Lisbon, Oct. 28, 2024 (Lusa) - Galp closed the first nine months of this year with a profit of €890 million, an increase of 24% on the same period in 2023, the oil company said in a statement to the Portuguese Securities Market Commission (CMVM) on Monday.
In the same period, the group recorded an EBITDA (earnings before tax, interest, depreciation and amortisation) of €2.609 billion, 8% less than in the same period last year.
According to the company, these results reflect a "robust operating performance in the period", namely in the upstream (exploration and production) and industrial & midstream (transport, storage and marketing) areas, "despite a less favourable refining environment" and now excluding any contribution from the Coral Sul FLNG project in Area 4 in Mozambique.
Considering only the third quarter of this year, Galp made a profit of €266 million, 27% more than in the same period in 2023.
Quoted in the statement, the oil company's government chairman, Filipe Silva, said that these figures show "Galp's operational dynamism", which recorded "another robust performance during this quarter, despite the less favourable environment for refining and commodity prices".
"Our assets safely navigated market volatility, reinforcing our commitment to operational excellence. This performance has left the team in a strong position to continue reducing risk and developing our low-carbon upstream projects while decarbonising our downstream portfolio," added Filipe Silva.
Up to September, Galp's net capex totalled 290 million euros, with the total investment of €792 million mostly directed to the upstream projects under development in Brazil, namely Bacalhau and Tupi & Iracema, and the exploration campaign in Namibia, supported by the proceeds from the divestment completed in the period (sale of upstream assets in Angola).
Investment in the industrial & midstream segment was mainly allocated to low-carbon projects in the Sines industrial complex, namely the initial execution works for the HVO/SAF unit (production of renewable diesel and sustainable aviation fuel) and the 100 Megawatt (MW) electrolysis plant for the production of green hydrogen, as well as investments related to the maintenance of refining and logistics assets.
On 30 September, Galp's net debt stood at €1.471 billion, up 21% from €1.211 billion in the same period last year.
The figures released today also show that Galp's refining margin (the difference between the cost of acquiring oil and the selling price of refined products, such as petrol and diesel) fell by 33% in the first nine months of this year, to $8.1 per barrel, compared to $12.2 in the same period last year.
Working interest production (gross production of raw materials, including all costs arising from operations) fell by 10% to 109,000 barrels per day. In comparison, total sales of oil products remained practically stable (-1%) compared to the same period last year, at 5.3 million tonnes.
Natural gas and electricity sales totalled 12.0 terawatt hours (TWh) and 5.1 TWh, respectively, representing increases of 16% and 88%, respectively.
Up to September, EBITDA from upstream activity stabilised at €1.641 billion, with lower production in Brazil being offset by a slight increase in oil realisations and the derecognition of assets in Mozambique.
In the industrial and midstream area, EBITDA was €695 million, down by 20% year-on-year due to the less favourable refining environment.
Galp recorded an EBITDA of €38 million in the renewables segment, a 65% reduction from the same period last year. This reflects the evolution of energy prices, with energy production increasing by 3% compared to the same period last year.
In the statement, Galp also said that on October 9, it concluded a share buyback programme worth €350 million, intending to reduce the company's share capital.
PD/ADB // ADB.
Lusa
