Galp Energia presents today, at its Capital Markets Day 2013 in London, its strategy overview and financial outlook, as well as key information on its upstream portfolio and activities.
The key material information to be disclosed today is summarized as follows:
- Exploration resources (mean estimate unrisked) increased 14% in 2012 to 3,203 mboe, driven by recently farmed in exploration areas, namely in Morocco and Namibia;
- 3C contingent resources presented a rise of 21% in 2012 to 3,245 mboe, mainly following the exploration activities being carried out during 2012 in Mozambique and the appraisal activities in Brazil;
- 3P reserves increased by 10% to 783 mboe in 2012, following the appraisal and development activities carried out at the Lula/Iracema field in the pre-salt Santos basin, in Brazil;
- Exploration strategy envisages the building of a lasting portfolio that comprises a drilling programme, which meets Galp Energia’s target of drilling 7-10 high impact wells per year, with the goal of unlocking 100-200 mboe per year, thus enabling production sustainability at 300 kboepd beyond 2020;
- The scheduled drilling programme for 2013 anticipates the drilling of up to 10 key wells, which combined target 300 mboe, net to Galp Energia, namely in Brazil, Mozambique and Namibia;
- Galp Energia’s production target for 2020 of 300 kboepd is on track and will be attained through the already identified projects and supported beyond that year by the new ventures activity;
- The Lula /Iracema project is progressing according to plan, with the next FPSO, Cidade de Paraty, to start production in May and expected to reach full capacity in 18 months, a period that will decrease for future FPSO as the project moves forward;
- Recovery factor improvement of Lula/Iracema area to 28%, from the previous 23%, when the Declaration of Commerciality was submitted, in December 2010;
- Annual estimated capex of c.€1.4-1.6 bn, mainly channeled to the upstream business, thus reflecting the impact of development of Carcará, Júpiter and Iara in Brazil, the LNG project development in Mozambique and Block 32 in Angola. For 2013, capex is estimated to reach €1.2-1.4 bn;
- Estimated Ebitda CAGR to be over 25% between 2012-2017, with the upstream accounting for around 70% of the total Ebitda by 2017. In 2013, Ebitda is estimated at €1.1-1.3 bn;
- Galp Energia remains committed to a strong capital structure with net debt/Ebitda rising to c.2x and falling rapidly from 2016 onwards;
- Dividend payment of €0.24 per share concerning the 2012 fiscal year, in line with dividend policy.
The full version of the announcement is attached to this e-mail.
The presentations are scheduled to start at 09.00 am, and should last until 12.30 a.m. In order to access to the live webcast of this event, please click here.
All the presentations will be made available on Galp Energia’s website throughout the morning, as each speaker concludes its intervention. To access the presentations, click here.
Source: Galp Energia, SGPS, S.A.