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Galp Energia
Earnings Release • Oct 8, 2019
1908_iss_2019-10-08_da5aad66-2d03-47a7-8ba9-b17d746fc49f.pdf
Earnings Release
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This trading update aims to provide macroeconomic, operational and trading conditions experienced by Galp during the third quarter of 2019.
Margins, prices, production and other data referred to below are averages for the period and currently provisional. All such data is subject to change and may differ from the final numbers, which will be reported on October 22.
Market Indicators
| 3Q18 | 2Q19 | 3Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Exchange rate (EUR/USD) | 1.16 | 1.12 | 1.11 | (4%) | (1%) |
| Dated Brent price (USD/bbl) | 75.2 | 68.9 | 62.0 | (18%) | (10%) |
| Japan/Korea Marker LNG price (USD/mmbtu) | 10.7 | 4.9 | 4.7 | (56%) | (4%) |
| Iberian MIBGAS natural gas price (EUR/MWh) | 26.9 | 14.9 | 12.6 | (53%) | (15%) |
| Dutch TTF natural gas price (EUR/MWh) | 24.5 | 13.1 | 10.2 | (58%) | (22%) |
Source: Platts/MIBGAS
Exploration & Production
| 3Q18 | 2Q19 | 3Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Working interest production (kboepd) | 103.8 | 111.8 | 125.5 | 21% | 12% |
| Oil production (kbpd) | 93.1 | 99.5 | 111.0 | 19% | 12% |
| Net entitlement production (kboepd) | 102.3 | 109.8 | 124.0 | 21% | 13% |
| Angola (kbpd) | 7.4 | 12.2 | 12.7 | 72% | 4% |
| Brazil (kboepd) | 94.9 | 97.6 | 111.3 | 17% | 14% |
Higher working interest production, driven by the continued ramp-up of Block 32, in Angola, and Lula field in Brazil, where Lula Extreme South FPSO achieved plateau production during the period.
| 3Q18 | 2Q19 | 3Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Raw materials processed (mmboe) | 28.0 | 26.1 | 20.6 | (26%) | (21%) |
| Galp refining margin (USD/boe) | 5.8 | 3.0 | 3.9 | (33%) | 28% |
| Refined product sales (mton) | 4.5 | 4.4 | 3.9 | (13%) | (12%) |
| Sales to direct clients (mton) | 2.3 | 2.3 | 2.3 | (2%) | (0%) |
During the period, planned maintenance works were performed in the Sines refinery, mostly focused on the atmospheric distillation unit, together with the implementation of energy efficiency projects in key units of this refinery as part of the "+\$1/boe" initiatives. In September, additional operational restrictions resulted in lower utilisation of the conversion units in the Sines refinery.
Gas & Power
| 3Q18 | 2Q19 | 3Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| NG/LNG total sales volumes (mm3 ) |
2,024 | 1,887 | 1,803 | (11%) | (4%) |
| Sales to direct clients (mm3 ) |
1,201 | 1,205 | 1,131 | (6%) | (6%) |
| Trading (mm3 ) |
823 | 682 | 673 | (18%) | (1%) |
Total sales of NG/LNG impacted by lower trading volumes YoY, with sales to direct clients declining YoY, mostly driven by lower volumes sold to the electrical and industrial segments.
Results presentation
The 3Q19 results will be disclosed to the market on October 22, before the opening of Euronext Lisbon. Galp will include an update of the key guidelines of the Company's capital allocation on the medium term.
The conference call will take place on October 22, at 11:30 a.m. (UK time). To listen to the conference call, please dial in 10 minutes before the scheduled time to ensure your registration. The conference call and webcast details are as follows:
Hosted by
- Carlos Gomes da Silva (CEO)
- Filipe Silva (CFO)
- Pedro Dias (Head of Strategy & IR)
- Otelo Ruivo (IRO)
Dial-in numbers
- UK: +44 (0) 207 192 8000 or +44 (0) 800 376 7922 (UK toll free)
- Portugal: +351 308 800 848
Webcast
https://edge.media-server.com/mmc/p/c5cumcgx (audio stream)
Galp Energia, SGPS, S.A. Investor Relations
Pedro Dias, Head Otelo Ruivo, IRO Cátia Lopes João G. Pereira João P. Pereira Teresa Rodrigues Contacts: Tel: +351 21 724 08 66 Fax: +351 21 724 29 65
Address: Rua Tomás da Fonseca, Torre A, 1600-209 Lisboa, Portugal Website: www.galp.com Email: [email protected]
Reuters: GALP.LS Bloomberg: GALP PL
This announcement may include forward-looking statements. Forward-looking statements are statements other than in respect of historical facts and accordingly actual events or results may differ materially from those expressed or implied by such forward-looking statements. Important factors that may cause actual results to differ from forward-looking statements are referred in the Annual Accounts Report of Galp for the year ended 31 December 2018. Galp does not intend to, and expressly disclaims 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 announcement to reflect any change in events, conditions or circumstances.