Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q3 2020 Earnings Presentation
20 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Oct 26, 2020
Slide 1: 3Q20 Results
3Q20 RESULTS October 26 2020 galp (©)
Slide 2: Cautionary Statement
—— CAUTIONARY STATEMENT This document may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholder returns; liquidity; capital and operating expenditures; performance levels, operational or environmental goals, targets
Slide 3: Recent Developments
RECENT DEVELOPMENTS Carlos Gomes da Silva, CEO
Slide 4: Galp's Robust Performance
GALP’S ROBUST PERFORMANCE WHILE STILL NAVIGATING THROUGH CHALLENGING MACRO CONDITIONS Delivering from highly competitive businesses and increased operational resilience Spanish 2.9 GW solar PV transaction completion Focus on business performance and controlling financial position 3Q20 CFFO 3Q20 FCF
Slide 5: Upstream Performance
—— UPSTREAM PERFORMANCE STABLE OPERATIONS WHILST DEVELOPING FUTURE 3Q20 + Tupi North FPSO reaching plateau and leading to Tupi/Iracema 1% phase ramp-up completion Outlook + Resuming Berbigéo/Sururu ramp-up + Targeting ~10% for WI production growth in 2020 + BM-S-11 partners aligning on projects’ new
Slide 6: Commercial and Midstream Robust Contribution
——= COMMERCIAL AND MIDSTREAM ROBUST CONTRIBUTION AMIDST STILL WEAK DEMAND AND HARSH REFINING ENVIRONMENT Commercial 3Q20 operations Outlook * Sales recovering across all segments, * Cautious outlook given market uncertainty especially on B2C, also benefiting from summer season + Performance also sup
Slide 7: Renewables & New Businesses
——— RENEWABLES & NEW BUSINESSES BECOMING LEADING SOLAR PLAYER IN IBERIA 7 Projects’ solar PV installed capacity (100% basis) Portugal m Spain (JV with ACS) 0.9 cw 3.36w Under operation Spanish solar acquisition completion 3Q20 Expected by 2024 c€2.2bn 75.01% €325m Transaction EV (100%) Galp’s JV sha
Slide 8: Regulated Gas Stake Sale Agreement
REGULATED GAS STAKE SALE AGREEMENT CRYSTALLISING VALUE FROM NON-CORE ASSET 9 ERE Value accretive transaction taking advantage of market environment 75.01% Completion expected by 1Q21 2.49% 2016 2020 Stake sold «368m c€ 1.2 bn «13x Stake sale amount Implicit EV EV/Ebitda! 8 — 3Q20 Results Based on 20
Slide 9: Executing a Value Focused Strategy
=——— EXECUTING AVALUE FOCUSED STRATEGY WHILE MAINTANING GROUP’S FINANCIAL STRENGHT — me Short term operational adjustments and cash preservation Key strategic projects development Developing new value driven solutions € 0.5-0.7 bn p.a. 2020/21 expected net capex' Asset rotation: €325m o~ €368m Solar
Slide 10: Reinforcing Galp's Decarbonisation Path
REINFORCING GALP’S DECARBONISATION PATH ALIGNING WITH EUROPEAN UNION AMBITIONS Bring the portfolio into line with the vision for carbon neutrality in Europe by 2050 Galp’s ESG performance consistently recognised by the key independent sustainability institutions Reduce carbon intensity of the Group'
Slide 11: 3Q20 Results
@) 3Q20 RESULTS Filipe Silva, CFO
Slide 12: Group Ebitda of €401m in 3Q20
—— GROUP EBITDA OF €401M IN 3Q20 RESILIENCE FROM UPSTREAM AND COMMERCIAL SEGMENTS em 3Q19 2Q20 3Q20 RCA Ebitda 19 271 401 Upstream performance YoY impacted by weaker Brent and USD, despite higher production Upstream 469 204 302 Commercial 113 59 105 Commercial YoY reflecting lower volumes to direct
Slide 13: 9M20 Pre-Acquisition FCF at €299m
—— 9M20 PRE-ACQUISITION FCF AT €299 M DESPITE CHALLENGING MACRO ENVIRONMENT 9M20 Cash Flow IFRS (€ m) CFFO of €794m Operational performance impacted 399 eS by market conditions, namely in -186 1H20, with 3Q20 delivering a robust cash generation =2y/ 78 | “ +26 -223 Net capex of €713 m -318 Reflectin
Slide 14: Financial Position
—— FINANCIAL POSITION ENSURING STRENGTH TO COPE WITH MARKET UNCERTAINTY 31Dec., 30 Jun., 30 Sep., €m 2019 2020 2020 Net fixed assets Net fixed assets' 7,358 7,008 6,786 Variation during 2020 reflecting unitisation Rights of use (IFRS 16) 1,107 1,124 1,077 settlement, FX effects, impairments in Upstr
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Slide 16: 3Q20 Upstream
=—— 3Q20 UPSTREAM QoQ IMPROVEMENT DRIVEN BY MORE SUPPORTIVE MARKET CONDITIONS 3Q19 2Q20 3Q20 Working interest production kboepd 125.5 132.2 133.8 WI production up QoQ benefiting from the Oil production kbpd 1.0 118.6 120.0 TerAnYD-Up CAF VUypl Nerite ern) @lespaike crerm operational constraints Net
Slide 17: 3Q20 Commercial
=——= 3Q20 COMMERCIAL POSITIVE SIGNS OF DEMAND RECOVERY SUPPORTING A ROBUST PERFORMANCE 3Q19 2Q20 3Q20 Commercial sales to clients Volumes sold to direct client reflecting QoQ Oil products mton 22 12 15 demand recovery in all segments, with YoY variation still impacted by Covid-19 outbreak Netural ga
Slide 18: 3Q20 Refining & Midstream
=——= 3Q20 REFINING & MIDSTREAM WEAK REFINING ENVIRONMENT OFFSET BY ROBUST MIDSTREAM 3Q19 2Q20 3Q20 Raw materials processed mboe 20.6 13.4 23.4 Galp refining margin USD/boe 39 18 -0.7 Oil products supply’ mton 39 25 3.6 NG/LNG supply & trading volumes" TWh 214 n7 17.9 Trading TWh 78 37 5.6 Sales of e
Slide 19: Debt Indicators
—— DEBT INDICATORS Debt indicators Debt reimbursement (€m) 30 Jun.. 30 Sep., em 2020 2020 4000 Cash and cash equivalents 1,696 1,687 800 Undrawn credit facilities 1,263 1,263 600 Gross dest 3,627 3,777 400 Average funding cost 1.7% 1.7% Operating leases (IFRS 16) 4,188 1,147 o@ 2020 021 2022 2023 20
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