MEDIA KIT. An integrated energy player

Transcription

1 2016 MEDIA KIT An integrated energy player

2 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 expressions usually identify forward-looking statements. Forward-looking statements may include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; energy demand and supply; developments of GALP Energia s markets; the impact of regulatory initiatives; and the strength of GALP Energia s competitors. The forwardlooking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management s examination of historical operating trends, data contained in the Company s records and other data available from third parties. Although GALP Energia believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the Company s business strategy, industry developments, financial market conditions, uncertainty of the results of future projects and operations, plans, objectives, expectations and intentions, among others. Such risks, uncertainties, contingencies and other important factors could cause the actual results of GALP Energia or the industry to differ materially from those results expressed or implied in this presentation by such forward-looking statements. The information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation, and are subject to change without notice. GALP Energia and its respective representatives, agents, employees or advisors do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this presentation to reflect any change in events, conditions or circumstances.

3 GALP ENERGY OVER THE WORLD 3

4 4 AN INTEGRATED ENERGY OPERATOR Projects in the pre-salt Santos basin, Brazil, in Angola and in the Rovuma basin, Mozambique Five FPSO in production in Brazil and two CPT in Angola 3P reserves of 960 mmboe and 3C contingent resources of mboe Exploration resources of mboe E&P R&D G&P EBITDA 356 M (-19.8% 2014) EBITDA 800 M (+94% 2014) EBITDA 382 M (+13% 2014) Refining capacity of 330 kbopd 1.4 bn upgrade project generating returns since 2Q2013 Broad marketing network in Iberia and growing presence in Africa 1,435 service stations and 834 convenience stores NG/LNG hit record sales of 7,7 bcm and a robust LNG trading activity 12,348 km of NG distribution network Growing presence as electricity trader in the Portuguese market with a total of GWh in electricity sales (+22% than 2014)

5 5 AGENDA A NEW ERA IN THE UPSTREAM SOLID DOWNSTREAM BUSINESS SOLID FINANCIALS SUSTAINABLE AND RESPONSIBLE GROWTH

6 1 ENERGY CREATES ENERGY A NEW ERA IN THE UPSTREAM

7 A STRONG SET OF ASSETS BRASIL MOZAMBIQUE ANGOLA PORTUGAL World-class development projects in Santos basin Focus on Lula/Iracema project execution One of the largest LNG development projects worldwide Unique key features enhance project competitiveness Three producing fields reached peak production Fields in block 14/14K and block 32 to be developed Galp holds the rights to 7 exploration sites First Portuguese deep water exploration to be initiated in 2016

8 CAMPO LULA/IRACEMA: EXECUTION OF A WORLD-CLASS PROJECT Lula/Iracema 2015 WI production of 45.8 kboepd, of which 36.0 kboepd in Brazil 29 projects across onshore and offshore basins Present in Brazil since 2000, with several world-class discoveries since then Most relevant discoveries located in the Santos basin, with nine discoveries in four blocks within the presalt layer Santos basin is the main driver behind Galp Energia s production growth 8 1FPSO Floating production storage offloading

9 SANTOS BASIN: UNIQUE DEVELOPMENT OF WORLD-CLASS PROJECTS 9 CIDADE DE ANGRA DOS REIS A72Q3632 CIDADE DE MANGARATIBA CIDADE DE PARATY CIDADE DE ITAGUAÍ FPSO Cidade de Angra dos Reis e FPSO Cidade de Paraty already producing at full capacity FPSO Cidade de Mangaratiba producing since October 2014 has reached its peak of production on 1H2016 FPSO Cidade de Itaguaí started its production in the 3Q2015 FPSO Cidade de Maricá started production in February 2016 and its estimated that FPSO Cidade de Saquarema will start production in June 2016

10 MULTISTAGE DEVELOPMENT FOR THREE SEPARATE ACCUMULATIONS 10 Significant resource base in a challenging heterogeneous reservoir Development plans of Atapu, Berbigão and Sururu fields submitted to ANP in June 2015 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 2018 to further appraise this field NOME DA APRESENTAÇÃO 2016

11 DE-RISKING OTHER RELEVANT PRE-SALT PROJECTS 11 Carcará North and Carcará NW confirmed the extension of the discovery DST in Carcará North proved high quality and productivity DoC submission extended until March 2018 and gas evacuation solution crucial for development Focus on maturing development solution for oil and condensates Sépia East DoC submitted in November 2015 Sépia East to be unitised with Sépia (ToR) NOME DA APRESENTAÇÃO 2016

12 LEGISLATION FOR THE ROVUMA PROJECT APPROVED 12 Moçambique: Baçia do Rovuma Over 85 tcf GIIP identified Project well located to benefit from LNG market dynamics in Asia and Europe Potential for economies of scale in onshore LNG project Supportive legal framework established at YE2014 Mamba Unitisation Agreement with Area 1 signed in November GIIP-Gas initially in place

13 MATURE FIELDS BEING COMPLEMENTED BY NEW DEVELOPMENTS 13 Angola Galp is involved in Angola since discoveries Three fields already under production: Kuito, BBLT, Tômbua-Lândana Lianzi which started production on 2S2015 and Kaombo expected in 2017 Around $1 bn of accumulated investment in the country

14 PORTUGAL: SEVEN OFFSHORE BLOCKS IN THE ALENTEJO AND PENICHE BASIN Portugal Alentejo Basin Alentejo: Three blocks in the Alentejo basin: Santola, Lavagante and Gamba 14 Forecast of the first well drilling during summer 2016 Peniche: In the Peniche Basin Galp has a 30% stake over 4 blocks: Camarão, Ameijoa, Mexilhão e Ostra A drilling related decision may have place in 2017

15 STRONG PIPELINE OF PROJECTS TO DELIVER PRODUCTION GROWTH 15 Working interest production(mboepd) Production of operating & sanctioned projects CAGR % - 30% Operating & sanctioned projects production Iara Carcará Júpiter Pitú Rovuma Area 4 Angola Bloco 14

16 2 ENERGY CREATES ENERGY SOLID DOWNSTREAM BUSINESS

17 SOLID AND EFFICIENT DOWNSTREAM AND GAS BUSINESSES Refining & Marketing 17

18 SOLID AND EFFICIENT DOWNSTREAM AND GAS BUSINESSES Gas & Power 18

19 THE REFINERY UPGRADE INCREASED EFFICIENCY AND COMPLEMENTARITY 19 Integrated refining system Vaccum Visbreaker Sulphur Recovery Unit HDS Sour Water Stupper CDU upgrade New tankage Hydrocracker Sulphur Recovery Unit Deisobutanizer Steam reformer CDU upgrade New tankage Matosinhos Sines Efficient refining system, able to respond to market needs replacing fuel oil production for diesel Upgraded refining scheme was crucial considering the current European refining environment 1.4 bn investment made on upgrade project generating returns since 2Q refining margin of $6.6/bbl

20 3rd LARGEST PLAYER¹ IN IBERIA AND A GROWING PRESENCE IN AFRICA 20 Service station network in Iberia Marketing development clusters in Africa Annual oil sales to direct clients of 9,1 mton Improving refining and market integration Network of 138 service stations across the African continent African oil sales volume represent about 8% of the total volume of direct client sales 1,435 service stations by the end of nº of service stations

21 21 2nd NATURAL GAS PLAYER IN IBERIA & ROBUST LNG TRADING ACTIVITY Evolution of NG & LNG sales 4,5 4 3,5 3 2,5 2 1,5 1 0, ,1 3,8 3,7 3,8 3,8 3 2, Build a sustainale NG and LNG portfolio Iberian demand and flexible sourcing contracts support LNG trading position and new supply Secure access to infrastructure and storage capacity in Europe Iberian Sales Trading LNG

22 STEADY CONTRIBUTION FROM REGULATED GAS & POWER ACTIVITIES 22 Autonomous gas unit (AGU) Cogeneration unit Extensive infrastructure in Iberia includes a distribution network of 12,348 km and stakes in Iberian pipelines 173 MW of total capacity installed

23 3 ENERGY CREATES ENERGY FINANCIAL OUTLOOK

24 INCOME STATEMENT Profit & Loss Operating results benefited from the improvement of the European refinery margins and from distribution activity and oil sales exports The increase of the production levels of oil&gas contributed to limited impact of the devaluation of the crude price Net income of 639 million, comparing to the same period in the previous year hurt by low refinery margins and a programed stop in the Sines refinery.

25 BALANCE SHEET Balance Sheet¹ 25 Current investments responsible for more than 20% of current Fixed and LT assets The Net Debt + Equity ratio was about 1.2x¹ ¹IFRS Figures ²Not considering loan to Sinopec as cash and equivalents

26 BALANCED AND SUSTAINABLE CAPITAL STRUCTURE Debt reimbursement profile Gross debt with average maturity of 3.7 year Average interest rate of 4.2% Net debt to Ebtida was 1.5x at the end of 2015, or 1.2x, considering the loan to Sinopec as cash and equivalents

27 POSITIVE CASH FLOW AND PREDICTED RAPID GROWTH FROM 2017 ONWARDS Galp free cash flow¹ ( m) Integrated model stabilizing free cash flow in a lower oil price environment 27 Group expected to turn free cash flow positive during 2018 and Brazil in 2017 Under a flat $45/bbl Brent price scenario (low case), the Galp free cash flow would become positive during 2018

28 CAPITAL INCREASINGLY DISPERSED IN THE MARKET Galp shareholding struture Free float evolution 28 ¹Market capitalization as of 31/01/16 Note: Parpública s 7% stake placed through exchangeable bonds

29 4 ENERGY CREATES ENERGY SUSTAINABLE AND RESPONSIBLE GROWTH

30 SUSTAINABILITY FULLY INTEGRATED INTO OUR STRATEGIC DECISION MAKING PROCESS 30

31 RECOGNITION FOR THE BEST SUSTAINABILITY PRACTICES AND GOVERNMENT Galp is part of the Climate Disclosure Leadership Index (CDLI) for the third consecutive year, achieving the first place in the energy sector, in the Iberia 125 CDLI by the CDP in 2014 Presence in the Dow Jones Sustainability Indices Europe (DJSI) Europe and DJSI World for the third consecutive year Considered one of the 100 most sustainable companies in the world by Corporate Knights, 2015 edition, occupying the 16th place in the Global 100 and the 1st best in the sector For more information visit Galp s sustainability webpage:

32 32 Media Relations (24 hours)