Galp Energia SGPS SA Annual Report 2014

188 Pages·2015·8.77 MB·English

Energy on the move
Annual Report and Accounts 2014

Energy on the move
Annual Report and Accounts 2014
www.galpenergia.com
This translation of the Portuguese document was made only for the convenience of non-Portuguese
speaking interested parties. For all intents and purposes, the Portuguese version shall prevail.
ENERGY ON THE MOVE
To evolve is to become adapted to the challenges of our surroundings,
it is to adjust to new realities and to find ways to overcome our goals.
It is for this reason that we can today think of Galp Energia as a living
organism, where concepts such as resilience, adaptation, adjustment,
involvement and joint construction allow for continuous evolution.
Exploration & Production Refining & Marketing Gas & Power Galp Energia
+ + =
Annual Report and Accounts 2014
01 Galp Energia 8
1.1 Galp Energia in the world 10
1.2 Statement of the Board of Directors 12
1.3 Strategy 16
1.4 Main indicators 18
02 Activities 20
2.1 Market environment 21
2.2 Exploration & Production 25
2.3 Refining & Marketing 37
2.4 Gas & Power 41
03 Financial performance 44
3.1 Executive summary 45
3.2 Results analysis 45
3.3 Capital expenditure 47
3.4 Cash flow 47
3.5 Financial debt 48
04 Risk management 49
4.1 Risk management model 50
4.2 Internal control system 51
4.3 Main risks 52
05 Commitment to stakeholders 59
5.1 Corporate governance 60
5.2 Human capital 67
5.3 Research and technology 69
5.4 Health, safety and environment 70
5.5 Quality 72
5.6 Local community development 73
06 Appendices 74
6.1 Proposed allocation of net profit 75
6.2 Additional information 75
6.3 Consolidated financial statements 78
6.4 Reports and opinions 170
6.5 Glossary and acronyms 177
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01
Galp Energia Activities Financial performance Risk management Commitment to stakeholders Appendices
Galp Energia: energy on the move
OUR VISION AND PURPOSE
• To be an integrated energy player recognised for its exploration
Who we are
and production activities, creating sustainable value for its
shareholders.
OUR STRATEGY
An integrated energy player focused
on exploration and production, with • To strengthen our exploration and production activities,
a portfolio of assets that will lead complemented by an efficient and competitive downstream
to a unique growth within the industry. and gas business and supported by a solid financial capacity and
sustainable practices.
Exploration and production activities
OUR STRATEGIC DRIVERS
anchored in three core countries:
Brazil, Angola and Mozambique.
• Efficient business development.
• Financial discipline and value creation.
Significant presence in the downstream • Organisational efficiency.
oil and gas businesses in the • Differentiated human capital development.
Iberian Peninsula and in Africa. • Commitment to sustainability.
OUR COMPETITIVE ADVANTAGES
Iberian presence in the distribution
and marketing of natural gas and
• Successful and enduring partnerships with leading companies
electricity, with a growing LNG in the industry.
structured trading activity. • Integrated skills and know-how of the business.
• Financial capacity and flexible organisation.
• Participation in some of the most promising projects worldwide.
14 638
mmboe
countries where
Galp Energia operates 2P reserves
6,855 1,672
mmboe

employees 2C contingent resources
373 330
€ m kbopd

net profit RCA refining capacity
7.5 1,449
bcm
sales of natural gas service stations
All figures throughout the report are for 2014 or end of 2014, as the case may be, and except otherwise indicated.
To learn more, visit http://www.galpenergia.com
GALP ENERGIA ANNUAL REPORT AND ACCOUNTS 2014 7
01
Manuel Aguiar/ Galp Energia Galp Energia Activities Financial performance Risk management Commitment to stakeholders Appendices
©

AG aGlpa lEpn Eenrgeiragia
0011
1.1 A Galp Energia no mundo
1.1 Galp Energia in the world
1.2 Mensagem do Conselho de Administração
1.2 Statement of the Board of Directors
1.3 Estratégia
1.4 Princip1a.i3s inSdtricaatdegoyres
1.4 Main indicators
8 GALP ENERGIA ANNUAL REPORT AND ACCOUNTS 2014
01
Galp Energia Activities Financial performance Risk management Commitment to stakeholders Appendices
EXPLORATION & PRODUCTION
Galp Energia is currently focused on the development
of its exploration and production projects, particularly
following the world-class discoveries in the pre-salt
of the Santos basin in Brazil and in the Rovuma basin
c.50
in Mozambique. The Exploration & Production (E&P)
portfolio business, the main driver behind the Company’s
projects growth, anchors its activities on both of these countries
as well as on Angola, although its diversified portfolio
extends across eight countries with around 50 projects.
Galp Energia is expected to deliver production growth
which is unparalleled in the industry, based on
discoveries already made.
REFINING & MARKETING
Galp Energia is an operator of reference in the Iberian
Peninsula, integrating its refining, distribution
and marketing of oil products activity in this
region. The Company has an integrated refining
system comprising two refineries in Portugal, with
9.3
mton
a processing capacity totalling 330 thousand barrels
sales
of oil per day (kbopd), together with a vast oil product
to direct clients
distribution network in the Iberian Peninsula, including
approximately 1,300 service stations. Although the
Refining & Marketing (R&M) business is centred on the
Iberian Peninsula, the Company continues to expand its
sales of oil products in selected markets in Africa.
GAS & POWER
Through its Gas & Power (G&P) business, Galp Energia
distributes and supplies natural gas in the Iberian
Peninsula as well as in the international market, where
it has been consolidating its trading of liquefied natural
gas (LNG). In the Iberian Peninsula, where it is the
second-largest supplier of natural gas, the Company
7.5
bcm has also been consolidating its power business as an
sales integrated operator. In fact, Galp Energia is now the only
of natural gas operator with a triple offer on the market, combining
the supply of oil products, natural gas and electricity.
GALP ENERGIA ANNUAL REPORT AND ACCOUNTS 2014 9
01
Galp Energia Activities Financial performance Risk management Commitment to stakeholders Appendices
1.1 Galp Energia in the world
IBERIAN PENINSULA
7
E&P projects
12.9 mton
sales of refined products
4 bcm
sales of natural gas
MOROCCO
1 E&P project.
OTHER AFRICAN COUNTRIES
Marketing of oil products
in Cape Verde, Gambia,
Guinea-Bissau, Malawi
and Swaziland, through
BRAZIL a network of 68 service
stations.
75%
c.
ANGOLA
reserves and contingent
Present in
resources1 4
29 E&P projects.
E&P projects
Working interest
production Working interest production
of c.20 kboepd. of c.11 kbopd in 2014.
URUGUAY Annual oil products sales
of 205 kton.
1 E&P project.
¹ Considers 2P reserves and 2C contingent resources.
10 GALP ENERGIA ANNUAL REPORT AND ACCOUNTS 2014