Investor Presentation

Transcription

January 2012
Investor Presentation
Delivering growth through exploration and production
Solid foundations to deliver sustainable value creation
Outstanding
exploration
potential
Delivering
high
potential
projects
Upstream profitable growth
2
Investor Presentation – January 2012
Sound
downstream
business
Solid
capital
structure
Balanced funding
Outstanding exploration potential
Strong production growth
Sound downstream business
Solid capital structure
Final remarks
Appendix
3
Exploration activities in potential areas to further unlock value
Galp Energia geographical spread
Core area
Potential area
Galp Energia has over 40 exploration projects across four continents
4
A lot to de-risk from Galp Energia’s exploration portfolio
Prospective resources1 (Mln Boe)
Other areas
Brazil
2,550
Gas
2,550
494
494
Mean unrisked
Mean risked
Potential of Galp Energia
portfolio not only in Brazil
1
5
Resources at the end of 2010. Source: DeGolyer and MacNaughton.
Oil
Mean unrisked
Mean risked
Mixed portfolio with c.15% of
gas prospective resources
On the right track to gas portfolio diversification
Rovuma basin
▪ Galp Energia is an early mover
into deepwater offshore
Mozambique
▪ First exploration well confirmed
Rovuma as a world class province
▪ Mamba South estimated natural
gas in place up to 22.5 Tcf
▪ Mamba North being drilled, as
part of a larger exploration and
appraisal program
6
Drilling activity will continue focusing on high potential projects
7
Potiguar basin
BM-S-8
First exploration well scheduled for 1Q12
Drilling third exploration well in Carcará
Iara area
BM-S-24
Iara W started in 4Q11 to better understand the reservoir
Key appraisal well to be drilled in 2012
Other high potential assets to be developed outside Santos basin
Other Brazilian areas
8
Other areas
Amazonas basin
Pernambuco basin
Portugal
Campos basin
Espírito-Santo basin
East Timor
Final remarks
Appendix
9
Production target of 300 kboepd by 2020
Production targets 1 (kboepd)
15x
3x
300
70
20.6
Actual production
9M11
2015
2020
Production target mainly supported by the development of Brazilian assets
1
10
Working interest production
Unique upstream projects will enable sustainable production growth
11
Pre-salt Santos basin
Angolan assets
Galp Energia’s acreage in pre-salt Santos basin
comprises world-class discoveries
Presence in Angola rewarded with 26
discoveries
Lula/Cernambi WI production of more than 100 kbopd by 2020
12
FPSO deployment in Lula/Cernambi
Gross FPSO oil production capacity (kbopd)
9 FPSO already sanctioned, with 1st FPSO,
Cidade de Angra dos Reis, already producing
Gross installed oil capacity up to 1,270 kbopd
by 2017
Developing assets in Angola
13
Block 14 development areas
Block 32 development hubs
Block 14 new projects will ensure
production growth
Block 32 development through split hub concept, with
first oil date per FPSO expected by 2016 and 2017
Exceptional portfolio to offer sustained production growth
Contingent resources1 (Mln Boe)
Reserves2 (Mln Boe)
Brazil
Brazil
Angola
Angola
2,356
574
397
754
2C
3C
Pre-salt Santos basin major contributor
to contingent resources
2P
3P
Lula/Cernambi fields responsible
for over 90% of total reserves
1Working
2Net
14
interest resources at the end of 2010.
entitlement reserves at the end of 2010. 3P not available for Angola
Source: DeGolyer and MacNaughton
Final remarks
Appendix
15
Solid downstream business in place
Refining & Marketing
Total refining capacity
of 330 kbpd1
Nelson complexity of
7.72 in Sines refinery
and 10.72 in
Matosinhos Refinery
3rd player in Iberia
1,408 service stations
and 513 non fuel
stores in Iberia
Africa with 107
service stations and
84 non fuel stores
Annual sales of c.17
Mln tons refined
products
1
16
Gas & Power
Sourcing agreement
of 6 bcm of natural
gas
2nd
natural gas player
in Iberia with over
1,300 thousand
clients
≈ 11,000 km of NG
distribution network
Post upgrade capacity. Before the upgrade was 310 kbpd
complexity index. Nelson complexity before the upgrade of 6.3 in Sines and 9.4 in Matosinhos.
2 Post-upgrade
160 MW of total
capacity installed
1,200 GWh of annual
electrical power
generation
Upgrade project’s positive impact in earnings from 2012 onwards
Integrated refining system
▪ Investment of €1.4 Bln, from
which 95% of total capex already
invested
Vaccum Visbreaker
Sulphur Recovery Unit
Matosinhos
HDS Sour Water Stupper
CDU upgrade
New tankage
▪ Optimization of refining process
by using heavier crudes to
produce higher-value refined
products
Hydrocracker
Sulphur Recovery Unit
▪ Upgrade project steady
production by mid 2Q12
Deisobutanizer
Steam reformer
CDU upgrade
Sines
New tankage
▪ Improving our refining margin by
c. $3.0 - $3.5/bbl1
1 Diesel-fuel
17
oil spread assumption of c. $300/ton
Final remarks
Appendix
18
Cash-in of $5.2 Bln de-risking Brazilian assets
Brazilian portfolio1
▪ Deal with Sinopec valued Galp
Energia’s current portfolio at
$12.5 Bln
▪ Capital increase ensures
development of Brazilian projects
▪ Galp Energia remains the
controlling shareholder, fully
consolidating Petrogal Brasil
3P reserves of 554 million boe
3C contingent resources of 2,135 million boe
Risked prospective resources (mean estimate) of 188 million boe
1 Reserves
19
and resources as per DeGolyer and MacNaughton auditing at the end of 2010.
▪ Upside value from Brazilian
projects remains
Committed to a solid capital structure
Net debt to equity (%)
▪ Transaction execution delivers a
sound gearing level
114%
▪ Net Debt to Equity below target
of 50%
31%
▪ Further growth flexibility added
< 20%
1
Galp Energia
pre-transaction
Sector average
1 Includes
20
Galp Energia
post-transaction
a pool of super majors and of European integrated majors.
▪ Raising management focus on
strategic projects
E&P shaping cash flow profile going forward
Capex
2011
2012
E&P
2013
R&M
EBITDA
2014
2015
G&P
2011
EBITDA as is
Shift in capex focus towards upstream mainly driven by
development activities in Brazil
Upgrade project
Lula/Cernambi development
EBITDA growth supported by refining upgrade project
and Lula/Cernambi development
Illustrative and non-exhaustive
21
2015
Final remarks
Appendix
22
A well funded Company with profitable growth ahead
▪ Unlocking value through intensive portfolio de-risking
▪ Remarkable production growth within the sector
▪ Downstream business benefiting from upgrade project
▪ Solid capital structure unique among peers
23
SAVE THE DATE
Galp Energia
Capital Markets Day 2012
London
March 6th 2012
24
Final remarks
Appendix
25
Upstream portfolio
Brazil
Mozambique
Angola
Other areas
Corporate
Third quarter 2011 results
26
Strong presence in Brazil
Brazilian portfolio1
Assets
#
blocks
% Galp
Energia
Operator
Potiguar
Santos
Espírito Santo
Pernambuco
Campos
5
4
1
3
1
20%
10-20%
20%
20%
15%
Petrobras
Petrobras
Petrobras
Petrobras
Petrobras
Potiguar
14
50%
Petrobras/Galp
Sergipe / Alagoas
2
50%
Galp
Amazonas
3
40%
Petrobras
Basin
Offshore
Onshore
3P reserves of 554 million boe
3C contingent resources of 2,135 million boe
Risked prospective resources (mean estimate) of 188 million boe
1 Source:
27
DeGolyer and MacNaughton
Santos basin is a key area in current portfolio
Pre-salt Santos basin
▪ Galp Energia is the most
leveraged company to Santos
Basin
▪ Pre-salt Santos basin with 50 Bln
boe of reserves according to ANP
▪ Galp Energia was within the first
to cream the play, with Tupi
discovery in 2006
▪ 20 wells drilled in Galp Energia’s
four blocks with 100% success
rate
28
Targeting two new prospects of several identified
BM-S-8
▪ Bem-te-vi well in 2007 found a
reservoir of light oil with API in
the range of 28º-30º
▪ Detailed 3D seismic
interpretation ongoing
▪ Biguá drilling already concluded
and Carcará being spud
▪ EWT expected in 2012
▪ Declaration of commerciality to
be delivered by December 2012
29
Exploration activity still underway in BM-S-21
BM-S-21
▪ Presence established in 2001
▪ Caramba light oil discovery in
2007
▪ 3D seismic re-processing in 2009
and 2010
▪ 2nd exploration well will be
drilled in 2013
▪ Expected declaration of
commerciality by April 2015
30
Intense appraisal works to support Júpiter development
BM-S-24
▪ Significant oil, condensate and
gas discovery in 2007 with CO2
content
▪ One appraisal well scheduled for
2012 to study CO2 distribution
and oil/water contact
▪ Contingent EWT to be performed
before February 2016
commerciality until February
2016
31
BM-S-11 is a great success
BM-S-11
▪ Presence in BM-S-11 established
in 2000
▪ Lula (2006) and Iara (2008)
discoveries proved the existence
of light oil in the pre-salt interval
and Cernambi (2009) confirmed
existence of high quality
reservoirs
▪ 16 exploration and appraisal
wells drilled so far, with 100%
success rate
32
Iara’s development plan being prepared
Iara area
▪ In evaluation phase since the end
of 2008
▪ Recoverable oil and natural gas
between 3 – 4 bln boe
▪ Iara West started to be drilled in
4Q11
▪ EWT scheduled for 2013
commerciality by December 2013
33
Lula/Cernambi: the largest field development programme in 30 years
BM-S-11: Lula and Cernambi fields
▪ 14 wells drilled so far, with 100%
success rate
▪ Total recoverable volumes of 8.3
Bln boe, of which, 6.44 Bln boe in
Lula and 1.82 Bln boe in
Cernambi
▪ Declaration of commerciality and
field development programme
submitted to ANP in December
2010
34
Lula/Cernambi WI production of more than 100 kbopd by 2020
35
FPSO deployment in Lula/Cernambi
Gross FPSO oil production capacity (kbopd)
9 FPSO already sanctioned, with 1st
FPSO, Cidade de Angra dos Reis,
already producing
Gross installed oil capacity up to 1,270
kbopd by 2017
Several options being studied for oil export from Santos basin
Oil export solutions
▪ Oil export
solutions/infrastructure to be
implemented in parallel with
production capacity ramp-up
▪ Before 2013: oil export via DP
shuttle tankers
▪ After 2013: oil export via shallow
water transhipment unit (UOTE)
▪ Technical alternatives to UOTE
are also under study
36
Gas export solutions being evaluated
Gas export solutions
▪ Gas export: currently via
Mexilhão (10 M3/d capacity)
sufficient for three FPSO; after
2014, via Cabiúnas (13 M3/d
capacity)
▪ Beyond 2016 through FLNG or
incremental gas pipeline
▪ FLNG FEEDs already concluded,
with ongoing project evaluation
37
Other high potential Brazilian assets to be developed, outside Santos basin
Other Brazilian areas
Amazonas basin
Potiguar basin
Campos basin
Pernambuco basin
Espírito-Santo basin
38
Potiguar basin ready for the first deep water wildcat
Potiguar basin blocks
▪ Strong evidence of sandy
reservoirs
▪ First exploration Ararauna well
will be drilled in 1Q12 in block 760
▪ Significant resource potential
▪ Wildcat to be drilled before 2014
in block 665
39
Pernambuco is so far an unexplored basin
Pernambuco basin blocks
▪ Stake in three deep water blocks
acquired in 2007, covering an
acreage of 1,713 km2
▪ Geochemical anomalies are
indicators of the presence of an
active petroleum system
▪ 2,721 km2 of 3D seismic already
acquired in 2010 covering all the
block area
40
Starting de-risking resources in Espírito Santo
BM-ES-31
▪ An extensive portfolio of
prospects already mapped
▪ Ambrosia well was essential to
define next well location
▪ Integration of data will de-risk the
prospect which will be the target
of the second exploration well to
be drilled in 2012
41
Exploring Campos basin
BM-C-44
▪ Galp Energia present in Campos
basin since 2007
▪ BM-C-44 has an area of 84 km2
and is close to several oil
producing fields and oil
discoveries
▪ One exploration well expected to
be drilled in 2012, to test the main
target already identified
42
Amazonas basin is a new frontier province with high potential
Amazonas basin blocks
▪ 2D and 3D seismic to be
concluded
by 2012
▪ Great potential for natural gas,
supported by existing gas
discoveries close to Galp Energia
blocks
▪ Significant resource potential
▪ Six exploration wells to be drilled
until 2014
43
Upstream portfolio
Brazil
Mozambique
Angola
Other areas
Corporate
44
Rovuma basin is a world-class natural gas province
Rovuma basin Area 4 location
▪ Galp Energia entered into
deepwater offshore Mozambique
in 2007
▪ Rovuma basin contains one of the
largest Tertiary delta on the coast
of East Africa
▪ Discovery well encountered
continuous gas pay in high quality
Oligocene and Eocene sands
▪ Mamba South estimated natural
gas in place up to 22.5 Tcf
45
Rovuma basin is now a core exploration area
Rovuma basin
▪ Mamba North already being
drilled
▪ Two additional wells scheduled
for 2012, given the great
exploration potential in that area
▪ Outstanding NG volumes will
lead to large scale gas
development
46
Upstream portfolio
Brazil
Mozambique
Angola
Other areas
Corporate
47
Developing assets in Angola
Location
▪ Block 14 is the only producing
block (Kuito, BBLT and TL)
▪ 241 Mbbl of total reserves1 and
contingent resources2 at YE2010
▪ Fields in Block 14 (Malange,
Gabela, Lucapa, Negage, Lianzi
and Menongue) and Block 32 to
be developed
▪ 10% stake in LNG II project for
monetization of natural gas
assets
1 Net
48
entitlement 2P reserves
interest 3C contingent resources
2 Working
.
Ramp up production from Tômbua-Lândana’s CPT in Block 14
Tômbua-Lândana’s CPT
▪ 3rd producing field in block 14,
where Galp Energia holds a 9%
stake
▪ Development to date consists of
one CPT, one subsea center, 11
producers and three water
injection wells
▪ Hub concept, available to
incorporate further tie-backs
49
Malange development leveraging on existing infrastructure
Malange tie-back alternatives in block 14
▪ Malange discovery in 2007 with
appraisal programme completed
in 2010
▪ Two drilled wells justified
submitting conceptual
development plan to
concessionaire
▪ Engineering studies underway to
mature tie-back development
alternative
▪ Aiming for project acceleration
with contractual first oil date in
2016
50
Lucapa progressing towards first oil
Lucapa’s development area in block 14
▪ Lucapa discovery in 2007 with
appraisal programme complete in
2010 with Lucapa-6
▪ Six exploration and appraisal
wells drilled justified submitting
conceptual development plan to
concessionaire
▪ Engineering studies ongoing to
select optimal development
alternative
▪ Contractual first oil expected for
2016
51
Kaombo with split hub concept
Block 32 development hubs
▪ Kaombo “Split Hub” concept
approved
▪ Engineering optimization studies
ongoing to mature “Split Hub”
concept
▪ Two FPSO supporting six
development areas with an
aggregated capacity of
c.200 kbopd
▪ First oil date staged per FPSO
expected by 2016 and 2017
52
Exploring natural gas reservoir in Angola with LNG II project
LNG II project
▪ Galp Energia is part of the first
integrated natural gas project
consortium in Angola since 2007
▪ Exploration and appraisal works
to establish gas reserves base for
LNG II
▪ First appraisal well Garoupa-2 in
Block 2 successfully completed in
the beginning of 2011
53
Upstream portfolio
Brazil
Mozambique
Angola
Other areas
Corporate
54
Exploring new frontier areas
East-Timor
55
Portugal
▪ First exploration well drilled in 2011
gathered valuable subsurface information
▪ Exploration now focused on 3D seismic
▪ Evaluation ongoing to determine next well
to be drilled
▪ First exploration well as early as 2013,
pending on evaluation outcome
Upstream portfolio
Brazil
Mozambique
Angola
Other areas
Corporate
56
Shareholder structure and shareholders agreement
Shareholder structure
25,32%
FREE-FLOAT
7,00%
PARPÚBLICA
 100% Portuguese State
 Exchangeable bonds
Shareholders’
Agreement
▪ Shareholders’ agreement in
place until March 2014
 55% Amorim Group
33,34%
57
AMORIM ENERGIA
1,00%
CGD
33,34%
ENI
 45% Sonangol
▪ The parties may only sell their
holdings in one single block
 100% Portuguese State
▪ Parties will have either a preemptive right to buy or a tagalong right to join a sale to a
third party
A focused management team
Chief Executive Officer
Manuel Ferreira
De Oliveira
58
Head of Refining,
Supply and Logistics
Head of Exploration
& Production
Head of Oil Marketing
Chief Financial Officer
Head of Gas & Power
André Ribeiro
Fernando Manuel dos
Santos Gomes
Carlos Gomes da Silva
Claudio De Marco
Fabrizio Dassogno
Upstream portfolio
Brazil
Mozambique
Angola
Other areas
Corporate
59
Net profit reached €61 Mln in 3Q11
Profit & Loss (€Mln)
3Q11
Turnover
YoY
QoQ
9M11
YoY
4,277
3,590
+19%
(2%)
12,429
+19%
EBITDA
221
223
(1%)
(4%)
585
(14%)
E&P
63
37
+69%
(16%)
186
+43%
R&M
74
126
(41%)
(22%)
191
(41%)
G&P
79
56
+41%
+34%
199
(6%)
4
4
+10%
+165%
9
(13%)
111
136
(19%)
(8%)
285
(27%)
17
18
(4%)
+13%
53
+2%
Financial results
(29)
(18)
(66%)
+17%
(94)
(32%)
Taxes
(35)
(43)
(19%)
+27%
(63)
(37%)
Net Profit
61
93
(34%)
(13%)
172
(35%)
Net Profit (IFRS)
94
96
(2%)
(6%)
385
+8%
Others
EBIT
Associates
60
3Q10
▪ G&P solid performance
driven by higher supply
margins
▪ R&M earnings still
impacted by negative
refining margin
environment
▪ EBIT affected by non-cash
costs related to DD&A in
Angola
Net debt increase driven by transformational capex execution
Balance sheet (€Mln)
Sep.2011
Fixed assets
Sep - Jun
Dec.2010 Sep - Dec
5,884
5,782
+103
5,426
+458
2,494
2,350
+144
1,981
+513
Strategic stock
1,060
1,048
+12
792
+268
Other assets (liabilities)
(371)
(396)
+25
(336)
(35)
Working capital
(231)
(344)
+113
(333)
+103
Net debt
3,378
3,208
+170
2,837
+541
Equity
2,964
2,881
+83
2,711
+253
Capital employed
6,343
6,090
+253
5,548
+794
Net debt to equity
114%
111%
2.6 p.p.
105%
9.3 p.p.
Work in progress
61
Jun.2011
▪ Capex decelerating with
refining upgrade project
coming to its end
▪ Work in progress of €2.5 Bln,
not yet generating return
▪ Net debt increase of €170
Mln, maintaining net debt to
equity at its highest levels
Additional facilities of €0.91 Bln with support from international banks
M/L-term debt reimbursement profile (€Mln)
1.000
▪ Major debt reimbursement
scheduled for 2012-14 period
800
600
400
200
0
2011
2012
2013
2014
+2015
Debt structure as of September 2011
49%
71%
51%
29%
Fixed
M/L-term
Floating
M/L-term
1
62
Short-term
Liquidity position as of end of September 2011
M/L-term
▪ Total net debt of €3.4 Bln,
with an average life of 2.3
years
▪ Average interest rate of 4.3%,
up 88 b.p. YoY
▪ 60% of current additional
facilities already contract
guaranteed
Short term outlook for 4Q11
▪ 4Q11 working interest production targeted at c.23 kbopd
▪ Refining margin to be positively impacted by Matosinhos refinery upgrade
▪ Marketing volumes down QoQ, still impacted by the Iberian macro economic
environment
▪ Natural gas volumes to increase QoQ supported by seasonality and trading
volumes
63
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 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; developments of Galp Energia’s
markets; the impact of regulatory initiatives; and the strength of Galp Energia’s competitors. The forward-looking 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 Galp Energia’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. 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 does 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.
64
Investor Relations team
Tiago Villas-Boas, Head of IR
Cátia Lopes
Inês Santos
Maria Borrega
Pedro Pinto
Samuel Dias
+351 21 724 08 66
[email protected]
www.galpenergia.com

Investor Presentation

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