Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q3 2013 Earnings Presentation
28 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Oct 28, 2013
Slide 1: Results: Third Quarter and Nine Months 2013
28 October 2013 Results THIRD QUARTER AND NINE MONTHS 2013 An integrated energy player focused on exploration and production
Slide 2: 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
Slide 3: Key highlights
Key highlights Strategy execution update Business overview Final remarks Appendix 3 Third quarter and nine months 2013 results
Slide 4: Key highlights
Key highlights ▪ Lula NE set to full capacity by 4Q14, however adverse weather conditions led to delay in installation of BSR1, impacting exit production for 2013 ▪ Proceeding with appraisal and development works in Lula field prior to the delivery of FPSO units ▪ Continuing to de-risk exploration p
Slide 5: Strategy execution update
Key highlights Strategy execution update Business overview Final remarks Appendix 5 Third quarter and nine months 2013 results
Slide 6: Paving the way for 10 FPSOs by 2017
Paving the way for 10 FPSOs by 2017 FPSO units in the Lula/Iracema field ▪ FPSO C. Paraty producing in Lula NE since Jun-13 and expected to reach full capacity by 4Q14, as planned ▪ FPSO to Iracema Sul 70% completed, on track to start production by 4Q14 ▪ Construction of next FPSO units progressing
Slide 7: Implementing gas export solutions and de-risking production ramp-up
Implementing gas export solutions and de-risking production ramp-up Gas export from the Lula field ▪ FPSO at Lula NE to be connected to the Lula-Mexilhão pipeline in 1Q14 ▪ Most of the pipes for the second pipeline, Cabiúnas, already manufactured and in Brazil ▪ Cabiúnas on track to be in place in 2
Slide 8: Ensuring a timely execution of Lula/Iracema project
Ensuring a timely execution of Lula/Iracema project Development wells in Lula/Iracema Execution rate Project Type of wells Total Planned Drilled In progress Lula 1 Producers 6 6 - FPSO Cidade de Angra dos Reis Injectors 3 3 - Lula NE Producers 8 4 1 FPSO Cidade de Paraty Injectors 6 5 - Iracema Sul
Slide 9: First BSR in Lula NE starts to be installed by December 2013
First BSR in Lula NE starts to be installed by December 2013 Lula NE subsea equipment Transportation of BSR to the Lula NE area Use of buoyancy supported risers expected to reduce equipment fatigue 9 Third quarter and nine months 2013 results Galp Energia; Petrobras, Banco de Imagens
Slide 10: FPSO Cidade de Paraty producing at 30 kbopd with only one producing well
FPSO Cidade de Paraty producing at 30 kbopd with only one producing well Lula NE milestones Schedule FPSO delivery May-13 Start of production Jun-13 Connection of injector well Aug-13 Connection of producer well1 (being evaluated) 4Q13 Installation of first BSR 1Q14 Connection to gas export pipeline
Slide 11: Increasing value at Lula/Iracema field
Increasing value at Lula/Iracema field WAG mechanism ▪ Continuing to test WAG, namely with first WAG injector already in gas cycle and to deliver results by 2014 ▪ Positive expectations about maintaining reservoir pressure, and impact on oil recoverability ▪ Drilling RDA wells in Lula/Iracema field
Slide 12: Bracuhy reinforces oil and condensates volumes in BM-S-24 development
Bracuhy reinforces oil and condensates volumes in BM-S-24 development Geological cross-section at BM-S-24 ▪ Relevant Bracuhy discovery with hydrocarbons gross column of 160 m, of which 100 m of oil ▪ Indications of connectivity between Bracuhy and Júpiter areas ▪ Re-evaluating Júpiter volumes, consi
Slide 13: Agulha-1 opened new alternatives for gas monetisation in Area 4
Agulha-1 opened new alternatives for gas monetisation in Area 4 Area 4 ▪ Mamba/Coral appraisal campaign concluded, with Area 4 total GIIP volumes of over 80 Tcf, of which over 30 Tcf in reservoir exclusively located in Area 4 ▪ Agulha-1 found indications of wet gas in the Cretaceous section ▪ Differ
Slide 14: Key data gathered in Potiguar and Namibia despite no commercial discoveries
Key data gathered in Potiguar and Namibia despite no commercial discoveries Potiguar basin Blocks in Namibian offshore ▪ Araraúna and Tango proved the existence of ▪ Potential for oil in the Namibian offshore was working hydrocarbon system proved ▪ Pitú, the third well drilled in this frontier basin
Slide 15: Business overview
Key highlights Strategy execution update Business overview Final remarks Appendix 15 Third quarter and nine months 2013 results
Slide 16: Ebitda flat at €312 m in 3Q13, given refining environment
Ebitda flat at €312 m in 3Q13, given refining environment Profit & Loss (€ m) ▪ Ebitda benefited from higher 3Q13 3Q12 YoY QoQ 9M13 YoY production in Brazil and stronger Turnover 5,808 4,925 +18% +26% 14,903 +4% LNG trading, although impacted Ebitda 312 310 +1% +3% 869 +9% by much worse refining E&P
Slide 17: Maintaining a robust financial position
Maintaining a robust financial position Balance sheet (€ m)1 ▪ Stable working capital, despite higher prices of oil and oil Sep.2013 Jun.2013 Sep - Jun Dec.2012 Sep - Dec products Non current assets 6.833 6.838 (4) 6.599 +235 Work in progress 1.397 1.377 +20 2.655 (1.258) Other assets (liabilities)
Slide 18: Continuing to execute funding strategy and extending maturities
Continuing to execute funding strategy and extending maturities Debt reimbursement profile (€ m) 800 ▪ Gross debt of €3.8 bn with an average maturity of 3.3 years 600 400 ▪ Average cost of debt1 of 4.4% 200 0 2013 2014 2015 2016 2017 2018 2019 2020+ ▪ Liquidity of €3.91 bn: Cash and Debt structure a
Slide 19: Short term outlook
Short term outlook ▪ 4Q13 WI production targeted at c.27 kboepd, as start of Lula Sul and Lula Central EWT should offset FPSO CAR constrained production due to maintenance at Mexilhão platform ▪ R&M business should continue to be impacted by adverse refining environment, despite expected slowdown in
Slide 20: Final remarks
Key highlights Strategy execution update Business overview Final remarks Appendix 20 Third quarter and nine months 2013 results
Slide 21: Final remarks
Final remarks ▪ Executing the Lula project is our number one priority, with focus on the second FPSO production ramp-up but also preparing works ahead ▪ Proceeding with important appraisal activities in the Santos basin, like Iara and Carcará ▪ Important results achieved so far with 2013 exploration
Slide 22: Save the date: Capital Markets Day 2014
SAVE THE DATE Galp Energia Capital Markets Day 2014 London, 4 March 2014
Slide 23: Appendix
Key highlights Strategy execution update Business overview Final remarks Appendix 23 Third quarter and nine months 2013 results
Slide 24: Net entitlement production increased 13% YoY driven by Lula NE ramp-up
Net entitlement production increased 13% YoY driven by Lula NE ramp-up Main E&P data ▪ Lula field with an average production of 12.8 kboepd, of 3Q13 3Q12 YoY QoQ 9M13 YoY which 2.3 kbopd from Lula NE Working interest production kboepd 25.8 25.9 (0%) +10% 24.3 (2%) Net entitlement production kboepd 2
Slide 25: Difficult refining environment impacted R&M results
Difficult refining environment impacted R&M results Main R&M data ▪ Hydrocracker fully operational in 3Q13, contributing with c.$2/bbl to refining margin in a tough 3Q13 3Q12 YoY QoQ 9M13 YoY refining environment Galp Energia refining margin USD/bbl 1.7 4.4 (62%) (52%) 2.3 (11%) Refining cash cost U
Slide 26: Robust LNG trading activity driving G&P Ebitda up 16% YoY
Robust LNG trading activity driving G&P Ebitda up 16% YoY Main G&P data ▪ Strong LNG trading activity, with record 13 cargoes sold in 3Q13, 3Q13 3Q12 YoY QoQ 9M13 YoY mainly to Latin America and Asia NG supply total sales volumes mm3 1,971 1,470 +34% +35% 5,149 +10% Sales to direct clients mm3 958 9
Slide 27: E&P activities accounted for c.85% of total capex in 3Q13
E&P activities accounted for c.85% of total capex in 3Q13 Capital expenditure (€ m) ▪ Exploration activities accounted for 46% of E&P capex in 3Q13, G&P namely in Brazil, Mozambique R&M and Namibia E&P - Production 728 E&P - Exploration 554 ▪ Development activities in BM-S- 11 accounted for c.€90 m,
Slide 28: Investor Relations contact
Investor Relations team Tiago Villas-Boas, Head Catarina Aguiar Branco Cátia Lopes Maria Borrega Pedro Pinto +351 21 724 08 66 Investor.relations@galpenergia.com For further information on Galp Energia, please go to: www.galpenergia.com Results & presentation weblink www.galpenergia.com/en/investido