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

Galp Energia, Sgps S.a. Class B — Galp Energia — Q2 2018 Earnings Presentation

18 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 30, 2018

  1. Slide 1: Results Second Quarter 2018

    RESULTS SECOND QUARTER 2018 JULY 30, 2018 INVESTOR RELATIONS

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 By attending or reading this presentation, you acknowledge and agree presentation must not be acted or relied on by persons who are not impossible to predict and are beyond its control. No assurance, however, to be bound by the following limitations and restrictions. This Rele

  3. Slide 3: Agenda

    Agenda 3 Key Highlights Operational Performance Financial Performance Appendix Second quarter 2018 results

  4. Slide 4: Key highlights

    Key highlights 4  CFFO of €604 m, supported by higher oil and gas prices, production growth and refining performance  Free Cash Flow of €398 m, and €146 m net of the €252 m dividend payment  Ebitda up 38% YoY to €628 m, driven by upstream contribution and favourable macro environment  FY2018 Ebi

  5. Slide 5: Agenda

    Agenda 5 Key Highlights Operational Performance Financial Performance Appendix Second quarter 2018 results

  6. Slide 6: Strong upstream execution

    Strong upstream execution 6 Kaombo North – Angola  Lula Extreme South - Brazil Lula North – Brazil Kaombo North FPSO on location, in Angola P-67 FPSO arriving at Rio de Janeiro bay 2Q overview Outlook  WI production of 108.1 kboepd. Brazil output above  3 new FPSOs starting production during 2H18

  7. Slide 7: Solid contribution from downstream

    Solid contribution from downstream 7  Favourable refining market and sourcing & energy  Solid oil marketing operational performance optimisation n  Delivering $0.3/boe from conversion and energy efficiency  Natural gas activities supported by higher sales to initiatives industrial clients in Ibe

  8. Slide 8: Reinforcing Galp's strategic position

    Reinforcing Galp’s strategic position 8 Grow a competitive and resilient upstream portfolio  Securing a 20% stake in Carcará and acquisition of new exploration licenses in Santos and Campos (Uirapuru and C-M-791)  Spud of Guanxuma well, with exploration activities ongoing  2x 7.6 mtpa trains deve

  9. Slide 9: Agenda

    Agenda 9 Key Highlights Operational Performance Financial Performance Appendix Second quarter 2018 results

  10. Slide 10: 2Q18 Ebitda of €628 m, up 38% YoY

    2Q18 Ebitda of €628 m, up 38% YoY 10 Profit & Loss RCA (€m)  Upstream Ebitda supported by production 2Q17 1Q18 2Q18 growth and higher realisation prices, despite Turnover 3,779 3,891 4,546 USD depreciation Ebitda 456 455 628  Downstream Ebitda impacted by lag in E&P 171 293 411 marketing pricing f

  11. Slide 11: Positive FCF in 1H18 after dividend payment in 2Q

    Positive FCF in 1H18 after dividend payment in 2Q 11 1H18 Cash flow (€m)  CFFO 26% up YoY, supported by robust performance, despite weaker USD and working capital build-up  80% of capex allocated to E&P, including additional 3% stake acquisition in BM-S-8 201  FCF up 50% YoY to €427 m 255 54 Pre-

  12. Slide 12: Update 2018 guidance

    Update 2018 guidance 12 FY2018 CMD FY2018 updated 1H18 guidance guidance Ebitda €1.8 - €1.9 bn €1.1 bn >€2.1 bn Capex €1.0 - €1.1 bn €0.4 bn €1.0 - €1.1 bn1 Brent $60/bbl $71/bbl $70/bbl - $75/bbl Benchmark $3.5/bbl $2.1/bbl - refining margin Galp refining margin - $4.8/boe $4.5/boe - $5.5/boe 1 Now

  13. Slide 13: Agenda

    Agenda 13 Key Highlights Operational Performance Financial Performance Appendix Second quarter 2018 results

  14. Slide 14: E&P: Strong results on higher production and realised price

    E&P: Strong results on higher production and realised price 14 Main E&P data1 2Q17 1Q18 2Q18  Production increased 20% YoY and 4% QoQ, supported by the ramp up of FPSO #7 Working interest production kboepd 89.9 104.1 108.1 Oil production kbpd 78.0 91.6 94.6  Opex and DD&A benefiting from a weaker

  15. Slide 15: R&M: Supportive refining performance

    R&M: Supportive refining performance 15 Main R&M data 2Q17 1Q18 2Q18  Refining margin of $6.1/boe, benefiting from middle distillate cracks, raw materials and Galp refining margin USD/boe 5.7 3.3 6.1 energy sources optimisation, as well as Refining cost USD/boe 1.6 2.3 2.3 gasoline exports to the U

  16. Slide 16: G&P: Resilient contributor to results

    G&P: Resilient contributor to results 16 Main G&P data 2Q17 1Q18 2Q18  NG/LNG volumes up 10% YoY, on higher sales to industrial clients NG/LNG total sales volumes mm3 1,726 1,975 1,892 Sales to direct clients mm3 1,052 1,225 1,133  Improved power contribution, benefiting from Trading mm 3 675 750

  17. Slide 17: Strong financial position

    Strong financial position 17 Balance Sheet (€m)  Net fixed assets in line QoQ, with net capex 31 Dec, 31 Mar, 30 Jun, mostly offset by DD&A 2017 2018 2018 Net fixed assets 7,231 7,099 7,095  Net debt down to €1.7 bn, with implicit net debt to Ebitda RCA of 0.9x Working capital 584 744 785 Loan to

  18. Slide 18: Second quarter 2018 results

    18 Second quarter 2018 results

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