Monday, October 24, 2016

Ten years and ten billion euros after the Company “is completely different” – the Public.en

When the Company came to the stock market in 2006, "there were some projects in Brazil in which some believed and others not". In fact, these projects, or the possibility of these projects to give to the crooked, were in the list of 20 risks recognized by the company in the prospectus presented to the investors at the time of the operation of the dispersion of capital.

Today, it has been proved that these are the "active fantastic," and thanks to them the Company "is a company completely different", stressed the executive chairman of oil company, Carlos Gomes da Silva, in a ceremony intended to mark the ten years of the company on the stock exchange. Over the decade, the Company made a "route merit", spreading "around the world", but with Brazil (where they were however confirmed, in 2007, the gigantic oil reserves of pre-salt in the field Tupi, today Squid) as a strategic priority, as highlighted by the the executive president of Galp in the presentation this Monday on the Euronext Lisbon.

After you have moved in the last year the barrier of 50 thousand barrels per day, the Company is convinced that in the next may be to achieve the goal of 100 thousand barrels per day (this year the company already has six production facilities in ultra deep water brazilian, and other already scheduled to start operation). In the prospectus ten years ago, all the "testing" of exploration and production for oil was "in two and a half pages," since the bulk of the activity was the refining and marketing of fuels, today "it would be contrary to", such was the reconfiguration of the business.

Ten years and ten billion euros invested after, the Company went from a company with a result before interest, taxes, depreciation and amortization of 900 million, almost twice as much (about 1600 million).

In the input operation at the exchange, was fixed a reference price of 5,81 euros (which came to be considered too high by some analysts, as the company’s president made a point of noting), and today the title round the 12,8 euro (closing value of Friday), or over 120%. Throughout this decade of capital market, the Company has never traded below 5,81 euros (though it has been there close in 2008, the year of the financial and economic crisis, in which the oil was down by 60%), but also never repeated the feat achieved at the end of 2007, when the confirmation of reserves in the Lula field, has boosted the price above 19 euros.

The share price was affected by the fall in the price of oil starting in the Summer of 2014, similar to what happened with the titles of the other companies in the sector. But, even so, the Company has "an appreciation of the extraordinary compared with the sector" and "the advantage of being an integrated operator [that is in the exploration and production, but also in refining and marketing]", which guarantees the "resilience" needed to overcome the negative cycles, noted Gomes da Silva.

According to the data presented by Galp on Monday, the company is among the leading sector, one that presented the highest return for the investors (between the valuation of the shares plus dividends accrued). A return of 190%, which compares with around 50% of Shell and Total, for example. Only in dividends have been distributed over the years about 3500 million.

Remembering that two-thirds of the investors of the Company are in the United States and Canada, Carlos Gomes da Silva stressed that the manner in which the company is renowned out there is much larger than their share of the market, and has represented value for shareholders". Gomes da Silva highlighted the success of the oil dispute with investors with the giants of the sector, a fact that is not unaware of the potential growth of the company in Brazil (Galp has as a goal to achieve in the next year to an average daily production of 100 thousand barrels, thanks mainly to projects in ultra deep water in Brazil), which "continues to be one of the places most extraordinary in terms of asset quality".

The manager has ensured, therefore, that the company will be available to analyze assets that Petrobras may sell in the course of its restructuring process – even if that means to invest without being in the company of this that has been, to date, its main strategic ally. That does not mean any aloofness; on the contrary, the companies have recently signed an agreement to "anchor and formalize that partnership is a fact" and "develop new opportunities within and outside of Brazil", he noted, on the sidelines of the event.


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