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December 2017 Investor Presentation – Galp Energia

Galp Energia · Dec 12, 2017 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. December 2017 Investor Presentation – Galp Energia – slide 1
    Investor Presentation December 2017
  2. December 2017 Investor Presentation – Galp Energia – slide 2
    3 Galp key takeaways Upstream Downstream Financials Shareholders and Governance Key Data Investor Presentation December 2017
  3. December 2017 Investor Presentation – Galp Energia – slide 3
    4 An integrated energy player Galp 13.1 bn Market Cap 1.8 bn LTM Ebitda Exploration & Production Refining & Marketing Gas & Power 0.9x Net debt to Ebitda 1,993 mmboe 2P+2C 330 kbpd refining capacity 7.3 bcm NG/LNG sales 89.3…
  4. December 2017 Investor Presentation – Galp Energia – slide 4
    5 Positioned to capture future growth Growth & value story Optionality & flexibility Financial priorities 15-20% Production CAGR 2016-21 FCF0 New cash cycle Disciplined Capital allocation 20% Ebitda CAGR 2016-21 Start to Diversify…
  5. December 2017 Investor Presentation – Galp Energia – slide 5
    6 Galps 3Es approach Execute Extract Explore Focus Unlock more Screen new on delivery value from opportunities and and returns current portfolio portfolio management Investor Presentation December 2017
  6. December 2017 Investor Presentation – Galp Energia – slide 6
    7 Galp key takeaways Upstream Downstream Financials Shareholders and Governance Key Data Investor Presentation December 2017
  7. December 2017 Investor Presentation – Galp Energia – slide 7
    8 Developing upstream portfolio in three core areas Brazilian pre-salt Angola offshore Mozambique Rovuma Investor Presentation December 2017
  8. December 2017 Investor Presentation – Galp Energia – slide 8
    9 Delivering growth through project execution and extraction Working interest production from current portfolio (kboepd) 15 - 20% CAGR 2016-21 (sanctioned projects1) 23% CAGR 2010-16 100 90 - 95 68 Today 20 2010 2016…
  9. December 2017 Investor Presentation – Galp Energia – slide 9
    10 Projects execution on track Jpiter SOUTH AMERICA Iracema N. Carcar / (2015) Carcar North Iracema S. Berbigo/ (2014) Sururu Atapu 2 Lula NE Lula Lula Ext. Lula West (2013) Central South Lula Pilot Lula Lula Spia Lula…
  10. December 2017 Investor Presentation – Galp Energia – slide 10
    11 Delivering and improving the Lula and Iracema projects BM-S-11 Lula/Iracema Seven installed FPSOs, six in plateau Solid Currently producing over 90 kboepd execution Current development plan c.70% realised Significant…
  11. December 2017 Investor Presentation – Galp Energia – slide 11
    12 Lula/Iracema: Strong productivity supporting ramp-up Average production per well1 FPSO ramp-up period Plateau period (kboepd) ( months) ( years) 30 18 Plan 2017-21 7 15 23 13 13 11 10 c.20% 3 Brazilian pre-salt…
  12. December 2017 Investor Presentation – Galp Energia – slide 12
    13 Lula/Iracema: Working towards 40% recovery factor Expected oil recovery factor (%) Infill drilling 40% Reservoir Seismic 4D WAG 30% 28% Separation 23% Subsea Boosting Seawater treatment Gas/CO2 handling Topsides…
  13. December 2017 Investor Presentation – Galp Energia – slide 13
    14 Greater Iara: Enhancing development of key pre-salt project BM-S-11 Berbigo/Sururu/Atapu FPSOs (replicants) under construction with production to start at Berbigo/Sururu Ongoing drilling campaign and optimising PoD for three…
  14. December 2017 Investor Presentation – Galp Energia – slide 14
    15 Preparing next wave of pre-salt developments Greater Carcar BM-S-24 Spia East/Jpiter Accessing Carcar North and realigning BM-S-8 Spia East to be unitised with Spia and production equity interests together with Statoil and Exxon…
  15. December 2017 Investor Presentation – Galp Energia – slide 15
    16 Mozambique: One of the most competitive LNG regions LNG net present landed cost to Asia (/ton)1 Quality and scalability of resource base 2,200 U.S. Favourable time to market to meet LNG demand 1,600 Mozambique Increase gas…
  16. December 2017 Investor Presentation – Galp Energia – slide 16
    17 Mozambique: A large scale integrated project Rovuma Area 4 Mamba onshore Coral offshore LNG trains Coral South FLNG (3.4 mtpa) World-class LNG project due to quality and FID made in June 2017 with total scalability of…
  17. December 2017 Investor Presentation – Galp Energia – slide 17
    18 Angola: Production to increase with Kaombo start-up Block 14/14k Block 32 Decrease in production due to natural decline of the Two FPSOs expected to start production in 2018, fields offsetting decline from mature projects in…
  18. December 2017 Investor Presentation – Galp Energia – slide 18
    19 Investing in competitive upstream projects Technical costs1 (/boe) Lifting costs Leasing costs DD&A Reservoir characteristics and project scale driving Brazil 27 technical costs close to 15/boe…
  19. December 2017 Investor Presentation – Galp Energia – slide 19
    20 Exploration strategy focused on Atlantic margin Galp current exploration projects Leverage competitive advantages and synergies with current portfolio Portugal Screening opportunities with focus on DROs S. Tom and Prncipe…
  20. December 2017 Investor Presentation – Galp Energia – slide 20
    21 Planned exploration activities BM-S-8 Potiguar basin Alentejo basin Blocks 5, 6, 11, 12 (Brazil) (Brazil) (Portugal) (So Tom and Prncipe) Guanxuma expected to Broadband 3D seismic First ever deepwater Large scale 3D seismic be…
  21. December 2017 Investor Presentation – Galp Energia – slide 21
    22 Galp key takeaways Upstream Downstream Financials Shareholders and Governance Key Data Investor Presentation December 2017
  22. December 2017 Investor Presentation – Galp Energia – slide 22
    23 Galp benefitting from Iberian recovery and African growth Iberian oil and NG market GDP 1.3% 3.0% 2.8% 2.4% growth Economic recovery contributing to the development of 59 60 62 oil and natural gas markets in Iberia 47 African…
  23. December 2017 Investor Presentation – Galp Energia – slide 23
    24 R&M: efficient and competitive refining system Main product flows from Galp refining system Modern refining system with high conversion capacity Focus on maximising energy efficiency and optimising refining processes…
  24. December 2017 Investor Presentation – Galp Energia – slide 24
    25 R&M: reference marketing player in Iberia and in core African clusters Service station in Portugal 1,435 service stations and 823 convenience stores Number one player in Portugal, and third largest in Iberia Launched…
  25. December 2017 Investor Presentation – Galp Energia – slide 25
    26 G&P: building a sustainable integrated business NG/LNG Supply & Trading Power Associated businesses Focus on expanding and Integration with remaining 77.5% stake in regulated gas leveraging client base downstream businesses…
  26. December 2017 Investor Presentation – Galp Energia – slide 26
    27 Extracting value from downstream businesses Quality of assets Business competitiveness Large client base Brand recognition Increasing integration and cross-selling Leveraging on brand awareness Improving efficiency and…
  27. December 2017 Investor Presentation – Galp Energia – slide 27
    28 Galp key takeaways Upstream Downstream Financials Shareholders and Governance Key Data Investor Presentation December 2017
  28. December 2017 Investor Presentation – Galp Energia – slide 28
    29 Disciplined capital allocation focused on key projects Business plan 2017-21 capex allocation Upstream Downstream 1.1 bn Brazil 0.8-1.0 bn Other Angola Mozambique Last 5 years Annual avg. 2017-21 plan Projects…
  29. December 2017 Investor Presentation – Galp Energia – slide 29
    30 Growth plan supported by highly competitive assets Results contribution per business (m) 3,500 Group Ebitda CAGR 2016-21 of c.20% Upstream contribution supported by high production growth 1,750 1,496 Downstream…
  30. December 2017 Investor Presentation – Galp Energia – slide 30
    31 Entering a new cash cycle Post dividend free cash flow1 (m) and cash breakeven 1,000 100 Stronger 2017 cash generation benefiting from operating performance and market conditions 500 50 Avg. cash breakeven Further upsides…
  31. December 2017 Investor Presentation – Galp Energia – slide 31
    32 Focused on a competitive TSR and capital allocation Long-term capital allocation Oil & Gas businesses to remain core activities Oil & Gas Dividends businesses Start diversifying into lower carbon solutions Committed to…
  32. December 2017 Investor Presentation – Galp Energia – slide 32
    33 Galp key takeaways Upstream Downstream Financials Shareholders and Governance Key Data Investor Presentation December 2017
  33. December 2017 Investor Presentation – Galp Energia – slide 33
    34 Galp in the capital markets Galp shareholding structure Free float dispersion1: Qualifying holdings: Europe 50% 33% North America 45% RoW 5% 60% 7% 1According to best available information, as of end of December…
  34. December 2017 Investor Presentation – Galp Energia – slide 34
    35 Adding value to shareholders Share performance (%) Annualised TSR since Galp IPO2 (%) YTD1 2016 49% 44% 32% 29% 28% 23% 13% 20% 17% 12% 6% 4% 3% -1% -4% -4% -16% European European European SXEP European European…
  35. December 2017 Investor Presentation – Galp Energia – slide 35
    36 A committed and experienced team Over 20 years of experience in Oil & Gas. Board executive for more than 12 years in the beverage and energy industries. Galp Board member since 2007. Chief Executive Officer Carlos Gomes da…
  36. December 2017 Investor Presentation – Galp Energia – slide 36
    37 Galps corporate sustainability internationally recognised Investor Presentation December 2017
  37. December 2017 Investor Presentation – Galp Energia – slide 37
    38 Galp key takeaways Upstream Downstream Financials Shareholders and Governance Key Data Investor Presentation December 2017
  38. December 2017 Investor Presentation – Galp Energia – slide 38
    39 Business plan macro assumptions and sensitivities Galp assumptions (CMD Feb-17) 2017E 2018E 2019E 2020E 2021E Brent price (/bbl) 50 55 60 65 70 Benchmark refining margin (/bbl)1 2.5 2.4 2.4 2.3 2.2 EUR:USD 1.10 1.10 1.10 1.10…
  39. December 2017 Investor Presentation – Galp Energia – slide 39
    40 Key operational indicators 2016 YoY 3Q17 YoY 9M17 YoY Exploration & Production1 Average working interest production2 (kboepd) 67.6 48% 94.6 28% 90.8 47% Oil production (kbpd) 62.3 46% 82.8 20% 79.2 37% Average net entitlement…
  40. December 2017 Investor Presentation – Galp Energia – slide 40
    41 Committed to a solid capital structure Profit & Loss (m) Balance sheet (m) 2016 3Q17 YoY 9M17 YoY Sep.17 vs. Dec.16 YoY Sep.17 Dec.16 Ebitda 1,411 487 27% 1,379 36% Net fixed assets 7,721 (171) 7,505 (216) E&P 494 215 69% 606…
  41. December 2017 Investor Presentation – Galp Energia – slide 41
    42 2017 showing strong cash flow generation 9M17 Change in net debt (m) Operational performance supporting superior cash flow generation 1,492 53 362 Positive post-dividends FCF during the first nine months 152 of 35 m, despite…
  42. December 2017 Investor Presentation – Galp Energia – slide 42
    43 Key indicators on Galps debt Debt indicators 2016 Sep.17 Gross debt 2.9 bn 2.7 bn Cash and equivalents 1.0 bn 0.8 bn Net Debt 1.9 bn 2.0 bn Net Debt considering loan to Sinopec as cash 1.3 bn 1.5 bn Net Debt to Ebitda Ratio1…
  43. December 2017 Investor Presentation – Galp Energia – slide 43
    44 Galps debt profile Debt structure Reimbursement plan (m) Project finance 1% 800 EIB 11% 600 Bank loans 400 EMTN 52% 36% 200 0 2017 2018 2019 2020 2021 2022+ Current profile Profile YE2016 Investor Presentation…
  44. December 2017 Investor Presentation – Galp Energia – slide 44
    45 Galps reserves and resources portfolio Reserves and resources (mmboe)1 Reserves 2015 2016 % Chg. 1P 276 274 (1%) 2P 701 673 (4%) 3P 960 927 (3%) Contingent resources 2015 2016 % Chg. 1C 307 300 (2%) 2C 1,342 1,320 (2%) 3C…
  45. December 2017 Investor Presentation – Galp Energia – slide 45
    46 Acronyms Number Chg. Change mtpa Million tonnes per annum (or USD) Dollar CMD Capital Markets Day N North % Percentage CO2 Carbon dioxide NE Northeast & And COO Chief Operating Officer NG Natural Gas At D&C Drilling and Completion…
  46. December 2017 Investor Presentation – Galp Energia – slide 46
    47 Investor Relations team Pedro Dias, Head Otelo Ruivo, IRO Ctia Lopes Joo G. Pereira Joo P. Pereira Teresa Rodrigues +351 21 724 08 66 investor.relationsgalp.com For further information on Galp, please go to:…

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