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

Galp Energia, Sgps S.a. Class B — Galp Energia — Q3 2015 Earnings Presentation

23 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Oct 26, 2015

  1. Slide 1: Results Third Quarter 2015

    0 October 26, 2015 RESULTS THIRD QUARTER 2015 An integrated energy player focused on exploration and production THIRD QUARTER 2015 RESULTS

  2. Slide 2: Disclaimer

    DISCLAIMER 1 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 su

  3. Slide 3: Key Highlights

    KEY HIGHLIGHTS 2  Ebitda reached €411 m in Q3, benefitting from Galp Energia’s integrated model  Q3 working interest production increased to 45.7 kboepd with start-up of FPSO Cidade de Itaguaí and high productivity of Lula/Iracema  Production has now surpassed the 50 kboepd mark  Appraisal activ

  4. Slide 4: Agenda

    AGENDA 3 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX THIRD QUARTER 2015 RESULTS

  5. Slide 5: 3Q15: Gasoline Supporting Refining Margins

    3Q15: GASOLINE SUPPORTING REFINING MARGINS 4 Refining margins vs Brent price Iberian Market Growth ($/bbl) (kton, mmcm)  Crude oversupply pushed oil price down during Q3  Iberian oil market growing for 2 years in a row  Refining margins at a record level supported by US  Iberian natural gas mark

  6. Slide 6: Historical Milestone Achieved: Production of 50 kboepd

    HISTORICAL MILESTONE ACHIEVED: PRODUCTION OF 50 KBOEPD 5 Working Interest Production (kboepd) 4Q15 production drivers  Start of Lianzi production through a tie-back to the BBLT CPT  Additional producer wells in FPSO #3 and #4 FPSO #4 (CID. ITAGUAÍ) >50 FPSO #3 45.7 43.8 (CID. MANGARATIBA) 41.5 36.

  7. Slide 7: Lula/Iracema - FPSO#3: Productivity Above Expectations

    LULA/IRACEMA - FPSO#3: PRODUCTIVITY ABOVE EXPECTATIONS 6 FPSO CIDADE DE MANGARATIBA (#3) (150 kbopd)  Producing c.130 kbopd with four producer wells  FPSO started operations in October 2014 and should reach plateau during 4Q15, ahead of plan  5th producer to be connected during 4Q15 THIRD QUARTER

  8. Slide 8: Lula/Iracema: FPSO #4 With Two Producer Wells Connected

    LULA/IRACEMA: FPSO #4 WITH TWO PRODUCER WELLS CONNECTED 7 FPSO CIDADE DE ITAGUAÍ (#4) (150 kbopd)  Production started in July 2015, one quarter ahead of  Second producer well connected in October, with unit schedule through one producer well producing c.60 kbopd THIRD QUARTER 2015 RESULTS

  9. Slide 9: Lula/Iracema: FPSO #5 and #6 on Track

    LULA/IRACEMA: FPSO #5 AND #6 ON TRACK 8 FPSO CIDADE DE MARICÁ (#5) FPSO CIDADE DE SAQUAREMA (#6) (150 kbopd) (150 kbopd)  Topsides integration performed by BRASA/SBM at Mauá  Construction and integration works completed in Chengxi shipyard, in Brazil Shipyard (CXG) and it is expected to arrive in

  10. Slide 10: Executing Appraisal Activities in Brazil

    EXECUTING APPRAISAL ACTIVITIES IN BRAZIL 9 CARCARÁ BM-S-8 POTIGUAR BASIN  Carcará NW results confirmed the discovery of light oil  Pitú North appraisal well results to confirm extension of and the extension of the Carcará discovery discovery  DST preliminary activities in Carcará North started in

  11. Slide 11: Developing Upstream Portfolio in Africa

    DEVELOPING UPSTREAM PORTFOLIO IN AFRICA 10 BBLT CPT ROVUMA PROJECT  Platform turnaround and tie-back of Lianzi field to BBLT  Focus on the EPCIC proposals and LNG long term offtake CPT agreements negotiations for Coral FLNG project  Lianzi expected to start production during 4Q15  Progressing wi

  12. Slide 12: Improved Downstream & Gas Performance

    IMPROVED DOWNSTREAM & GAS PERFORMANCE 11 R&M G&P  Availability and reliability of refining system allowed  Trading activity supported by structured contracts and capture of strong refining margins environment network operations  Solid marketing performance  NG infrastructure and power businesses

  13. Slide 13: Agenda

    AGENDA 12 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX THIRD QUARTER 2015 RESULTS

  14. Slide 14: Ebitda of €411 m

    EBITDA OF €411 M 13 Profit & Loss RCA (€ m) 3Q14 2Q15 3Q15 QoQ YoY 9M15 YoY  Operating results benefited from improved Turnover 4,693 4,253 3,906 (8%) (17%) 12,082 (10%) European refining margins and marketing Ebitda 379 446 411 (8%) 9% 1,255 37% performance E&P 131 120 89 (26%) (32%) 304 (11%) R&M

  15. Slide 15: Capex of €256 m in 3Q15

    CAPEX OF €256 M IN 3Q15 14 Capital Expenditure (€ m) 314  E&P accounted for 87% of Group capex, of 313 G&P which development activities accounted for R&M 88% 256 E&P (D&P)  Downstream and gas capex mainly to maintenance, safety activities and Africa expansion E&P (E&A) 3Q14 2Q15 3Q15 E&A: Explorat

  16. Slide 16: Sound Capital Structure

    SOUND CAPITAL STRUCTURE 15 Balance Sheet (€ m)1 Sep.2015 Jun.2015 Dec.2014 Sep-Jun Sep-Dec  Working capital positively impacted by lower inventories Fixed and LT assets 7,638 7,778 7,599 (140) 39 Work in progress 2,016 2,093 1,768 (77) 248 Working capital 577 852 968 (275) (392)  Net debt of €1.6

  17. Slide 17: Agenda

    AGENDA 16 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX THIRD QUARTER 2015 RESULTS

  18. Slide 18: Concluding Remarks

    CONCLUDING REMARKS 17  Focus on Lula/Iracema project execution:  FPSO #1 and #2 at plateau  FPSO #3 and #4 in production ramp-up  FPSO #5 and #6 to be deployed in 1H16  Production of Lula/Iracema above expectations led to surpass the 50 kboepd milestone  Improved R&M results supported by highe

  19. Slide 19: Agenda

    AGENDA 18 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX THIRD QUARTER 2015 RESULTS

  20. Slide 20: E&P: Net Entitlement Production Up 56% YoY

    E&P: NET ENTITLEMENT PRODUCTION UP 56% YOY 19 Main E&P data 3Q14 2Q15 3Q15 QoQ YoY 9M15 YoY  Higher production in Brazil due to FPSO #4 earlier start-up and ramp-up of FPSO #3 Working interest production kboepd 31.8 43.8 45.7 4% 44% 43.7 53% Oil production kbopd 29.7 40.5 42.2 4% 42% 40.4 49% Net e

  21. Slide 21: R&M: Driven by Higher Refining Margins in International Market

    R&M: DRIVEN BY HIGHER REFINING MARGINS IN INTERNATIONAL MARKET 20 Main R&M data 3Q14 2Q15 3Q15 QoQ YoY 9M15 YoY  Premium to benchmark of $0.6/boe impacted by lower arbitrage opportunities between the Galp Energia refining margin USD/boe 4.7 7.3 6.7 (8%) 43% 6.6 n.m. US and Europe and fewer sourcing

  22. Slide 22: G&P: Impacted by Weaker LNG International Market

    G&P: IMPACTED BY WEAKER LNG INTERNATIONAL MARKET 21 Main G&P data 3Q14 2Q15 3Q15 QoQ YoY 9M15 YoY  Volumes sold increased YoY due to higher trading and electrical volumes NG supply total sales volumes mm3 1,682 1,869 1,909 2% 14% 5,973 7% Sales to direct clients mm3 966 919 933 2% (3%) 2,851 2% Tra

  23. Slide 23: Investor Relations team

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

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