0 December, 2015 INVESTOR PRESENTATION An integrated energy player focused on exploration and production INVESTOR PRESENTATION DECEMBER 2015
AN INTEGRATED OIL & GAS COMPANY 2 Galp Energia Group Market capitalisation c.8 bn1 Exploration & Production Refining & Marketing Gas & Power Key Financials 2014 Ebitda: 1.3 bn 2014 Ebitda: 444 m 2014 Ebitda: 412 m 2014 Ebitda:…
FREE FLOAT EXPECTED TO INCREASE IN THE NEAR FUTURE 3 Galp Energia shareholding structure Free float evolution Free float Of which, institutional investors in: 2.11% 2.03% 2.45% 2.02% North America c.35% 2.01% UK c.25% France…
LIST OF CONTENTS 4 DELIVERING GROWTH IN UPSTREAM STEADY CONTRIBUTION FROM DOWNSTREAM AND GAS ACTIVITIES STRONG FINANCIAL POSITION KEY TAKEAWAYS APPENDIX INVESTOR PRESENTATION DECEMBER 2015
GALP ENERGIA HOLDS WORLD-CLASS UPSTREAM ASSETS 5 Development plans of Atapu, Berbigo and Sururu fields submitted to ANP GREATER IARA Carbonate reservoir with excellent porosity ROVUMA AREA 4 LULA/IRACEMA and permeability…
LULA/IRACEMA: EXECUTION OF A WORLD-CLASS PROJECT 6 BM-S-11 (LULA/IRACEMA) INVESTOR PRESENTATION DECEMBER 2015
LULA/IRACEMA: SOLID TRACK-RECORD 7 Production ramp-up FPSO 3 (CID. MANGARATIBA) (kboepd) Iracema South (150 kbopd) 5th producer well connected in Nov., leading to plateau Full ramp-up achieved in 13 months FPSO 2 (CID. PARATY)…
LULA/IRACEMA: FPSO 5 AND 6 ON TRACK 8 FPSO 5 (CID. MARIC ) FPSO 6 (CID. SAQUAREMA) (150 kbopd) (150 kbopd) Topsides integration performed by BRASA/SBM at Mau Construction and integration works completed in Chengxi shipyard, in…
LULA/IRACEMA: EXECUTING MITIGATION MEASURES ON REPLICANTS 9 Gas/CO2 injection and compression modules awarded in May New contracts with lower execution risk and neutral impact on cost and on Galps expected delivery timings…
LULA/IRACEMA: COST OPTIMISATION OPPORTUNITIES 10 Drilling and completion ( days) -21% YoY Benefitting from learning curve and optimised Negotiating new rig rates well design INVESTOR PRESENTATION DECEMBER 2015
LULA/IRACEMA: SIGNIFICANT RECOVERY FACTOR UPSIDE 11 Recovery factor (oil) % 40% Water/Gas injection 4D seismic 28% Infill drilling WAG Subsea separation Technology development Current recovery factor Ambition Each 1 p.p.…
GREATER IARA: MULTISTAGE DEVELOPMENT FOR THREE SEPARATE ACCUMULATIONS 12 Significant resource base in a challenging heterogeneous reservoir Development plans of Atapu, Berbigo and Sururu fields submitted to ANP in June Three…
DE-RISKING OTHER RELEVANT PRE-SALT PROJECTS 13 CARCAR BM-S-8 JPITER BM-S-24 Carcar North and Carcar NW confirmed the discovery of Reviewing timing of appraisal activity light oil and the extension of the discovery Focus on…
MOZAMBIQUE: PROGRESSING WITH AREA 4 PROJECT DEVELOPMENT 14 Over 85 tcf GIIP identified Project well located to benefit from LNG market dynamics between Asia, Europe and South America Potential for economies of scale in onshore…
MOZAMBIQUE: FOCUSED ON INITIAL DEVELOPMENT PHASE 15 CORAL FLNG PROJECT MAMBA ONSHORE LNG PROJECT 1 FLNG (2.5-3.5 mtpa) 2x5 mtpa LNG trains (1st phase) FEED and EPCIC proposals received for FLNG project Onshore development project…
ANGOLA: MATURE FIELDS BEING COMPLEMENTED BY NEW DEVELOPMENTS 16 BLOCK 14/14K BLOCK 32 Current producing fields (Kuito, BBLT, Tmbua- Kaombo project being developed with 2 FPSO (2x125 Lndana) already reached full capacity kbopd)…
SANCTIONED UNITS SUPPORT PRODUCTION GROWTH 17 Current 2016 2017 2018 2019 2020 Lula / Iracema Lula Alto Lula South Lula North Berbigo / Sururu Lula West1 4 Leased FPSOs Leased FPSO Replicant FPSO Replicant FPSO Replicant FPSO…
YIELDING SIGNIFICANT PRODUCTION GROWTH 18 Working interest production (kboepd) Developing existing portfolio CAGR 2014-20 IOR/EOR 25%-30% Exploration 31 50 20 INVESTOR PRESENTATION DECEMBER 2015
TECHNICAL COSTS DRIVEN BY HIGH MARGIN PROJECTS 19 Technical costs (/boe) Large scale of projects drives lower unit costs High quality assets reduce capex requirements 27 22 Lifting costs in 2019 expected to be below 6/bbl…
LIST OF CONTENTS 20 DELIVERING GROWTH IN UPSTREAM STEADY CONTRIBUTION FROM DOWNSTREAM AND GAS ACTIVITIES STRONG FINANCIAL POSITION KEY TAKEAWAYS APPENDIX INVESTOR PRESENTATION DECEMBER 2015
STRONG CASH FLOW FROM MODERN DOWNSTREAM ASSETS 21 REFINING OIL MARKETING Flexible refining system with 330 kbopd refining 1,437 service stations of which 133 in Africa capacity and combined Nelson complexity of 8.6 Oil sales to…
STEADY CONTRIBUTION FROM GAS & POWER ACTIVITIES 22 SUPPLY & TRADING NG INFRASTRUCTURE POWER 2nd natural gas player in Iberia, Extensive distribution network in 205 MW of total capacity installed with total annual sales of 7.5…
LIST OF CONTENTS 23 DELIVERING GROWTH IN UPSTREAM STEADY CONTRIBUTION FROM DOWNSTREAM AND GAS ACTIVITIES STRONG FINANCIAL POSITION KEY TAKEAWAYS APPENDIX INVESTOR PRESENTATION DECEMBER 2015
2014-19 GROUPS EBITDA1 CAGR OF C.20%, DRIVEN BY UPSTREAM GROWTH 24 Upstream Ebitda R&M Ebitda2 G&P Ebitda (m) (m) (m) CAGR 2014-2019 35% Production ramp-up driving R&M Ebitda expected to benefit G&P activities supporting Ebitda…
CAPEX FLEXIBILITY AND FOCUS ON HIGHER MARGIN PROJECTS 25 Capex profile Committed vs. uncommitted capex Total capex Committed Lula/Iracema Angola E&A 2015 Lula/Iracema Other development Uncommitted projects Other projects E&A…
RESILIENT CASH FLOW FROM INTEGRATED BUSINESS MODEL 26 Free Cash Flow (m) Integrated model stabilising free cash flow in a lower oil price environment Group expected to turn free cash flow positive during 2018 and Brazil in 2017…
CURRENT LIQUIDITY SUFFICIENT FOR THE NEXT THREE YEARS 27 Sources and uses 2015-2017 Liquidity of 3.1 bn1: Cash and equivalents of 1.2 bn; loan to Sinopec of 0.8 bn; available credit lines of 1.1 bn Available Net debt to Ebitda2 to…
DIVERSIFIED SOURCES OF FUNDING 28 Debt breakdown Debt reimbursement profile (m) Part of proceeds from Brazil capital increase lent back to 3.6 bn 1.2 bn Sinopec. Being gradually reimbursed according to Public Capex needs in…
3Q15 EBITDA UP 9% YOY WITH A SOUND CAPITAL STRUCTURE 29 Profit & Loss Balance Sheet (m) (m) 3Q14 2Q15 3Q15 QoQ YoY 9M15 YoY Sep.2015 Jun.2015 Dec.2014 Sep-Jun Sep-Dec Turnover 4,693 4,253 3,906 (8%) (17%) 12,082 (10%) Fixed and LT…
LIST OF CONTENTS 30 DELIVERING GROWTH IN UPSTREAM STEADY CONTRIBUTION FROM DOWNSTREAM AND GAS ACTIVITIES STRONG FINANCIAL POSITION KEY TAKEAWAYS APPENDIX INVESTOR PRESENTATION DECEMBER 2015
GALP ENERGIA KEY TAKEAWAYS 31 Unique profile in the industry, delivering outstanding growth bn boe 2.4 resources in place 2P reserves + 2C resources in Production free cash flow 25% CAGR world class projects 2018 positive…
LIST OF CONTENTS 32 DELIVERING GROWTH IN UPSTREAM STEADY CONTRIBUTION FROM DOWNSTREAM AND GAS ACTIVITIES STRONG FINANCIAL POSITION KEY TAKEAWAYS APPENDIX INVESTOR PRESENTATION DECEMBER 2015
KEY OPERATING INDICATORS 33 Exploration & Production 2014 YoY 3Q14 2Q15 3Q15 YoY Average working interest production1 (kboepd) 30.5 24% 31.8 43.8 45.7 +44% Oil production (kbopd) 28.8 26% 29.7 40.5 42.2 +42% Average net entitlement…
2015-19 EBITDA SENSITIVITIES 35 Approximate annual Change Approximate impact in 2015 medium/long term impact Brent price 10/bbl 100 m 350 m Refining margin benchmark1 1/bbl 90 m 80 m EUR:USD 0.10 (70 m) (200 m) 1Benchmark…
KEY INDICATORS ON GALP ENERGIA DEBT 36 YE2013 YE2014 9M15 Gross debt 3.7 bn 3.7 bn 3.6 bn Cash and equivalents 1.5 bn 1.1 bn 1.2 bn Net debt 2.2 bn 2.5 bn 2.4 bn Net debt considering loan to Sinopec as cash 1.3 bn 1.6 bn 1.6…
HIGHLY COMPETITIVE PROJECTS COMPARED TO OTHER UPSTREAM PLAYS 37 Break even oil prices by different oil plays (/bbl) 120 Deep water Oil sands 100 Extra heavy oil North america shale 80 80 61 54 54 57 60 48 53 Onshore 36…
2015 SCHEDULED EXPLORATION AND APPRAISAL ACTIVITIES 39 Spud Duration Well Area Target Interest E/A1 date ( days) status Brazil BM-S-11 Iara RDA 4 10% A 1Q15 - Concluded BM-S-8 Carcar North 14% A 1Q15 - Concluded BM-S-8 Carcar…
PORTFOLIO PIPELINE 40 Exploration Appraisal Pre-development Development Production Guanxuma Namibia Jpiter Tango Iara 1 to 3 Block 32 Iara Kaombo Lula/ Lula/ Block Amazonas Iracema 2 Iracema 4 14/14K New Block 32 Coral…
KEY EXPLORATION AND APPRAISAL CAMPAIGN 41 One of the best rock quality Pitu DST on oil accumulation identified in the pre-salt confirmed good permeability Santos basin and porosity Intensive appraisal campaign Pitu North well…
BRAZILIAN PORTFOLIO STILL HOLDS EXPLORATION POTENTIAL 42 BARREIRINHAS BASIN PERNAMBUCO BASIN Acquisition of a 10% stake in four blocks in 2013 Frontier area with multiple objectives identified to be Three blocks in deep waters and…
UNDEREXPLORED AREAS IN THE E&P PORTFOLIO STILL TO BE EVALUATED 43 URUGUAY NAMIBIA SO TOM Several leads identified with Potential for oil was proved High potential area, close to proven significant upside potential Reprocessing 3D…
A FOCUSED AND EXPERIENCED MANAGEMENT TEAM 44 Over 25 years of experience in different industries, including oil & gas, energy and beverages. Member of Chief Executive Officer the Board of Directors of Galp Energia since 2007.…
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