Lisbon, July 27, 2026 (Lusa) - Profits at Portuguese energy company Galp rose by 44% year-on-year to €812 million in the first half of the year, driven by increased oil production in Brazil and higher Brent crude prices, the company announced on Monday.

In the second quarter of the year, Galp's adjusted net profit rose by 45% to €540 million.

In a statement sent to the Portuguese Securities Market Commission (CMVM), the oil company said that «these results were underpinned by a 17% increase in oil and natural gas production compared with the same half of the previous year, driven by the start of operations and ramp-up of the Bacalhau field in Brazil, and by a 28% rise in the average price of Brent to $92.3 per barrel».

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 52% between April and June and by 47% for the first half of the year, reaching €1.27 billion and €2.22 billion respectively, with «more than 90% generated outside Portugal».

«These results reflect the quality of our assets and the execution capabilities of our teams, even in a highly volatile environment. We maintain strong financial discipline whilst continuing to invest in opportunities that strengthen Galp's competitiveness and growth potential,» said Galp's co-CEO, Maria João Carioca, as quoted in the press release.

EBITDA from ‘Upstream' (exploration, development and production of oil and natural gas), traditionally the main driver of Galp's results, rose by more than 70% both on a half-yearly and quarterly basis, accounting for 62.5% of total EBITDA up to 30 June and more than half of second-quarter EBITDA.

The second major contributor to the results came from ‘Industrial and Midstream' (I&M), which includes procurement, trading and refining activities.

Galp highlights that the latter «benefited from historically high spreads» in international markets between the prices of raw materials (such as Brent) and those of refined products (such as diesel, petrol or jet fuel), with the refining margin standing at $15.8 per barrel in the first half of the year.

Year-on-year, I&M's EBITDA rose by 22% in the half-year to €656 million, and by 43% in the quarter to €458 million, «largely due to an increase in the value of exports, whose contribution to EBITDA more than doubled».

Trading in natural gas and petroleum products also contributed to I&M's strong results, both in the second quarter and over the half-year, which already included the full contribution from the LNG cargoes contracted from Venture Global.

Galp also notes that the results of the commercial division «benefited from a recovery in sales of natural gas and electricity, and from the B2B segment in the Iberian Peninsula», with its EBITDA rising by 21% to €197 million in the first six months and by 12% quarter-on-quarter, to €113 million.

Meanwhile, the renewables sector recorded increases across all operational indicators, «largely due to the acquisition in April of a portfolio of 350 megawatts (MW) of wind assets in Spain, the commissioning of 230 MW of solar capacity in June, and the addition of 55 MW of battery storage capacity».

Galp notes, however, that the increase in electricity generation was reflected selectively in results «due to falling prices, particularly in the first quarter, when heavy rainfall caused hydroelectric generation to surge».

Consequently, although EBITDA from renewables increased 20% year-on-year to €11 million in the quarter, it represented around half the figure for the same period in 2025 over the half-year.

In accordance with International Financial Reporting Standards (IFRS), Galp's net profit fell by 4% year-on-year for the half-year, to €651 million, «continuing to reflect the high volatility in the markets and the impacts associated with changes in the valuation of risk hedging instruments».

By June, Galp had invested €696 million, an increase of 44%, with the acquisition of wind power assets in Spain for €318 million as a key highlight.

During the half-year, over 70% of investment was in the Iberian Peninsula, including €109 million at the Sines Refinery, primarily for the development of low-carbon projects.

«Between renewables, the transformation of the Sines Refinery and other low-carbon projects, 63% of investment in the half-year, i.e. €442 million, was allocated to energy transition projects. The remainder was invested primarily in the development of the Bacalhau project and the drilling of development wells in the Tupi field, both located in the pre-salt layer of the Santos Basin in Brazil,» it said.

Net capital expenditure (net capex) for the half-year totalled €799 million, compared with a net inflow of capital in the same period last year.

PD // SB

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