The executive co-presidents of Galp, Maria João Carioca and João Marques da Silva, emphasized in a report to the Comissão do Mercado de Valores Mobiliários (CMVM) that the company’s robust operational performance continued into the third quarter, bolstering a strong financial position which is encouraging given the current macroeconomic sentiment.
Half of the profits from July to September originated from oil and gas production in Brazil, despite the impact of declining crude prices, which was more than compensated by the international recovery of refining margins, driven by supply and commercial activities and refinery availability, noted Galp.
The earnings before interest, taxes, depreciation, and amortization (Ebitda) up to September fell 7% to 2.42 billion euros, while the third-quarter figure was 911 million euros, a rise of 11%, with nearly 80% stemming from international activities.
Total investment up to September was 716 million euros, although the net balance between invested amounts and income from asset disposals, notably in Angola and Mozambique, was positive at 93 million euros.
In the third quarter alone, Galp invested 273 million euros, two-thirds of which was allocated to the construction in Sines of green hydrogen and advanced low-carbon biofuel production units, network store modernization, the expansion of the electric charging network, and photovoltaic production capacity.
The remaining investment was directed to Brazil, primarily in the Bacalhau project, which commenced oil production in October.
The oil company noted that operational performance was crucial for results, although the strong performance of oil and gas exploration and production activities (‘upstream’) in the third quarter, shown by a 2% production increase compared to the same period in 2024, was affected by the drop in international oil prices, which fell 14% to 464 million euros.
Meanwhile, industrial and ‘midstream’ activities (transport, storage, and refining) achieved an Ebitda of 315 million euros, a 91% increase over the same quarter of the previous year, more than compensating for the downstream results decline.
The refining sector benefited from the recovery of international margins, leading to a 78% increase in export results from Sines compared to the same quarter last year.
Moreover, transacted natural gas volumes increased 42%, driven by the commencement of LNG deliveries from Venture Global LNG in the United States and the expansion of natural gas marketing in the Brazilian market.
The commercial activity noted a 28% rise in third-quarter operating results, amounting to 119 million euros, with improvements across nearly all segments, supported by the recovery of the Spanish market and the expansion of the electric charging network to more than 9,000 points in the Iberian Peninsula (+64%).
In the renewable energy sector, Ebitda dropped 35% in the third quarter, to 16 million euros, due to the pressured solar energy price context.
The operational performance resulted in solid cash flow generation, enabling a reduction in net debt to 1.2 billion euros by the end of the period, emphasized Galp.
The co-presidents stressed that Galp is well-positioned to exceed its current forecast for 2025, both for Ebitda and operational cash flow (OCF), which reached 753 million euros in the third quarter, a 39% increase compared to the same period in 2024.
[Updated at 08:04]
