FOURTH QUARTER & FULL YEAR 2008 RESULTS Lisbon, 5 March 2009
FULL YEAR 2008 HIGHLIGHTS
FULL YEAR 2008 NET PROFIT RCA OF 478 MILLION, UP 14% YoY 1 2 IFRS Replacement Cost Adjusted 2007 2008 % Ch. Mln 2007 2008 % Ch. 12,560 15,086 +20% Turnover 12,556 15,062 +20% 1,213 449 (63%) EBITDA 891 975 +9% 936 167…
INVENTORY EFFECT IMPACTED BY STEEP DECLINE IN CRUDE PRICE Net profit RCA 2008 Mln 355 6 478 117 Net profit IFRS Inventory effect Non recurrent items Net profit RCA 4 FOURTH QUARTER & FULL YEAR 2008 RESULTS
R&M POSTING A STRONG PERFORMANCE IN 2008 EBIT RCA 2008 EBIT RCA in 2008 was up Mln 12% YoY, fuelled by the 121 R&M division, which more than offset the weaker 693 results in G&P (39) R&M operating result was up 620 47%…
CAPEX MOSTLY FUELLED BY THE R&M SEGMENT 2008 Capex The majority of E&P investment Mln programme channelled to development activities in Block 14 and exploration works in offshore 116 1,560 1,247 Brazil R&M responsible for…
NET DEBT INCREASE DRIVEN BY IBERIAN ACQUISITIONS Balance Sheet items Mln Dec. 2007 Dec. 2008 Change Fixed Assets 2,584 3,881 1,297 Strategic Stock 582 480 (103) Other assets (liabilities) (151) (29) 122 Working Capital 89…
FIXED DEBT HEDGES AGAINST VOLATILE ENVIRONMENT Debt structure as of December 2008 Net debt totals 1,864 Mln Average debt maturity of M/L- 68% 66% term debt of 3.7 years 32% 34% M/L-term debt accounts for 66% Floating Fixed…
DIVIDEND PROPOSAL OF 0.32 PER SHARE 1 Dividend proposal 2008 0.32 0.17035 0.14965 1 2 3 To be Already paid in To be paid until proposed in October 22, 2008 the end of May the next AGM, on April 27 9 FOURTH…
FULL YEAR 2008 HIGHLIGHTS EXPLORATION EBIT RCA in 2008 reached 141 Mln & PRODUCTION Net entitlement production down 20% YoY REFINING R&M posted a great performance, reaching 373 Mln in 2008 & MARKETING Refining margin…
FOURTH QUARTER 2008 BUSINESS OVERVIEW
REBOUND OF NET ENTITLEMENT PRODUCTION IN 4Q08, UP 6% QoQ BBLTs operational delays solved and Tmbua-Lndana gradual increase more than offset Kuitos natural decline 4Q08 net entitlement production benefited due to PSA effect Net…
FAVOURABLE TREND FROM SIMPLE REFINING MARGINS Galp Energia vs Benchmark Refining Margin Fuel oil margin posted a 52% Usd/bbl QoQ, or +16.5 Usd/bbl (4Q08 Spread over Benchmark fuel oils yield of 18%) Benchmark 25% 7% Base oils…
VOLUMES TO DIRECT CUSTOMERS INCREASED BY 17% YoY Mln ton 4Q08 % QoQ % YoY The recent Iberian Agip Refining throughput 3.0 (1.1%) (2.0%) acquisition, consolidated from October 1st 2008, had a positive contribution Total…
NATURAL GAS VOLUMES AFFECTED BY INTER FUEL COMPETITION Liberalized & Regulated markets Volumes in the regulated market posted a growth Bcm Liberalized of 19% QoQ, due to a Regulated steady increase in the (24%) number of new…
FOURTH QUARTER 2008 FINANCIAL OVERVIEW
4Q08 EBIT RCA UP 89% YoY BACKED BY STRONG R&M EBIT RCA 4Q 2008 Operating performance of E&P Mln hit by lower crude realization price 213 179 Favourable refining margin (52) contribution and a positive time lag effect of 105…
4Q08 NET PROFIT RCA HIT BY HIGHER INTEREST COST Net Profit RCA 4Q 2008 Mln Higher level of interest costs due to increase 15 179 in total debt (16) 125 Effective tax rate of (51) (1) 29%, was lower than last years level…
FOURTH QUARTER 2008 HIGHLIGHTS EXPLORATION Stable average working interest production QoQ & PRODUCTION Operating result hit by lower realization crude price REFINING Refining margin up 24.8% YoY to 5.8/bbl & MARKETING Positive…
APPENDIX
FOURTH QUARTER 2008
VOLATILITY IN CRUDE PRICES LED TO REVERSED IMPACTS FROM TIME LAG Time lag effect vs crude price The volatility of prices and the steepness of the trend impact the amount of the time lag effect 133 104 98 A positive trend in…
NET IMPACT OF 103 MLN RELATED TO GAS SOURCING Galp Energia sourcing base NLNG+ Change of pricing formula to a more energetic LNG-cost to Brent price curve illustrative LNG Cost New Old Brent NLNG II LNG cost…
4Q08 CAPEX DRIVEN BY IBERIAN ACQUISITIONS Capex 4Q 2008 E&P investment was focused to operations not only in Angola Mln but also in Brazil 37 1,132 1,051 Sines refinery had relevant maintenance and upgrade works in 4Q08…
FULL YEAR 2008 OVERVIEW
NET ENTITLEMENT PRODUCTION HIT BY INCREASE IN BRENT PRICE BBLTs operational delays in the beginning of the year impacted working interest production Increase in average brent price, up 34% YoY, drove net entitlement production…
FUEL CRACKS IMPACTED REFINING MARGIN MOST OF THE YEAR Galp Energia vs Benchmark Refining Margin Usd/bbl Spread over Benchmark Benchmark Fuel oil cracks with unfavourable trend and (19%) devaluation of Usd/Eur 5.5 impacted…
VOLUMES SOLD TO DIRECT CLIENTS INCREASED 3% Mln ton 2008 % YoY Volumes benefited from Refining throughput 13.1 (5.1%) integration of Iberian Agip operations, with a 0.6 Mln Total volumes of products sold 16.0 +0.5% ton added…
BEST YEAR EVER IN TERMS OF NATURAL GAS VOLUMES Liberalized & Regulated markets Bcm Liberalized NG volumes increase with Regulated important contribution 5% from electrical segment 5.6 and industrial sales in 5.4 Spain 3.2…
CAPEX MOSTLY FUELLED BY THE R&M SEGMENT 2008 Capex The majority of E&P investment Mln programme channelled to development activities in Block 14 116 1,560 and exploration works in offshore 1,247 Brazil R&M responsible for…
FULL YEAR 2008 NET PROFIT RCA OF 478 MILLION, UP 14% YoY 1 IFRS Replacement Cost Adjusted 2007 2008 % Ch. Mln 2007 2008 % Ch. 12,560 15,086 +20% Turnover 12,556 15,062 +20% 1,213 449 (63%) EBITDA 891 975 +9% 936 167 (82%)…
NET DEBT INCREASE DRIVEN BY IBERIAN ACQUISITIONS Balance Sheet items Mln Dec. 2007 Dec. 2008 Change Fixed Assets 2,584 3,881 1,297 Strategic Stock 582 480 (103) Other assets (liabilities) (151) (29) 122 Working Capital…
BASIS OF PRESENTATION In 2008 the inventory cost method has The acquisition of Iberian subsidiaries changed from FIFO to Average Cost. of Agip and ExxonMobil, which were Since First Time Adoption of IAS/IFRS in officially…
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