3/4/2014 | Other

Galp Energia’s Capital Markets Day 2014

At its Capital Markets Day 2014 in London, Galp Energia will present its strategic update, mainly focusing on its upstream activity and, in particular, on the Company’s prominent development projects in the pre-salt Santos basin, in Brazil, including the Lula/Iracema project, and in the Rovuma basin, in Mozambique.

Galp Energia’s Capital Markets Day 2014

“An integrated energy player focused on exploration and production”

Galp Energia presents today, at its Capital Markets Day 2014 in London, its strategic update and financial outlook, as well as key information on the Company’s prominent development projects.

The key material information to be disclosed today is summarized as follows:

  • Galp Energia anticipates a compound annual growth rate (CAGR) of production of around 40%, for the period 2013-2020, through the development of its sanctioned and pre-sanctioned projects;
  • Until 2020, the Company should deploy 14 additional FPSO in Brazil and Angola, and start the LNG project in Mozambique;
  • The Lula/Iracema project is being executed according to the plan, on time and on budget, being all the critical equipment already contracted;
  • Conducting intensive appraisal activities to accelerate time to commercial production of resources of pre-sanctioned projects in pre-salt Santos basin, in Brazil, and in Mozambique, and to increase the number of FPSO allocated to those projects;
  • 2013 exploration drilling campaign added c.300 mboe to contingent resources, in line with the target announced one year ago;
  • Scheduled drilling programme for 2014 includes the drilling of seven to nine exploration and appraisal wells, including one exploration well to be drilled in the Trident oil prospect in Morocco; 
  • Total 3P reserves and 3C contingent resources increased in 2013 to 4,630 mboe, driven by the discoveries in Brazil and Mozambique; 2P reserves and 2C contingent resources increased to 2,432 mboe;
  • In the downstream business, the Company aims to increase cash flow generation, namely through improved integration of the refining and marketing activities, increased energy efficiency and lower capital employed on those activities;
  • In the Gas & Power business, the goal is to continue to exploit LNG trading opportunities and maintaining a material natural gas outlet in Iberia, coupled with a flexible sourcing of natural gas and LNG;
  • Average annual estimated capex of c.€1.5 bn - €1.7 bn in the period 2014-2018, mainly channeled to the upstream business, namely to project development in Lula/Iracema and in Mozambique. For 2014, capex is estimated to reach €1.3 bn - €1.5 bn;
  • Estimated Ebitda CAGR for the period 2013-2018 above 25%, mostly driven by the upstream business. For 2014 Ebitda is expected to be €1.1 bn - €1.3 bn;
  • Commitment to a solid capital structure, with net debt to Ebitda reaching c.2x in 2015, falling quickly from 2017 onwards; 
  • ROACE is expected to increase from 5% in 2013 to over 15% at the start of the next decade, and capital employed is expected to show a twofold increase, following the planned investment in the upstream;
  • Dividend payment of €0.288 per share concerning the 2013 fiscal year, in line with dividend policy.

The full version of the announcement is in attachment.

The presentations are scheduled to start at 09.00 am, and should last until 11.40 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.