Galp Energia

Earnings Release • May 3, 2022

1Q22 RESULTS

Disclaimer

This document may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholder returns; liquidity; capital and operating expenditures; performance levels, operational or environmental goals, targets or commitments and project plans, timing, and outcomes; production rates; developments of Galp's markets; and impacts of the COVID-19 pandemic on Galp's businesses and results; any of which may significantly differ depending on a number of factors, including supply and demand for oil, gas, petroleum products, power and other market factors affecting them; the outcome of government policies and actions, including actions taken to address COVID-19 and to maintain the functioning of national and international economies and markets; the impacts of the COVID-19 pandemic on people and economies; the impact of Galp's actions to protect the health and safety of its employees, customers, suppliers and communities; actions of Galp's competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the actions of consumers; other legal and political factors, including changes in law and regulations and obtaining necessary permits; unexpected operating events or technical difficulties; the outcome of commercial negotiations, including negotiations with governments and private entities; and other factors discussed in Galp's Management Report & Accounts filed with the Portuguese Securities Market Commission (CMVM) for the year ended December 31, 2021 and available on our website at galp.com. This document may also contain statements regarding the perspectives, objectives, and goals of Galp, namely concerning ESG (Environmental, Social & Governance) objectives, including with respect to energy transition, carbon intensity reduction or carbon neutrality. An ambition expresses an outcome desired or intended by Galp, it being specified that the means to be deployed may not depend solely on Galp. Galp's business plans and budgets include investments that will accelerate the decarbonization of the Company over the next decade. These business plans and budgets will evolve over time to reflect its progress towards the 2050 Net Zero Emissions target. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements express future expectations that are based on management's expectations and assumptions as of the date they are disclosed and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such those statements. Accordingly, neither Galp nor any other person can assure that its future results, performance or events will meet those expectations, nor assume any responsibility for the accuracy and completeness of the forward-looking statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Galp to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections, and assumptions. These forward-looking statements may generally be identified by the use of the future, gerund or conditional tense or the use of terms and phrases such as "aim", "ambition", "anticipate", "believe", "consider", "could", "develop", "envision", "estimate", "expect", "goals", "intend", "may'', "objectives", "outlook", "plan", "potential", "probably", "project", "pursue", "risks", "schedule", "seek", "should", "target", "think", "will" or the negative of these terms and similar terminology.

Financial information by business segment is reported in accordance with the Galp's management reporting policies and shows internal segment information that is used to manage and measure the Group's performance. In addition to IFRS measures, certain alternative performance measures are presented, such as performance measures adjusted for special items (adjusted operational cash flow, adjusted earnings before interest, taxes, depreciation and amortisation, adjusted earnings before interest and taxes, and adjusted net income), return on equity (ROE), return on average capital employed (ROACE), investment return rate (IRR), equity investment return rate (eIRR), gearing ratio, cash flow from operations and free cash flow. These indicators are meant to facilitate the analysis of the financial performance of Galp and comparison of results and cash flow among periods. In addition, the results are also measured in accordance with the replacement cost method, adjusted for special items. This method is used to assess the performance of each business segment and facilitate the comparability of the segments' performance with those of its competitors. This document also contains non-financial performance indicators, according to applicable legislation, including a carbon intensity indicator for energy products sold by Galp, that measures the amount of greenhouse gas emissions of those products, from their production to their end use, per unit of energy delivered. This indicator covers the direct GHG emissions of production and processing facilities (scope 1) and their indirect emissions associated with energy purchased (scope 2), as well as the emissions associated with the use of products by Galp's costumers (scope 3). The same emissions are considered for products purchased from third parties and sold or transformed by Galp. For a complete definition of scopes 1, 2 and 3 and the methodology used by Galp for this indicator please refer to Galp's website at galp.com. This document may include data and information from sources that are publicly available. This document may also include data and information provided by third parties, including Wood Mackenzie, Rystad and market analysts, which are not publicly available. Such data and information should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by those third parties in writing. To the fullest extent permitted by law, those third parties accept no responsibility for your use of such data and information except as specified in a written agreement you may have entered into with those third parties for the provision of such data and information.

Galp and its respective representatives, agents, employees or advisers do 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 document to reflect any change in events, conditions or circumstances. This document does not constitute investment advice nor forms part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or otherwise acquire securities of Galp or any of its subsidiaries or affiliates in any jurisdiction or an inducement to engage in any investment activity in any jurisdiction.

Recent developments

1Q22 overview

01

3 1Q22 Results

Prompt response to the Russia – Ukraine war

Galp deplores the Russian acts of aggression against the people of Ukraine

Business continuity

• First Integrated Energy Company announcing elimination of direct or indirect exposure to Russian crudes and petroleum products
• No joint ventures with any Russian entities
• Ensuring no impacts on the supply of gas and fuels to the Portuguese market

Social response

• Donation of fuel and related costs for humanitarian flights to Portugal
• Partnerships for the supply of energy and goods to refugee centres
• Trainee program designed for Ukrainian refugees

€6.5 ^m

Total donation for humanitarian support

1Q22 highlights

Strong performance supported by macro

conditions and operational improvement

Robust operational results,

with upside limited by pricing lag effects and working capital build (macro and margin accounts)

Net debt flat vs YE21 with leverage ratio under 1x and expected to decrease

1Q22: Upstream

Strong contribution benefiting from macro and operational improvement

131 kboepd WI Production +5% YoY

102 \$/bbl Oil realisations indicator1 +70% YoY

Ebitda (€m)

Quarter highlights

Higher production reflecting improved operational performance and lower maintenance levels

Improved realisations from oil trades and significant uplift from new gas contracts in Brazil (gas price indicator up c.4x QoQ)

Outlook

FY22 production guidance flat YoY and hedging c.6 mbbl at c.\$80/bbl Brent

Coral FLNG ahead of plan and below budget with first gas expected in 2H22

Jaca exploration well (São Tomé and Príncipe) spud in April and reassessing PEL83 potential in Namibia

¹ Oil realisation indicator of \$102.2/bbl in 1Q22, gas realisation indicator of \$43.6/boe and average discount to Brent (including oil and gas) of \$6.2/boe.

1Q22: Commercial

Recovery trend despite seasonal weaker contribution

1.3k EV charging points 2x YoY

1.7 mton

Oil products sales +25% YoY

Ebitda (€m)

Quarter highlights

Oil volumes sold following market recovery and increasing electricity and gas customer base

Pressured price environment not passed through entirely to final clients

Reallocating costs from new growth platforms1 and transformational projects

Outlook

Q2/Q3 to benefit from seasonal effects, namely in retail and aviation

Continue expanding new services: non-fuel, EV network, mobility solutions

Maintaining guidance for FY22 despite challenges from current price environment

¹ Contribution from platforms Galp Solar and Flow, developed by the New Business division migrated to Commercial division.

1Q22: Industrial & Energy Management

Strong refining performance offset by macro volatility led supply impacts

6.9 \$/boe

Refining margin (inc. energy and CO2 costs)

>90 %

System availability

Ebitda (€m)

Quarter highlights

Improving industrial operational and safety performance

Successfully capturing current refining environment, despite higher energy costs

Significant oil supply pricing lag impact following the commodities price hike

FID for 2 MW green hydrogen pilot to start in 2023/24

Outlook

Sines fully available expecting normal utilisation, despite potential VGO constraint

Strong refining margins from high distillates cracks, with Galp hedging part of its throughput1

Potential restrictions in NG/LNG sourcing to persist

Advancing with HVO and green hydrogen projects in Sines

1Q22: Renewables & New Businesses

Strong renewables performance and advancing in exciting new opportunities

243 GWh Ren. generation +27% YoY

1.2 GW Capacity under operation1

Pro-forma Ebitda2 (€m)

Quarter highlights

New 50 MW solar PV project brought online in Spain

Increased generation from improved operating availability and capacity build up

Setúbal selected as location for the lithium conversion unit (Aurora JV)

Outlook

150 MW solar PV brought online in April

Expecting to start operations >200 MW in 2H22 in Iberia, o.w. 144 MW in Portugal

De-risking existing development portfolio

Expanding and diversifying portfolio through early stage projects

Expanding solar and wind portfolio funnel

to support Galp renewables operational targets

Galp renewable funnel of 9.6 GW

Recent developments

New agreements to acquire the rights of solar PV and wind projects in Brazil

Solar PV projects

216 MW Wind project

Early entry in attractive portfolio and deal terms1

Starting to diversify into wind

Operating capacity

Accessing material pipeline, to support growth and optionality

Evaluating organic moves in other geographies

Executing our distinctive investment proposition

to thrive through the energy transition

Growth from established businesses

Bacalhau and Coral projects being executed on-time and on-budget

Successfully progressing on Industrial and Commercial transformation

Growth from low carbon businesses

Deploying new renewable solar capacity and expanding portfolio

Advancing with green hydrogen and battery value chain projects

Competitive shareholder distribution

2021 final interim dividend to be paid in May (€0.25/sh)

Share buyback authorisation granted by AGM and €150 m programme to start in mid-May up to Nov/Dec

Financial overview

1Q22 results

02

12 1Q22 Results

€869 ^m 1Q22 Group RCA Ebitda

€638 ^m 1Q22 Group OCF

€122 ^m 1Q22 Group net capex

1Q22: Strong performance

supported by macro conditions and operational improvement

Upstream	803	576	129
High cash contribution from	€	€	€
improved performance and	m	m	m
macro	RCA Ebitda	OCF	Net capex1
Commercial	56	55	6
Contribution impacted by	€	€	€
seasonality and price pressure,	m	m	m
especially on gas & power	RCA Ebitda	OCF	Net capex1
Industrial & EM	2	1	7
Strong refining performance,	€	-€	€
offset by c.€90 m negative lag	m	m	m
in oil supply pricing formulas	RCA Ebitda	OCF	Net capex1
Renewables pro-forma2	30	30	39
Strong results benefiting from	€	€	€
merchant exposure and increased	m	m	m
generation	RCA Ebitda	OCF	Net capex1

1Q22: RCA Ebitda of €869 m

Strong operating income

Ebit reflecting non-cash impairment in Upstream of €120 m related with exploration and appraisal assets in Brazil

Associates up YoY reflecting the increasing contribution from renewables

RCA net income of €155 m, with IFRS net income reflecting special items of -€320 m, mostly related with mark-tomarket NG derivatives

1Q22 P&L (€ m)

14 1Q22 Results

Adjusted operating cash flow of €638 m

with cash conversion limited by temporary working capital effects

High OCF supported by Upstream and Industrial contributions

CFFO reflecting a WC build from the spike in the commodities prices and gas derivatives margin accounts (to be reversed throughout 2022)

FCF of €30 m, or €254 m if excluding the temporary margin accounts effects

Net debt up to €2.4 bn reflecting the WC build and distributions to minorities

Net debt to RCA Ebitda at 0.96x (or 0.62x if excluding the margin accounts effects)

2022 outlook

Capturing supportive environment while reshaping portfolio

Plan's assumptions

Brent \$75/bbl | Refining margin \$4-5/boe | Solar captured price €150/MWh

Upstream

FY22 production guidance unchanged with operational contribution driven by strong oil price environment

Commercial

Maintaining FY22 guidance, despite pressured by price environment

Industrial & EM

Expecting strong refining performance, while Energy Management still limited by trading gas and commodities prices volatility

Renewables & New Businesses

Capturing favourable environment and monitoring power prices potential regulations

2022 expected distributions

€0.52/sh Base dividend (+4 YoY)

Full 1/3 OCF Total distributions (Base dividend + Buybacks)

03

galp.com

Key guidance for 2022

Operational indicators

Upstream
WI production	kboepd	Flat YoY (2021: 127)
Upstream production costs	\$/boe	<3
Commercial
Oil products sales to direct clients	mton	c.7.0
EV charging points growth vs 2021	-	>2x (2021: c. 1k)
Industrial & Energy Management
Sines refining throughput	mboe	c.90
Sines refining cash costs	\$/boe	c.2.0
Renewables
Renewable generation capacity by YE (@100%)	GW	1.4
Renewable generation (@100%)	TWh	>2.0

Financial indicators (consolidated, except otherwise stated)

RCA Ebitda	€ bn	c.2.7
Upstream	€ bn	c.2.2
Commercial	€ m	c.300
Industrial & Energy Management	€ m	200 - 250
Renewables pro-forma	€ m	180 - 200
OCF	€ bn	c.2.0
Upstream	€ bn	>1.5
Commercial	€ m	c.230
Industrial & Energy Management	€ m	200-250
Renewables pro-forma	€ m	>140
Net capex	€ bn	c.1.0
Net debt to RCA Ebitda by YE		<1x
Total expected distributions to shareholders		1/3 OCF

galp.com