Galp Energia, Sgps S.a. Class B · EURONEXT:GALP
Galp Energia, Sgps S.a. Class B — Galp Energia — Q2 2010 Earnings Presentation
21 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Jul 30, 2010
Slide 1: Results: Second Quarter and First Half 2010
Results SECOND QUARTER AND FIRST HALF 2010 July 30 2010 Extending success into new challenges
Slide 2: Second quarter and first half results highlights
Second quarter and first half results highlights Business overview Financial overview Short‐term outlook Strategy execution update 2 Second Quarter and First Half 2010 results
Slide 3: Second Quarter and First Half Results Highlights
Second Quarter and First Half Results Highlights Exploration & Increase in crude price drove results upwards YoY Production Refining & Galp Energia’s refining margin increased by $1.8/bbl YoY in 2Q10 Marketing Gas & Natural gas supply margins recovered YoY Power Financials 2Q10 net profit RCA of €10
Slide 4: Business overview
Second quarter and first half results highlights Business overview Financial overview Short‐term outlook Strategy execution update 4 Second Quarter and First Half 2010 results
Slide 5: Increase in crude price drove results upwards YoY
Increase in crude price drove results upwards YoY Main E&P data ▪ Tupi and CPT Tômbua‐ 2Q10 2Q09 YoY QoQ 1H10 1H09 YoY ‐Lândana projects drove Working interest production kbbl/d 19.8 13.4 +48% +7% 19.1 13.3 +43% working interest production Net entitlement production kbbl/d 10.9 9.3 +17% (14%) 11.8 8
Slide 6: Galp Energia's refining margin increased by $1.8/bbl YoY in 2Q10
Galp Energia’s refining margin increased by $1.8/bbl YoY in 2Q10 Main R&M data ▪ Premium over 2Q10 2Q09 YoY QoQ 1H10 1H09 YoY benchmark benefited by Galp Energia refining margin $/bbl 3.4 1.6 +118% +27% 3.0 2.0 +50% increase in heavy/light Spread over benchmark $/bbl 1.9 0.8 +130% +52% 1.6 0.1 +1176
Slide 7: Natural gas supply margins recovered YoY
Natural gas supply margins recovered YoY Main G&P data ▪ Significant growth in 2Q10 2Q09 YoY QoQ 1H10 1H09 YoY liberalized industrial NG supply total sales volumes M m3 1,105 1,115 (1%) (6%) 2,284 2,189 +4% market YoY Liberalized market sales volumes M m3 812 774 +5% (1%) 1,636 1,263 +29% of which:
Slide 8: Financial overview
Second quarter and first half results highlights Business overview Financial overview Short‐term outlook Strategy execution update 8 Second Quarter and First Half 2010 results
Slide 9: 2Q10 net profit RCA of €109 Mln, up 110% YoY
2Q10 net profit RCA of €109 Mln, up 110% YoY Profit & Loss (€Mln) ▪ Positive contribution 2Q10 2Q09 YoY QoQ 1H10 1H09 YoY from all segments Turnover 3,588 2,866 +25% +9% 6,877 5,793 +19% EBITDA 277 133 +109% +56% 454 286 +59% E&P 44 29 +51% (8%) 93 45 +107% ▪ Net profit impacted R&M 134 42 +215% +10
Slide 10: Transformational capex execution according to plan
Transformational capex execution according to plan Capital expenditure 1 (€Mln) ▪ Tupi continued to be the G&P R&M E&P main driver of E&P’s capex 479 ▪ Upgrade refining project 264 288 capex accelerated in 168 2Q10 ▪ Majority of 2Q10 G&P 1H09 1H10 2Q09 2Q10 capex focused in the cogeneration at Porto
Slide 11: Net debt increase driven by transformational capex
Net debt increase driven by transformational capex Consolidated balance sheet (€Mln) ▪ Increase in work in Jun. 2010 Mar. 2010 Jun ‐ Mar Dec. 2009 Jun ‐ Dec progress, which reached Fixed assets 4,835 4,562 +273 4,379 +456 €1.4 Bln, not yet Work in progress 1,360 1,145 +215 1,015 +345 generating retu
Slide 12: Current liquidity of €1.31 Bln
Current liquidity of €1.31 Bln M/L‐term debt reimbursement profile (€Mln) ▪ Change in reimbursement 600 400 profile to reduce debt 200 repayments in 2011 0 2010 2011 2012 2013 +2014 ▪ Net debt totalled €2.5 Bln Debt structure as of June 2010 ▪ Average interest rate of 3.5% 59% 79% 41% 21% ▪ 65% of c
Slide 13: Short-term outlook
Second quarter and first half results highlights Business overview Financial overview Short‐term outlook Strategy execution update 13 Second Quarter and First Half 2010 results
Slide 14: Short-term Outlook
Short‐term Outlook Exploration & 3Q10 working interest production expected to be in line with 2Q10 Production Refining & Economic recovery uncertainty with potential impact in division drivers Marketing Gas & 3Q10 NG volumes to recover from 2Q10 levels Power Financials Liquidity position permits tra
Slide 15: Strategy execution update
Second quarter and first half results highlights Business overview Financial overview Short‐term outlook Strategy execution update 15 Second Quarter and First Half 2010 results
Slide 16: Development of Tupi ongoing
Development of Tupi ongoing FPSO Cidade de Angra dos Reis ▪ Installation of 216 km NG pipeline already concluded ▪ Recent wells, Tupi NE, Tupi OW and Tupi Alto confirm high reservoir quality ▪ Pilot on time to start operations by 4Q2010 with FPSO Cidade de Angra dos Reis 16 Second Quarter and First
Slide 17: 2H10 drilling program focused on BM-S-11
2H10 drilling program focused on BM‐S‐11 Brazil 2010 Santos Basin ▪ Drilling program focused on Angola 2010 BM‐S‐11 5A high potential Tupi and Block 14 2A BM‐S‐24 1E Iracema areas Block 32 1A Shallow Blocks 1E Angola LNG II 1E ▪ Five new appraisal wells scheduled for 2H10 in Tupi and Iracema areas ▪
Slide 18: Upgrade project moving ahead according to plan
Upgrade project moving ahead according to plan Works at Sines’ refinery ▪ Project on cost, €1.4 Bln, of which €600 Mln already invested ▪ Equipment with longest delivery items (hydrocracker reactors) already on site and installed ▪ All critical equipment & contracts already awarded 18 Second Quarter
Slide 19: New 82 MW cogeneration at Matosinhos in line with schedule
New 82 MW cogeneration at Matosinhos in line with schedule Works at Matosinhos cogeneration ▪ Electric interconnection with the power grid already concluded and all main lead items have been already procured ▪ Matosinhos cogeneration positive impact in earnings of €16 Mln per year ▪ Matosinhos cogen
Slide 20: Disclaimer
Disclaimer 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,” “estimate,” “will,” “may,” "co
Slide 21: Results
Results SECOND QUARTER AND FIRST HALF 2010 July 30 2010 Extending success into new challenges TIAGO VILLAS‐BOAS tiagovb@galpenergia.com www.galpenergia.com INVESTOR RELATIONS OFFICER T: +351 21 724 08 66 F: +351 21 724 29 65