda1 (€m) CAGR 2014-2019 > 35% ▪ 2015 upstream Ebitda expected to decrease YoY assuming Brent at $55/bbl ▪ Production ramp-up driving upstream Ebitda growth over time ▪ Revised oil price scenario and update
Slide 69: Technical costs driven by high margin projects
Technical costs driven by high margin projects Technical Costs1 ($/boe) ▪ Large scale of projects drives lower unit costs 27 ▪ High quality assets reduce capex ≈22 requirements ▪ Lifting costs in 2019 expected to be below $6/bbl 2014 2019E Lifting costs DD&A + Leasing costs 1Technical costs based on
Slide 70: Steady contribution from downstream and gas activities
Steady contribution from downstream and gas activities R&M Ebitda1 G&P Ebitda (€m) (€m) Power Infrastructure Natural Gas 500 800 250 400 0 0 2014 2015E 2016E 2017E 2018E 2019E 2014 2015E 2016E 2017E 2018E 2019E R&M Ebitda expected to benefit from G&P activities supporting Ebitda of €350 m - supporti
Slide 71: 2014-19 Ebitda CAGR of c.20% under new oil price assumptions
2014-19 Ebitda CAGR of c.20% under new oil price assumptions Group Ebitda1 (€m) CAGR ≈20% 1,314 2014 2015E 2016E 2017E 2018E 2019E 2015 Ebitda guidance of €1.1 bn - €1.3 bn, with integration providing a cushion to current low oil prices 1Based on a $55/bbl oil price in 2015 and reaching $80/bbl in t
Slide 72: Resilient cash flow from integrated business model
Resilient cash flow from integrated business model Free Cash Flow1 (€m) ▪ Integrated model stabilising free cash flow in a lower oil price environment 500 ▪ Group expected to turn free cash flow 0 positive during 2018 and Brazil in 2017 ▪ Under a flat $60/bbl Brent price scenario -500 (low case), Gr
Slide 73: Lower capex and focus on higher margin projects
Lower capex and focus on higher margin projects Resilient free cash flow amidst lower oil prices Keeping a strong financial position Concluding remarks 73 Capital Markets Day – 10 March 2015
Slide 74: Extending reimbursement profile to match expected cash flow generation
Extending reimbursement profile to match expected cash flow generation Current debt reimbursement profile (€m) 1,000 500 0 2014 2015 2016 2017 2018 2019 2020 2021+ Bank Loans Private Placements Public Bonds Profile @ December 31 2013 c.70% of debt maturing from 2018 onwards 74 Capital Markets Day –
Slide 75: Current liquidity sufficient for the next three years
Current liquidity sufficient for the next three years Sources and uses 2015-2017 (€bn) 8 ▪ Net debt to Ebitda2 peaking at c.2x throughout 2016, and falling quickly thereafter Available liquidity1 ▪ Brazil fully funded with own equity Capex 4 sources Post-tax ▪ Unchanged dividend policy3 cash flow De
Slide 76: Lower capex and focus on higher margin projects
Lower capex and focus on higher margin projects Resilient free cash flow amidst lower oil prices Keeping a strong financial position Concluding remarks 76 Capital Markets Day – 10 March 2015
Slide 77: Galp Energia: well supported growth strategy
Galp Energia: well supported growth strategy Annual capex down 20% to €1.2 bn - €1.4 bn during 2015-19 period Selective capital allocation Focused on the development of highest margin projects Ebitda CAGR 2014-19 of c.20% Resilient cash flow Free cash flow to become positive during 2018 Su
Slide 78: Appendix
Appendix 78 Capital Markets Day – 10 March 2015
Slide 79: Outlook
Outlook Galp Energia assumptions 2015E 2016E 2017E 2018E 2019E Brent price ($/bbl) 55 65 70 75 80 Refining margin benchmark1 ($/bbl) 3.0 2.6 2.5 2.4 2.2 EUR:USD 1.20 1.20 1.20 1.20 1.20 Key operational targets 2015E Medium/long term Working Interest production growth 30% - 35% CAGR 2014-20 ≈ 25% to
Slide 80: 2015-19 business plan sensitivities
2015-19 business plan sensitivities Ebitda sensitivities Approximate impact in Approximate annual Change 2015 medium/long term impact Brent price $10/bbl €100 m €350 m Refining margin benchmark1 $1/bbl €90 m €80 m EUR:USD 0.10 (€70 m) (€200 m) 1Benchmark refining margin = 42.5% cracking margin + 45.
Slide 81: Key indicators on Galp Energia’s debt
Key indicators on Galp Energia’s debt YE2013 YE2014 Gross debt €3.7 bn €3.7 bn Cash and equivalents €1.5 bn €1.1 bn Net debt €2.2 bn €2.5 bn Net debt considering loan to Sinopec €1.3 bn €1.6 bn Net debt to Ebitda ratio1 1.1x 1.2x Available credit lines €1.2 bn €1.2 bn Average life of debt 3.6 yr 3.7
Slide 82: Closing remarks
Closing remarks Manuel Ferreira De Oliveira Chiel Executive Officer 82 Capital Markets Day – 10 March 2015
Slide 83: An integrated player well positioned to manage volatility and deliver growth
An integrated player well positioned to manage volatility and deliver growth Executing profitable upstream projects in current challenging environment Unlocking additional resources to create value and sustain production growth Reducing capex and improving opex efficiency to support cash flow genera
Slide 84: © galp energia
© galp energia
Slide 85: A focused and experienced management team
A focused and experienced management team Chief Executive Officer Manuel Ferreira Over 40 years of international De Oliveira and oil industry experience Deputy CEO & COO COO Gas & Power / COO Exploration & Chief Corporate Officer / Chief Corporate Officer Chief Financial Officer Refining & Marketing
Slide 86: Acronyms
Acronyms # Number DJSI Dow Jones Sustainability Indices m Millions ≈ Approximately DoC Declaration of Commerciality mmbpd Million barrels per day % Percentage DST Drill Stem Test mmboepd Million barrels of oil equivalent per day & And E Exploration mmbbl Million barrels € Euros E&A Exploration and A
Slide 87: Disclaimer
Disclaimer RCA figures except otherwise noted. 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 Energia” or the “Company”) and may be amended and supp