Presentation An integrated energy player developing profitable and sustainable businesses September 2019
Galp key takeaways
Galp A fast growing integrated energy player 2.4 bn boe 2P + 2C resources 107.3 kboepd (+15% YoY) WI production c.6,400 Employees 1,440 m Ebitda Exploration & 10.8 bn Market Cap. 330 kbpd Production Refining capacity…
Galp Positioned to deliver unique growth and value 2019-2020 2020+ Value Group milestones goals Proposition cash breakeven c.25 /bbl by 2020 ROACE Execute/Extract Deliver Selective Organic From current portfolio Next…
A clear strategy Promote transition to lower carbon businesses Optimise and expand Offer innovative presence in the and differentiating downstream market solutions Develop a profitable Technology and resilient E&P Innovation…
Upstream
Developing three core areas in our upstream portfolio World class deep water portfolio Unique exposure to the Brazilian pre-salt Congo Basin (Angola) Santos & Campos (Brazil) Area 4 (Mozambique) 8 Investor Presentation…
Top quartile upstream portfolio Upstream portfolio breakeven (/bbl) 1ST QUARTILE 2ND QUARTILE 3RD QUARTILE 4TH QUARTILE Lowest upstream portfolio breakeven amongst integrated peers, from a unique world class asset base…
Increasing potential of long-term production growth WI production from existing portfolio (kboepd) 2019/20 2020+ Adjusting Lula Increasing and Iara timeline, contribution from reflecting P67 and existing portfolio P68 units later…
Lula & Iracema Delivering and improving large scale projects BM-S-11 Lula & Iracema Completing initial development Lula & Iracema phase: 9 FPSOs deployed with 2Q19 production: c.97 kboepd c.1.3 mmbpd total installed capacity…
Iara The next high-quality pre-salt growth project BM-S-11A Greater Iara Berbigo/Sururu FPSO already at final location and first oil is expected by YE2019 Berbigo/Sururu Ongoing drilling campaign First oil by 4Q19 and…
Greater Carcar High potential to drive 2020+ growth BM-S-8 and North of Carcar Carcar reservoir quality to exceed Santos basin average performance with breakeven Phase…
Spia and Jpiter Additional 2020+ pre-salt contribution BM-S-24 Spia East and Jpiter 180 kbpd FPSO already awarded for the Spia project Spia First oil expected in 2021 Unitisation of Spia East and Spia effective as of September…
Mozambique Area 4 Fast tracking phased LNG developments Mozambique to become a major LNG supplier, leveraging quality and scalability of gas discoveries Favorable time to market to meet LNG demand Coral South: 3.4 mtpa FLNG…
Angola Contribution increasing with Kaombo ramp-up Block 14/14k and Block 32 Block 14/14k 2 FPSOs ramping-up, with Optimising mature total installed capacity of development 130 kbpd Block 14/14k production expected to decrease…
Selectively accessing new opportunities Accessing high potential assets Regional focused exploration strategy in 2018 Brazil bid rounds: Uirapuru in Santos Basin and C-M-791 in Campos Basin Developing competitive advantages and…
Planned exploration activities Uirapuru Guanxuma PEL 82 & PEL 83 Blocks 5, 6, 11 & 12 (Brazil) (Brazil) (Namibia) (So Tom and Principe) Targeting first DST to appraise oil Processing 3D seismic in Analysing results of…
Downstream
Downstream activities focused on selected clusters Iberian oil products and NG demand 1.3% 3.0% 2.8% 3.0% 2.7% GDP Growth 62 63 65 59 60 c.2% Oil CAGR 2014-18 36 36 30 31 32 c.4% NG CAGR 2014-18 2014 2015 2016 2017…
R&M: Refining Competitive and flexible refining system Leveraging refineries location (SW Europe), namely competitiveness in the North American East Coast Oil product sales of 17.1 mton in 2018 (c.70% placed in Iberia)…
IMO 2020 Integrated profile providing hedge to demand specs changes Upstream (m)1 Downstream (m)1 Production sales margin Galp crudes appreciation 2 Production sales margin Realised margin pre-IMO Products price Raw materials…
R&M: Marketing Leading player in core regions High quality retail network located in Iberia and selected African clusters Enhancing efficiency of operations and strengthening regional presence Launching new services while…
G&P Building a sustainable integrated business Strengthening gas and electricity commercial position in Portugal and Spain Leveraging integration with remaining downstream businesses Building new NG/LNG sourcing basket…
Building portfolio optionality Low carbon solutions Preparing integration with current electrical commercial offer Developing a sustainable portfolio of renewable power generation, through solar PV projects in Portugal and Spain…
Organic CFFO 2018-20 CAGR of 10-15% CFFO (m) 10% 0.8-0.9bn Upstream Downstream CFFO CFFO 2,000 2018-20 CAGR 2019-20 1,000 Upstream to benefit from production growth and lower oil taxes from Iara Downstream performance…
Organic capex of c.1 bn p.a. Annual average net capex (m) Upstream 2019-20 capex 1,000 500 0 2018 2019-20E Upstream Acquisitions Downstream Brazil Mozambique Angola Exploration & Appraisal Low carbon & New business…
Organic FCF of c.1 bn from 2020 (post…
Maintaining a disciplined capital allocation Prioritising reinvestment Oil, Gas in value accretive opportunities Dividends & Power businesses Oil, Gas & Power to remain core and starting to develop low carbon 2018 dividend…
IFRS 16 Impacts on Galps reporting principles Balance sheet Cash Flow All leases on balance sheet Leases subject to depreciation and interest Leased FPSOs and subsea equipment account for c.70% of operational leases Opex CFFO…
Shareholding structure Institutional investors account 33.3% 59.2% for 83% of Galps free float1, o.w.: Free Float 61% Europe 34% North America 5% Rest of the world 7.5% 40 Investor Presentation September 2019 Note: 1As…
A committed and experienced team Galps Executive Committee CEO Carlos Gomes da Silva Over 25 years of experience in Oil & Gas and a Galp Board member since 2007. Former Board executive for more than 12 years in the energy and…
Acronyms Number DD&A Depreciation, Depletion and Amortisation mton Million tonnes (or USD) Dollar DRO Discovered Resources Opportunities mtpa Million tonnes per annum % Percentage E Expected NG Natural Gas & And E&P Exploration and…
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