Galp Energia

Earnings Release • May 5, 2023

1Q23 Results

5 May 2023

6

galp

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Disclaimer

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r Recent developments

1Q23 Highlights

Operating performance driving robust cash generation and leading to further deleveraging

€864 m Ebitda

€363 m OCF1

€109 m Net capex

€352 m FCF

Net debt

0.4 , Net debt to Ebitda

Solid operating performance across all business segments

Midstream returning to positive contribution leveraging on increased flexibility

Sound performance and confidence on operating fundamentals reinforcing 2023 guidance

Upstream

Steady operations in Brazil and Coral Sul commissioning as planned

120 kboepd

WI Production (exc. Angola)

76 ร/​ьы Oil realisations

49 \$/boe Gas realisations1

3.3 \$/boe Production costs

1Q23

• Production (exc. Angola) supported by Coral Sul ramp-up and increased efficiency in Brazil
• Oil realisations still reflecting high logistic and shipping costs

• Production costs remain amongst lowest in the industry

• Expect to complete Coral Sul commissioning and reach plateau production

• Continue drilling and sub-surface campaign in Bacalhau
• Secured drilling rig for exploration well in Namibia in 4Q23

Renewables & New Businesses

Generation growth and capturing energy management opportunities

1.4 gw

Renewables installed capacity

Equity renewable generation

108 €/MWh

Renewables realised sales price

15% LTM OCF1 / Invested Capital (operating assets)

1Q23

• Energy generation benefitting from higher irradiation and full contribution of 100 MW installed in 4Q22
• Leveraging on integrated model to opportunistically lock in sales and boost returns

G

• Maturing pipeline to support capacity build-up
• Continue to explore integrated energy management solutions to create value and reduce risk

> Industrial & Midstream

Capturing favourable refining environment and normalised gas trading operations

19.6mbge Raw materials

processed

14.3 s/be Refining margin

5.1 \$/boe Refining operating costs

10.7 Twh

ng / LNG supply & trading

1Q23

• Large planned maintenance successfully performed on the Sines hydrocracker
• Robust refining supported on international cracks environment and reduced energy costs
• Midstream positive contribution, despite persistent sourcing restrictions

ub

• Maintenance activities in the ADU and FCC planned for 4Q23
• Softer margins expected in 2Q23 but with lower operating costs (no maintenance impact)
• Midstream to continue robust contribution backed by trading gas

Commercial

Solid performance reflecting demand recovery

1 。 7 mton (+3% YoY)

Oil products sales

4.7 Twh

Gas & Power sales

2.6 k

EV charging points installed

1Q23

• Oil products sales supported by demand recovery, namely B2B aviation (close to pre-pandemic levels)
• Increased convenience contribution and acceleration of EV charging and decentralized solar solutions

G

• Continue transformation towards larger integration of lower carbon businesses
• Expecting steady demand recovery in Iberia

Financial Overview | Pr

€864m

Group RCA Ebitda

€363 m Group OCF

€109 m

Group net capex

Robust operating results

across all business units

Upstream

€548 m €74m Ebitda lower following declining oil & gas market prices, whilst OCF RCA Ebitda OCF reflecting high concentration of paid taxes in Brazil (phasing) Renewables & NB €35 m Performance driven by increased generation and above market RCA Ebitda OCF realised prices

€37 m

€32m Net Capex1

€38m

Net Capex1

Industrial & Midstream

Robust refining margin despite the maintenance effects and positive Midstream contribution benefitting from gas supply & trading

€235 m RCA Ebitda1

€235m OCF

€20 m Net Capex1

Commercial

Supportive oil sales and increased contribution from aviation, and in convenience and low carbon businesses

€71m RCA Ebitda €42m OCF

€(2) m Net Capex1

galp

¹Economic capex deducted by proceeds from divestments

Solid operating performance

supporting robust earnings

RCA Ebitda supported by robust performance across all business units

Lower DD&A, as result of Angola exclusion, supporting RCA Ebit

RCA Taxes including temporary €60 m windfall and export taxes in Iberia and Brazil, respectively

Strong FCF generation

leading to further deleveraging

1Q23 Cash flow (€ m)

Robust OCF despite concentration of taxes paid in Brazil (phasing effect)

Working capital release also reflecting lower inventories and commodity prices

Low Net capex light reflecting a still high execution during the rest of the year and the initial €77 m proceeds from the Angola upstream assets sale

Net debt reduction to €1.3 bn also including buybacks of €77 m

Net debt to RCA Ebitda at 0.4x

Galp's new Board & Executive Team - 2023-26 term

Filipe Silva | CEO (& Upstream)

Maria João Carioca | CFO

15

Non-executive Board members

O

Executive Board members

46%

Independent directors (non-executives)

67/ %

Women in the Board

Ronald Doesburg | Industrial

20 years of experience in the energy sector, holding leadership roles in downstream (Commercial, Chemical & Industrial). Recently was General Manager of Shell Jurong.

Galp executive member since 2012 (as CFO). Previous experience in investment

Seasoned executive with over 30 years experience in capital markets, financial

Galp executive member since 2022. Over 20 years experience in utilities and renewables sectors. Former Head of Enel Green Power in North America.

institutions and strategic consulting. Previously CFO of Caixa Geral de Depósitos.

banking for over 30 years and former Deutsche Bank Portugal CEO.

Georgios Papadimitriou | Renewables & New Businesses

Rodrigo Vilanova | Energy Management

Joined Galp in 2021 to lead Energy Management. Over 25 years of experience in executive and non-executive roles including BP, Cheniere, Petrobras.

João Diogo Silva | Commercial

Over 20 years in Galp. Heading the commercial B2C division and Galp Spain Country Manager. Large experience in finance and business transformation roles.

New leadership to execute and focus on transformation strategy

Highly experienced team with broad industry & international background

Balanced representation of independence and gender equality

Upstream organisation reporting directly to CEO

galp.com

Key Guidance for 2023 (unchanged)

Operating indicators

Upstream
WI production	kboepd	>110
Production costs	\$/boe	c.3
Renewables
Renewable capacity by YE	GW	1.6
Industrial & Energy Management
Sines refining throughput	mboe	c.75
Sines refining costs'	\$/boe	3-4
Commercial
Oil products sales to direct clients	mton	7.4
Convenience Ebitda growth YoY (from €70 m)	0/0	+10
EV charging points by YE		>5 k
Decentralised energy installations by YE		>25 k

Financial indicators

RCA Ebitda	€ bn	3.2
Upstream	€ bn	>2
Renewables & NB	€ m	>180
Industrial & Midstream	€ m	>550
Commercial	€ m	c.300
OCF	€ bn	2.2
Upstream	€ bn	>1.1
Renewables & NB	€ m	>160
Industrial & Midstream	€ m	>550
Commercial	€ m	c.230
Net capex (avg. 2023-25)	€ bn	c.1

> Macro assumptions and sensitivities

considered on guidance provided

Macro assumptions	2023	2074525
Brent price	\$85/bbl	\$80/bbl
Galp refining margin	\$9/boe	\$6 - 7/boe
Iberian PVB natural gas price	€60/MWh	€60/MWh
Solar captured price	€120/MWh	€100/MWh
EUR:USD	1.15	1.15

2023 sensitivities (€ m)	Change	Ebitda	OCF
Brent price	\$5/bbl	150	85
Galp refining margin	\$1/boe	65	65
EUR:USD	0.05	120	80
Solar captured price	€10/MWh	30	25

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