Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q1 2009 Earnings Presentation
18 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, May 14, 2009
Slide 1: First Quarter 2009 Results
FIRST QUARTER 2009 RESULTS MAY 14 2009 Manuel Ferreira De Oliveira, CEO Extending success into new challenges Investor Relations
Slide 2: Highlights
HIGHLIGHTS First Quarter 2009 Results Investor Relations
Slide 3: First Quarter 2009 Results Highlights
FIRST QUARTER 2009 RESULTS HIGHLIGHTS EXPLORATION & Performance hit by lower crude price PRODUCTION REFINING & Sines refinery incident with a negative impact of €57 Mln in adjusted MARKETING EBITDA GAS & Economic environment impacted volumes sold POWER FINANCIALS EIB and syndicated loans guarantee m
Slide 4: Net Profit RCA of €49 Mln Impacted by Sines Refinery Incident
NET PROFIT RCA OF €49 MLN IMPACTED BY SINES REFINERY INCIDENT Profit & Loss ▪ Economic landscape € Mln 1Q09 1Q08 YoY 4Q08 QoQ shaping the demand side downwards Turnover 2,927 3,493 (16%) 3,579 (18%) EBITDA 151 234 (35%) 244 (38%) ▪ Setback with Sines E&P 15 54 (71%) 33 (53%) refinery incident with R
Slide 5: Iberian Acquisitions Underpinning Sales to Direct Clients
IBERIAN ACQUISITIONS UNDERPINNING SALES TO DIRECT CLIENTS ▪ Maintenance works and OPEC cuts KEY OPERATING DATA ▪ Crude processed 1Q09 1Q08 YoY 4Q08 QoQ significantly impacted by Working interest production kbbl/d 13.3 13.8 (4%) 15.5 (14%) fire at Sines refinery Net entitlement production kbbl/d 8.4
Slide 6: Business Overview
BUSINESS OVERVIEW First Quarter 2009 Results Investor Relations
Slide 7: E&P Performance Impacted by Lower Crude Price
E&P PERFORMANCE IMPACTED BY LOWER CRUDE PRICE MAIN DATA E&P 1Q09 1Q08 YoY 4Q08 QoQ Working interest production kbbl/d 13.3 13.8 (4%) 15.5 (14%) ▪ Lower working interest Net entitlement production kbbl/d 8.4 9.9 (15%) 9.7 (13%) production due to Net entitlement production M bbl 0.8 0.9 (16%) 0.9 (15%
Slide 8: Unexpected Incident at Sines Refinery Influenced Results
UNEXPECTED INCIDENT AT SINES REFINERY INFLUENCED RESULTS Sines refinery overview Incident ▪ On January 17, a fire occurred at the utilities plant of Sines refinery ▪ Complete shutdown until February 24, and FCC and alkylation units until end of March Impact ▪ Impact on less production and logistics
Slide 9: Sines Refinery Incident Hampered Better Results
SINES REFINERY INCIDENT HAMPERED BETTER RESULTS MAIN DATA R&M 1Q09 1Q08 YoY 4Q08 QoQ ▪ Galp Energia’s refining margin and level of crude Galp Energia refining margin $/bbl 2.8 3.0 (8%) 5.8 (51%) processed impacted by Spread over benchmark $/bbl 0.0 3.3 (101%) 1.2 (103%) incident at Sines refinery Cr
Slide 10: Weaker Demand Drove Volumes Down
WEAKER DEMAND DROVE VOLUMES DOWN MAIN DATA G&P ▪ Strong hydro hampered 1Q09 1Q08 YoY 4Q08 QoQ electrical segment sales NG supply total sales volumes M m3 1,075 1,471 (27%) 1,225 (12%) Liberalized markets sales volumes M m3 490 825 (41%) 586 (16%) ▪ Lower international Electrical and Trading M m3 414
Slide 11: Financial Overview
FINANCIAL OVERVIEW First Quarter 2009 Results Investor Relations
Slide 12: Net Profit RCA of €49 Mln Impacted by Refinery Incident
NET PROFIT RCA OF €49 MLN IMPACTED BY REFINERY INCIDENT Profit & Loss ▪ Lower crude price € Mln 1Q09 1Q08 YoY 4Q08 QoQ Turnover 2,927 3,493 (16%) 3,579 (18%) ▪ Lower NG volumes and depressed gas supply EBITDA 151 234 (35%) 244 (38%) margins E&P 15 54 (71%) 33 (53%) R&M 84 74 +13% 269 (69%) G&P 46 10
Slide 13: R&M Transformational Project Responsible for the Majority of Capex
R&M TRANSFORMATIONAL PROJECT RESPONSIBLE FOR THE MAJORITY OF CAPEX CAPEX ▪ E&P capex conducted to G&P € Mln operations in Block 14, R&M namely Tômbua-Lândana, E&P and Brazil onshore and 99 96 offshore ▪ Conversion refining project in line with schedule ▪ Main stake of G&P capex 1Q08 1Q09 channelled
Slide 14: Capital Structure Shaped by Investment Plan Execution
CAPITAL STRUCTURE SHAPED BY INVESTMENT PLAN EXECUTION CONSOLIDATED BALANCE SHEET ▪ One-off events at payables impacted net € Mln Mar. 2009 Dec. 2008 Change working capital: Fixed assets 3,698 3,881 (183) ▪ €195 Mln related to Strategic stock 595 480 +116 Iberian acquisitions Other assets (liabilitie
Slide 15: Interest Rate Risk Hedged by Higher Fixed Rate Weight
INTEREST RATE RISK HEDGED BY HIGHER FIXED RATE WEIGHT Debt structure as of March 2009 56% 71% ▪ Net debt totalled €2,143 Mln 44% 29% Floating Fixed Short-term M/L-term ▪ Average M/L-term debt M/L-term M/L-term maturity of 4.1 years ▪ Average interest rate of M/L-term debt reimbursement profile 3.47%
Slide 16: Outlook
OUTLOOK EXPLORATION & 2Q09 production to continue at current levels due to OPEC cut and Tômbua- PRODUCTION Lândana field to start-up in late 3Q09 REFINING & Sines refinery operating at normal conditions MARKETING GAS & Supply margins to open with decreasing effect of timing mismatch between POWER NG
Slide 17: Disclaimer
DISCLAIMER 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,” “estimate,” “will,” “may,” "continue," “should” and similar expres
Slide 18: First Quarter 2009 Results
FIRST QUARTER 2009 RESULTS MAY 14 2009 Tiago Villas-Boas Investor Relations Officer tiagovb@galpenergia.com T: +351 21 724 08 66 Extending success into new challenges www.galpenergia.com F: +351 21 724 29 65