Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Investor Day (March 2012)
29 slides from Galp Energia, Sgps S.a. Class B's investor day presentation, Mar 6, 2012
Slide 1: Strategy overview
1| Strategy overview Manuel Ferreira De Oliveira Chief Executive Officer Capital Markets Day - March 6th 2012
Slide 2: Delivering on our strategy
Delivering on our strategy Solid foundations in place Ensuring sustainable and responsible growth Final remarks 2 | Capital Markets Day - March 6th 2012
Slide 3: Long-term performance delivering unique returns
Long-term performance delivering unique returns Total annualized shareholder return since the IPO1 17% 11% 7% 6% 3% 1% -1% -2% -5% -8% Galp Peers2 SXEP Energia 1 Annualized shareholder return, expressed in euros, from 2006/10/23 to 2011/12/31, including dividends payment 3 | Capital Markets Day - Ma
Slide 4: 2011: a year of delivery unlocking further growth
2011: a year of delivery unlocking further growth Commitment Delivery Status Creating value through increased Drilling in Rovuma basin far exceeding pre- focus in upstream drill estimates, turning Mozambique into a new core area Lula development on track, well ahead of expectations Downstream tr
Slide 5: Positioned for profitable growth
Positioned for profitable growth Focus on three Still the most Continuous Enhanced high prolific leveraged player downstream financial regions: Brazil, to the optimization to flexibility Mozambique outstanding maintain allowing for and Angola Santos basin in contribution to expansion Brazil earnings
Slide 6: Solid foundations in place
Delivering on our strategy Solid foundations in place Ensuring sustainable and responsible growth Final remarks 6 | Capital Markets Day - March 6th 2012
Slide 7: Increasing our upstream portfolio potential in 2011
Increasing our upstream portfolio potential in 2011 Intensive exploration activities led to the identification of new drilling targets World-class gas discovery in Rovuma basin, Mozambique First development steps taken in Lula field, Brazil, exceeding expectations 7 | Capital Markets Day - March 6th
Slide 8: Global E&P portfolio benefiting from distinctive capabilities
Global E&P portfolio benefiting from distinctive capabilities Regional focus 7 Portuguese Early movers 2 flavour 1 4 21 5 1 2 # of projects Core area Enduring Potential area relationships 8 | Capital Markets Day - March 6th 2012
Slide 9: Exploration focus to enhance and enlarge current portfolio
Exploration focus to enhance and enlarge current portfolio Exploration resources1 (Mln Boe) Still a lot to take from current high potential exploration portfolio + 11% 2,821 Looking to enlarge portfolio 2,550 Focus on high risk/high reward exploration areas Galp Energia to leverage on key di
Slide 10: Continuously adding resources and reserves to portfolio
Continuously adding resources and reserves to portfolio 3C contingent resources1 (Mln Boe) 3P reserves2 (Mln Boe) + 13% 2,672 2,356 + 24% 709 574 2010 2011 2010 2011 1 Working interest 3C resources 10 | Capital Markets Day - March 6th 2012 2 Net entitlement 3P reserves Source: DeGolyer and MacNaught
Slide 11: Building certainty on high-reward projects
Building certainty on high-reward projects WI production (kboepd) 300 + 70 + 21 2011 2015E 2020 target achievements Faster Lula development on 2011 Clear path outlined Ambition confirmed better reservoir data 11 | Capital Markets Day - March 6th 2012
Slide 12: Delivering profitable growth on current E&P portfolio
Delivering profitable growth on current E&P portfolio Strategic partnerships delivering outstanding value Exploration in core areas being intensified Enlarging exploration portfolio through new ventures Still a lot to know and to take from current Brazilian portfolio Resource base increase
Slide 13: Upstream growth supported by downstream sound foundations
Upstream growth supported by downstream sound foundations Refining & Marketing Gas & Power Total refining capacity 3rd player in Iberia Sourcing agreement of 245 MW of total of 330 kbpd 6 bcm of natural gas capacity installed by 1,502 service stations 2012 Nelson complexity of and 595 non fuel
Slide 14: Upgrade to increase refining profitability
Upgrade to increase refining profitability Galp Energia refining margin1 ($/bbl) Refining business fundamental to our integrated player strategy €1.4 Bln project to start generating returns from mid-2012 Range ≈ $2.5-$3.5/bbl Upgrade crucial considering the current refining environment 1.31 0.
Slide 15: Downstream businesses will face important challenges
Downstream businesses will face important challenges Refining & Marketing Gas & Power Guarantee successful integration of refining Maintain key competitive advantages in Iberia system Strengthen natural gas leading position by Deliver Sines post-upgrade steady production raising focus on tra
Slide 16: Balanced funding is a strategic pillar
Balanced funding is a strategic pillar Monetization of Brazilian assets enabling stronger capital structure Upstream Balanced early funding Robust downstream assets in rewards place and set to deliver sustained long-term earnings Upstream focus to start generating consistent cash-flow Sound an
Slide 17: Outstanding exploration potential
Exciting future ahead supported by robust fundamentals Outstanding Delivering Sound Solid exploration high downstream capital potential potential business structure projects Upstream profitable growth Balanced funding 17 | Capital Markets Day - March 6th 2012
Slide 18: Ensuring sustainable and responsible growth
Delivering on our strategy Solid foundations in place Ensuring sustainable and responsible growth Final remarks 18 | Capital Markets Day - March 6th 2012
Slide 19: Sustainability fully integrated into our strategic decision making process
Sustainability fully integrated into our strategic decision making process Getting the best from our people Placing safety at the heart of our operations Responsible approach allows for Growing with better energy higher competitiveness, corporate risk reduction and enables social development Giving
Slide 20: Getting the best from our people
Getting the best from our people Reservoir geoengineering advanced programme Leading highly skilled teams to deliver competitive performance Partnering with renowned Portuguese and Brazilian universities to implement innovative training programmes Promoting and developing expertise, namely in
Slide 21: Placing safety at the heart of our operations
Placing safety at the heart of our operations Safety performance Safety management showing continuous improvement, with Accidents resulting in work absence 1 industry-leading LTIFR Lost time injury frequency rate (LTIFR) 40 Integrated HSE management system 37 implemented in 2006 2.6 31 R&M 64%
Slide 22: Actively managing our environmental footprint
Actively managing our environmental footprint CO2 emissions (kton) Losses of containment index Downstream Upstream Tier 1 Tier 2 3,140 2,941 2.71 R&M 2.24 64% 0.87 0.35 2010 2011 Galp Energia CONCAWE Leaving a smaller environmental Ecological preservation guides our footprint, actively managing CO2
Slide 23: Growing with better energy
Growing with better energy Biofuels Energy efficiency Over 13,000 hectares planted with More than operating energy Palma in Brazil and around 1,000 efficiently, we educate towards a hectares with Jatropha in Mozambique more sustainable world 23 | Capital Markets Day - March 6th 2012
Slide 24: Giving back to society
Giving back to society End Hunger, Walk the World - Swaziland Sponsoring health initiatives that are vital to local communities Eradicating social exclusion Intensifying educative initiatives in Africa, namely through scholarships Taking action towards sustainable mobility in Portugal Acti
Slide 25: Galp Energia guided by sustainability
Galp Energia guided by sustainability Sustainability incorporated into strategy and our daily routines Galp Energia is a sustainable company, with related practices within the industry top 15% Highly sustainable practices are already a reality, but there’s still progress to be made Continuou
Slide 26: Final remarks
Delivering on our strategy Solid foundations in place Ensuring sustainable and responsible growth Final remarks 26 | Capital Markets Day - March 6th 2012
Slide 27: Solid foundations to deliver sustainable value
Solid foundations to deliver sustainable value Continuously delivering on our strategy Clearing the ground on a well defined strategic path Incorporating high responsible practices and leading our people further Creating shareholder value through key strategic pillars 27 | Capital Markets Da
Slide 28: Acronyms
Acronyms # Number GWh Gi ga Wa tt hour $ Uni ted States dol l a r HSE Hea l th, Sa fety a nd Envi ronment % Percentage IPO Ini tia l Publ i c Offeri ng 2D Two di mens i ona l s ei s mi c Kboepd Thous a nd ba rrel s of oi l equi va l ent per da y 3D Three di mens i ona l s ei s mi c Kbpd Thous a nd b
Slide 29: Disclaimer
Disclaimer Financial outlook figures are 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,”