Galp Energia

Earnings Release • Oct 30, 2023

3Q23 Results

30 October 2023

6

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3Q23 Highlights

Operating momentum and capital discipline driving robust financial performance

€1,057 $m$ Ebitda

$\epsilon$ 716 m OCF

$\epsilon$ 161 m Net capex

$\epsilon$ 497 m FCF

$\epsilon$ 1.2 bn Net debt

$0.3_x$ Net debt to Ebitda

Strong operating performance across all divisions...

... successfully capturing the commodities cycle...

... leading to robust cash generation and further reduction of net debt

Upgrading 2023 operating and financial guidance

galp

Upstream

Delivering from superior and highly resilient portfolio

$125$ kboepd

WI Production (exc. Angola)

$84$ \$/bbl Oil realisations

$41$ \$/boe Gas realisations

$2.9$ \$/boe Production costs

3Q23

• WI production in Brazil supported by normalised operating efficiencies
• Mozambique Coral FLNG reaching plateau levels $\bullet$
• Bacalhau North appraisal well drilling ongoing to support $\bullet$ phase II development concept definition

Outlook

$c.120$ kboepd WI production in 2023

$>115$ kboepd WI production in 2024+ until Bacalhau starts

Namibia

Spud on Nov.23 2 back-to-back wells, including contingent dynamic testing

Renewables & New Businesses

Continue to develop a value driven renewables integration

3Q23 Results

3Q23

• Capturing continued robust Iberia market prices
• Generation supported on seasonally high irradiation despite slight impact by hail in one park
• Reducing Brazil pipeline in early stages of development

Outlook

• Continued Iberian capacity build-up, with 50 MW online already in October, despite persistent licensing delays
• Revaluating Brazilian developments under challenging market conditions (previously planning c.1 GW operating by 2025)
• Disciplined execution to ensure returns and portfolio integration

¹ Last Twelve Months OCF.

Industrial & Midstream

Supportive refining environment and increased supply & trading flexibility

$22.4_mboe$

Raw materials processed

$14.6$ \$/boe Refining margin

$2.6$ \$/boe Refining operating costs

$13.1$ _TWh

NG / LNG supply & trading sold volumes

3Q23

• Refining performance supported on high availability $\bullet$ and cracks environment
• Midstream maintaining positive momentum $\bullet$ supported by supply and trading improved flexibility
• Sanctioning key low carbon projects to transform $\bullet$ and decarbonise Sines industrial complex

Outlook

• Sines overall planned maintenance until November-end $\bullet$
• On track for I&M full year Ebitda guidance of c.€900 m $\bullet$
• Start of construction of HVO and green H₂ units in Sines $\bullet$ and demolition works in Matosinhos (provisioned)

Sines transformation and decarbonisation

with Final Investment Decision on two large scale projects

2025 Expected start up

$c.\epsilon$ 550_m Total Galp capex

$c.800$ ktpa Scope 3, CO₂e reduction

Advanced Biofuels Unit

Renewable diesel & SAF

Galp and Mitsui JV (75/25)

EPCM awarded to Technip / Technoedif

$270$ ktpa

Renewable biofuels capacity $c.\epsilon$ 400 m Gross capex $(@100\%)$

Green hydrogen project

Substitute c.20% of current grey $H_2$ production Renewable power & industrial recycled water usage Plug Power electrolyser & Technip awarded EPCM

100 MW Electrolysis capacity

$c.\epsilon$ 250 m Total capex

Commercial

Strong contribution from business under transformation

$1.8_mton$ Oil products sales

$4.3$ TWh Gas & Power sales

Current EV charging network

3Q23

. Aviation sales continued growth, already surpassing pre-Covid levels

• Retail Iberia oil volumes and convenience supported by higher seasonal mobility
• Optimizing gas & power client base to increase B2B sales

Outlook

• Aggressive commercial discount campaign to support clients under persistent high price environment
• Full year Ebitda expected at >€300 m
• Aiming to have c.5 k EV charging points installed by YE23

$+12%$ Convenience Ebitda

increase YoY

$c.25%$

Convenience weight on Ebitda

galp 6

Financial Overview

3Q23

3Q23 robust earnings despite elevated tax level

Strong operating momentum capturing increased macro environment

Strong cash flow generation

supported by operating contribution and favourable pricing environment

3Q23 Cash flow $(\epsilon m)$

OCF & CFFO driven by strong divisional performance but impacted by €116 m from extraordinary taxes, of which $\epsilon$ 41 m related to CESE

Capex reflecting increased execution pace and already including Namibian exploration campaign

Net Capex includes interim distributions from Angolan subsidiaries held for sale

Net debt reduced to €1.2 bn with net debt to RCA Ebitda at 0.3x

FY2023 guidance updated

on the back of improved operations and stronger macro

FY2023 (€ bn)

2023 macro assumptions:

Brent \$83/bbl

Refining margin \$11/boe

EUR:USD1.08

Solar captured price €75/MWh

Iberian PVB gas price €40/MWh

Improved operating performance and slightly more favourable macro environment

$\epsilon$ 0.6 bn of divestments

assuming Angola upstream disposal completion by YE23

Sales proceeds partially being received through interim dividends and down payment (€209 m in 9M23)

Disclaimer

This document may include forward-looking statements. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements express future expectations 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 th 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 ac 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 expectatio 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", "anticipate","believe", "consider","could", "develop", "envision", "estimate", "expect", "qoals", "intend", "may", "objectives", "outlook", "plan", "potential", "probably", "project", "pursue", "risks", "schedule", "seek", 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 additi 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 amortisa 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 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 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 may include data and information provided by third parties, 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 m 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 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 a 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 su in any jurisdiction or an inducement to engage in any investment activity in any jurisdiction.

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