AI Terminal
Galp Energia
Earnings Release • Jan 28, 2020
1908_iss_2020-01-28_f1a06a88-7172-479c-823e-5705a7214638.pdf
Earnings Release
Open in ViewerOpens in native device viewer
January 28, 2020
This trading update aims to provide the macroeconomic, operational and trading conditions experienced by Galp during the fourth 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 February 18.
Market Indicators
| 4Q18 | 3Q19 | 4Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Exchange rate (EUR/USD) | 1.14 | 1.11 | 1.11 | (3%) | (0%) |
| Dated Brent price (USD/bbl) | 68.8 | 62.0 | 63.1 | (8%) | 2% |
| Japan/Korea Marker LNG price (USD/mmbtu) | 10.0 | 4.7 | 5.8 | (42%) | 23% |
| Iberian MIBGAS natural gas price (EUR/MWh) | 26.1 | 12.6 | 12.8 | (51%) | 2% |
| Dutch TTF natural gas price (EUR/MWh) | 24.7 | 10.2 | 12.6 | (49%) | 24% |
Source: Platts/MIBGAS
Exploration & Production
| 4Q18 | 3Q19 | 4Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Working interest production (kboepd) | 113.1 | 125.5 | 136.9 | 21% | 9 % |
| Oil production (kbpd) | 99.8 | 111.0 | 121.8 | 22% | 10% |
| Net entitlement production (kboepd) | 111.7 | 124.0 | 135.1 | 21% | 9 % |
| Angola (kbpd) | 8.9 | 12.7 | 13.3 | 50% | 5% |
| Brazil (kboepd) | 102.9 | 111.3 | 121.8 | 18% | 9 % |
▪ Higher working interest production, benefiting from the ramp-up of Lula North FPSO, with the 4th producer connected in the quarter, and the start-up of the unit allocated to Berbigão-Sururu in November. There was no relevant maintenance during the period, with the remaining units in Brazil producing close to plateau levels.
▪ Production in Angola continued to benefit from the ramp-up in block 32.
January 28, 2020
Refining & Marketing
| 4Q18 | 3Q19 | 4Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| Raw materials processed (mmboe) | 19.3 | 20.6 | 26.5 | 38% | 29% |
| Galp refining margin (USD/boe) | 4.3 | 3.9 | 3.3 | (24%) | (15%) |
| Refined product sales (mton) | 3.6 | 3.9 | 4.2 | 18% | 8% |
| Sales to direct clients (mton) | 2.2 | 2.3 | 2.0 | (5%) | (9%) |
▪ Refining raw materials processed are higher both QoQ and YoY, as comparable periods were impacted by planned maintenance works and operational restrictions.
Gas & Power
| 4Q18 | 3Q19 | 4Q19 | Var. YoY | Var. QoQ | |
|---|---|---|---|---|---|
| NG/LNG total sales volumes (mm3 ) |
1,725 | 1,803 | 1,992 | 16% | 10% |
| Sales to direct clients (mm3 ) |
1,181 | 1,131 | 1,224 | 4% | 8% |
| Trading (mm3 ) |
544 | 673 | 768 | 41% | 14% |
▪ Higher total sales of NG/LNG, mainly driven by the significant increase in network trading sales YoY, but also supported by higher sales to direct clients, mostly to the industrial segment.
Results presentation
The 4Q19 results will be disclosed to the market on February 18, before the opening of Euronext Lisbon.
On that day, the Company will hold its Capital Markets Day 2020 in London, during which the management will present a strategic update and financial outlook, together with the 2019 full year results. A webcast of the event will be available.
Galp Energia, SGPS, S.A. Investor Relations
Pedro Dias, Head Otelo Ruivo, IRO Inês Clares Santos João G. 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.