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

Galp Energia, Sgps S.a. Class B — Galp Energia — Q2 2015 Earnings Presentation

24 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 27, 2015

  1. Slide 1: Results Second Quarter 2015

    0 July 27, 2015 RESULTS SECOND QUARTER 2015 An integrated energy player focused on exploration and production SECOND 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 €446 m, benefitting from Galp Energia’s integrated business profile with strong results in Downstream & Gas  Q2 production increased to 43.8 kboepd with ramp-up of FPSO Cidade de Mangaratiba in Lula/Iracema  FPSO Cidade de Itaguaí production to start soon at Irace

  4. Slide 4: Agenda

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

  5. Slide 5: 2Q15: Oil and Gasoline Support Refining Margins

    2Q15: OIL AND GASOLINE SUPPORT REFINING MARGINS 4 Refining margins vs Brent price Iberian Market Growth ($/bbl) (kton, mmcm)  Oil price in the $55-65/bbl range  Iberian oil market growing YoY for seven consecutive quarters  Strong US gasoline demand and crude oversupply kept refining margins high

  6. Slide 6: Lula/Iracema: FPSO #4 Production to Start One Quarter Ahead of Schedule

    LULA/IRACEMA: FPSO #4 PRODUCTION TO START ONE QUARTER AHEAD OF SCHEDULE 5 FPSO CIDADE DE ITAGUAÍ (#4) (150 kbopd)  Production to start soon at Iracema North, with one  12 wells already drilled producer well already connected SECOND QUARTER 2015 RESULTS

  7. Slide 7: Lula/Iracema: Performance Above Expectations

    LULA/IRACEMA: PERFORMANCE ABOVE EXPECTATIONS 6 FPSO CID. ANGRA DOS REIS (#1) FPSO CID. PARATY (#2) FPSO CID. MANGARATIBA (#3) (100 kbopd) (120 kbopd) (150 kbopd)  Plateau since June 2012  Plateau since September 2014  Producing c.130 kbopd with four producer wells  5th producer well to be connec

  8. Slide 8: Lula/Iracema: FPSO #5 and #6 On Track to Start Operations During 1H16

    LULA/IRACEMA: FPSO #5 AND #6 ON TRACK TO START OPERATIONS DURING 1H16 7 FPSO CIDADE DE MARICÁ (#5) FPSO CIDADE DE SAQUAREMA (#6) (150 kbopd) (150 kbopd)  FPSO at Mauá shipyard, in Brazil, for topsides integration  Sail away from China towards Mauá shipyard expected in to be performed by BRASA/SBM

  9. Slide 9: Lula/Iracema: Executing Mitigation Measures

    LULA/IRACEMA: EXECUTING MITIGATION MEASURES 8  Gas/CO2 injection and compression modules awarded in May  New contracts with lower execution risk and neutral impact on cost and on Galp’s expected delivery timing REPLICANTS (150 kbopd) SECOND QUARTER 2015 RESULTS

  10. Slide 10: Berbigão/Sururu/Atapu: Development Activities Underway

    BERBIGÃO/SURURU/ATAPU: DEVELOPMENT ACTIVITIES UNDERWAY 9  Development plans of Atapu, Berbigão and Sururu fields submitted to ANP in June  Three FPSO replicant units: Atapu South and Atapu North in 2018 and Berbigão/Sururu in 2019  Pilot tie-back of Sururu to Atapu North FPSO expected by BERBIGÃO

  11. Slide 11: Activities in Remaining Santos Basin Projects

    ACTIVITIES IN REMAINING SANTOS BASIN PROJECTS 10 CARCARÁ BM-S-8 JÚPITER BM-S-24  Carcará North appraisal well concluded in July, confirming  Reviewing current appraisal program, with Elida and the extension of the discovery Citera wells postponed  DST to be performed during 2H2015  Focus on matu

  12. Slide 12: Developing Mozambique LNG Project

    DEVELOPING MOZAMBIQUE LNG PROJECT 11 CORAL PROJECT MAMBA PROJECT (2.5 mtpa – 3 mtpa) (2x5 mtpa LNG trains – 1st phase)  FEED and EPCIC proposals received for FLNG project  Onshore development project progressing  LNG long term offtake agreements at advanced stage of  Advanced unitisation negotia

  13. Slide 13: Downstream & Gas: Strong Performance

    DOWNSTREAM & GAS: STRONG PERFORMANCE 12 Refining margins NG volumes ($/boe and $/bbl) (bcm) Benchmark refining margin ($/bbl) Galp Energia refining margin ($/boe) Sales to direct clients Trading 8.0 7.3 1.2 5.9 1.0 1.0 0.9 1.0 6.0 0.8 4.7 4.7 4.0 2.0 0.9 0.0 (0.2) 2Q14 1Q15 2Q15 -2.0 -4.0 1Q14 2Q14

  14. Slide 14: Agenda

    AGENDA 13 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX SECOND QUARTER 2015 RESULTS

  15. Slide 15: Ebitda of €446 m Supported by Higher Production and Refining Margins

    EBITDA OF €446 M SUPPORTED BY HIGHER PRODUCTION AND REFINING MARGINS 14 Profit & Loss RCA (€ m) 2Q14 1Q15 2Q15 QoQ YoY 1H15 YoY  Operating results benefited from improved Turnover 4,615 3,923 4,253 8% (8%) 8,176 (6%) European refining margins and higher Ebitda 271 398 446 12% 64% 844 57% production

  16. Slide 16: Capex of €313 m in 2Q15

    CAPEX OF €313 M IN 2Q15 15 Capital Expenditure (€ m)  E&P accounted for 91% of Group capex, of 313 which development activities accounted for 283 266 89% G&P R&M E&P  Downstream and gas capex mainly to (D&P) maintenance and safety activities E&P (E&A) 2Q14 1Q15 2Q15 E&A: Exploration & Appraisal SE

  17. Slide 17: Sound Capital Structure

    SOUND CAPITAL STRUCTURE 16 Balance Sheet (€ m)1 Jun.2015 Mar.2015 Dec.2014 Jun-Mar Jun-Dec  Working capital positively impacted by lower inventories Fixed and LT assets 7,778 7,830 7,599 (52) 180 Work in progress 2,093 1,924 1,768 169 325 Working capital 851 863 968 (12) (117)  Net debt of €1.5 bn

  18. Slide 18: Agenda

    AGENDA 17 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX SECOND QUARTER 2015 RESULTS

  19. Slide 19: Concluding Remarks

    CONCLUDING REMARKS 18  Focus on Lula/Iracema project execution with production ramping-up faster than expected  Monitor closely the execution of next FPSOs with some critical contracts being replaced  Improved R&M performance, record E&P production and solid trading activity  Stronger financial

  20. Slide 20: Agenda

    AGENDA 19 EXECUTION UPDATE FINANCIAL OVERVIEW CONCLUDING REMARKS APPENDIX SECOND QUARTER 2015 RESULTS

  21. Slide 21: E&P: Net Entitlement Production Up 87% YoY

    E&P: NET ENTITLEMENT PRODUCTION UP 87% YOY 20 Main E&P data 2Q14 1Q15 2Q15 QoQ YoY 1H15 YoY  Higher production in Brazil due to FPSO #3 start- up and FPSO #1 and #2 at plateau Working interest production kboepd 25.7 41.5 43.8 6% 71% 42.7 59% Oil production kbopd 24.5 38.4 40.5 6% 65% 39.4 53% Net e

  22. Slide 22: R&M Supported by Refineries Availability and Higher Refining Margins

    R&M SUPPORTED BY REFINERIES AVAILABILITY AND HIGHER REFINING MARGINS 21 Main R&M data 2Q14 1Q15 2Q15 QoQ YoY 1H15 YoY  Refining margin benefited from recovery of European margins and sourcing optimisation Galp Energia refining margin USD/boe (0.2) 5.9 7.3 24% n.m. 6.6 n.m. 1 Refining cash cost USD/

  23. Slide 23: G&P Impacted by Lower LNG Trading Volumes

    G&P IMPACTED BY LOWER LNG TRADING VOLUMES 22 Main G&P data 2Q14 1Q15 2Q15 QoQ YoY 1H15 YoY  Sales to direct clients up YoY, mainly on increased volumes sold to the electrical NG supply total sales volumes mm3 1,826 2,195 1,869 (15%) 2% 4,064 4% segment Sales to direct clients mm3 814 999 919 (8%) 1

  24. Slide 24: Investor Relations team

    Investor Relations team Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes Joana Pereira Results & presentation weblink : Marta Silva 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: Inve

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