Galp Energia SGPS S A : Presentation transcript - 1Q - 2024

1Q24 Results

Results' Presentation Transcript

April 30, 2024

Welcome everyone and thank you for watching this summary of Galp's 1st quarter results.

The quarter was marked by solid operational performance, maintaining our unwavering commitment to disciplined strategic execution.

Upstream demonstrated solid production levels, aligned with our expectations considering higher planned maintenance activities in Brazil. Upstream's financial performance was once again supported by the low-cost and reliable nature of our portfolio.

Looking forward, our Upstream growth opportunities continue to deliver positive developments towards de-risked value creation:

In Brazil, the Bacalhau project is progressing, with the consortium working to have the FPSO sail away at the end of the year. The project remains on track for first oil in mid-2025 and to deliver around 40 thousand barrels per day net to Galp, once at plateau, driving a circa 30% growth in our production.

In Namibia, our efforts revealed exciting opportunities to support our future growth ambitions. We have just concluded the first exploration campaign, which considerably de- risked the Mopane area.

During the quarter, Galp successfully operated two wells where significant light oil columns were identified. In the meantime, we concluded our first well test, which revealed encouraging results.

The quality and size of the resources found, as well as the test results obtained so far, indicate that we may be in the presence of major commercial discoveries, reinforcing our view of Mopane's potential. And we see further upside. Therefore, the team focus will now be on planning the next exploration and appraisal activities to evaluate the wider Mopane complex.

Now, turning to the Industrial segment, our refining system demonstrated high availability during Q1, successfully capturing the supportive market conditions. The Midstream segment once again delivered a robust set of results, demonstrating our basket's resilience when faced with some softness on natural gas prices. All in all, operationally, Industrial & Midstream started the year delivering at or above our projections.

As anticipated, Commercial had a seasonally weaker quarter. The high-price environment and rising business pressure in Spain were partly balanced by our increasingly stable contribution from non-oil and low carbon activities.

And as for Renewables, lower irradiation and very low power prices in Iberia dragged down our performance. We remain committed to pursuing a disciplined execution of our

1Q24 Results

Results' Presentation Transcript

April 30, 2024

development portfolio, focusing only in Iberia and primarily feeding the power required for our clients and for self-consumption, such as in our electrolysers.

Overall, Group Ebitda in Q1 was close to 1 bn €. The implicit tax rate was back to levels closer to normal in spite of the continued pressure from extraordinary taxes in Iberia, which we continue to challenge.

On cash flow, OCF mirrored the Group's robust performance, reaching close to 600 million €.

We maintained a strong execution pace in our capex, balancing a more concentrated spending on our exploration campaign in Namibia and the ongoing progress in Bacalhau, with the construction works of our Low Carbon Industrial projects in Iberia.

All in all, the cash generation in the period enabled us to sustain a Net Debt to Ebitda ratio at 0.4x, thus maintaining highly resilient financial position.

In closing, this quarter stands testimony to our balanced strategy, seamlessly integrating a portfolio of dependable and profitable operations with a pipeline of promising future growth opportunities. We remain firm in our focus on returns and disciplined capital allocation, ensuring sustainable value creation for Galp.

Thank you for joining us as we navigate this exciting journey together!