media kit

2016
MEDIA KIT
An integrated energy player
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.
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GALP ENERGY OVER THE WORLD
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AN INTEGRATED ENERGY OPERATOR
Projects in the pre-salt Santos basin, Brazil,
in Angola and in the Rovuma basin,
Mozambique
•
Refining capacity of 330 kbopd
•
•
€ 1.4 bn upgrade project generating returns
since 2Q2013
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 4.636 GWh in
electricity sales (+22% than 2014)
Five FPSO in production in Brazil and two CPT
in Angola
•
Broad marketing network in Iberia
and growing presence in Africa
•
3P reserves of 960 mmboe and 3C contingent
resources of 3.025 mboe
•
1,435 service stations and 834 convenience
stores
•
Exploration resources of 1.493 mboe
•
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EBITDA 382 M€ (+13% 2014)
EBITDA 800 M€ (+94% 2014)
EBITDA 356 M€ (-19.8% 2014)
•
G&P
R&D
E&P
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AGENDA
A NEW ERA IN THE UPSTREAM
SOLID DOWNSTREAM BUSINESS
SOLID FINANCIALS
SUSTAINABLE AND RESPONSIBLE GROWTH
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ENERGY CREATES ENERGY
A NEW ERA IN THE
UPSTREAM
A STRONG SET OF ASSETS
BRASIL
•
•
World-class
development
projects in Santos
basin
Focus on
Lula/Iracema
project execution
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MOZAMBIQUE
•
One of the largest
LNG development
projects worldwide
•
Unique key
features enhance
project
competitiveness
ANGOLA
•
Three producing
fields reached
peak production
•
Fields in block
14/14K and block
32 to be
developed
PORTUGAL
•
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
1FPSO Floating production storage offloading
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SANTOS BASIN: UNIQUE DEVELOPMENT OF WORLD-CLASS
PROJECTS
CIDADE DE ANGRA DOS REIS
CIDADE DE PARATY
• FPSO Cidade de Angra dos Reis e FPSO Cidade de
Paraty already producing at full capacity
20130128A72Q3632
CIDADE DE MANGARATIBA
• FPSO Cidade de Mangaratiba producing since
October 2014 has reached its peak of production on
1H2016
CIDADE DE ITAGUAÍ
• 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
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MULTISTAGE DEVELOPMENT FOR THREE SEPARATE
ACCUMULATIONS
• 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
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DE-RISKING OTHER RELEVANT PRE-SALT PROJECTS
• Carcará North and Carcará NW confirmed the
extension of the discovery
• Focus on maturing development solution for oil and
condensates
• DST in Carcará North proved high quality and
productivity
• Sépia East DoC submitted in November 2015
• DoC submission extended until March 2018 and gas
evacuation solution crucial for development
NOME DA APRESENTAÇÃO | 2016
• Sépia East to be unitised with Sépia (ToR)
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LEGISLATION FOR THE ROVUMA PROJECT APPROVED
Moçambique: Baçia do Rovuma
1GIIP-Gas
initially in place
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•
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
2015
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MATURE FIELDS BEING COMPLEMENTED BY NEW
DEVELOPMENTS
Angola
• Galp is involved in Angola since 1982
• 26 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
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PORTUGAL: SEVEN OFFSHORE BLOCKS IN THE ALENTEJO AND
PENICHE BASIN
Portugal – Alentejo Basin
Alentejo:
• Three blocks in the Alentejo basin: Santola,
Lavagante and Gamba
• 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
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STRONG PIPELINE OF PROJECTS TO DELIVER PRODUCTION
GROWTH
Working interest production(mboepd)
Production of operating & sanctioned
projects
CAGR 2015-20 – 25% - 30%
Operating & sanctioned projects production
 Iara
 Carcará
 Júpiter
 Pitú
 Rovuma Area 4
 Angola Bloco 14
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ENERGY CREATES ENERGY
SOLID
DOWNSTREAM
BUSINESS
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SOLID AND EFFICIENT DOWNSTREAM AND GAS BUSINESSES
Refining & Marketing
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SOLID AND EFFICIENT DOWNSTREAM AND GAS BUSINESSES
Gas & Power
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THE REFINERY UPGRADE INCREASED EFFICIENCY AND
COMPLEMENTARITY
Integrated refining system
• Efficient refining system, able to respond to market
needs replacing fuel oil production for diesel
Vaccum Visbreaker
Sulphur Recovery Unit
HDS Sour Water Stupper
Matosinhos
CDU upgrade
• Upgraded refining scheme was crucial considering
the current European refining environment
New tankage
• €1.4 bn investment made on upgrade project
generating returns since 2Q13
Hydrocracker
• 2015 refining margin of $6.6/bbl
Sulphur Recovery Unit
Deisobutanizer
Steam reformer
CDU upgrade
New tankage
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Sines
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3rd LARGEST PLAYER¹ IN IBERIA AND A GROWING PRESENCE
IN AFRICA
Marketing development clusters in Africa
Service station network in Iberia
•
Annual oil sales to direct clients
of 9,1 mton
• Improving refining and market integration
• 1,435 service stations by the end of 2015
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1 nº
of service stations
•
Network of 138 service stations across the African continent
•
African oil sales volume represent about 8% of the total volume
of direct client sales
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2nd NATURAL GAS PLAYER IN IBERIA &
ROBUST LNG TRADING ACTIVITY
Evolution of NG & LNG sales
4,5
4
4,1
4
3,8 3,7
3,5
•
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
3
3
2,5
3,8 3,8
2,2
2
1,5
1
0,5
0
2012
2013
Iberian Sales
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2014
Trading LNG
2015
22
STEADY CONTRIBUTION FROM REGULATED GAS & POWER
ACTIVITIES
Autonomous gas unit (AGU)
• Extensive infrastructure in Iberia includes a
distribution network of 12,348 km and stakes in
Iberian pipelines
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Cogeneration unit
• 173 MW of total capacity installed
3
ENERGY CREATES ENERGY
FINANCIAL
OUTLOOK
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.
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BALANCE SHEET
Balance Sheet¹
• 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
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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
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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
• 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
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CAPITAL INCREASINGLY DISPERSED IN THE MARKET
Galp shareholding struture
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Free float evolution
¹Market capitalization as of 31/01/16
Note: Parpública’s 7% stake placed through
exchangeable bonds
4
ENERGY CREATES ENERGY
SUSTAINABLE AND
RESPONSIBLE
GROWTH
30
SUSTAINABILITY FULLY INTEGRATED INTO OUR STRATEGIC
DECISION MAKING PROCESS
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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: http://www.galpenergia.com/EN/sustainability/Ourapproach/Paginas/Awards-and-acknowledgements.aspx
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Media Relations
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+351 961 773 444 (24 hours)
http://press.galpenergia.com
[email protected]
MEDIA KIT| 2016