Galp goes from profit to €45 million loss

Portugal’s national petroleum and gas company Galp has seen its profits eroded to post a €45 million loss to September.

In 2019 it enjoyed profits of €403 million but now has seen all that wiped out in the first nine months of the year because of falling demand over the Coronavirus pandemic.
Galp Energia, which saw the value of stock tumble 2.53% on the Lisbon stock market Euronext, saw a 34% fall in EBITDA over the nine months, to €792 million.
The results are also down because of low oil prices for the period despite upping production.
Revenues for Galp fell 31% to €8.55Bn. Total sales of petrol products were in the region of 4.5 megatons, a fall of 29% like-for-like on 2019, reflected by reduced demand over the lockdown restrictions between March and May.
The company’s production for the period reached €132,5 thousand barrels per day, a growth of 15.8% like for like.
This increase was “supported by the ongoing development of projects Tupi, Iracema, Berbigão/Sururu and Atapu as well as a larger contribution in the project Kaombo, in Angola states the company’s financial report.
In addition to getting less revenue from lower fuel prices, the exchange market also had an impact on Galp Energy accounts with “the financial results down by €163 million as a result impacted by exchange rate differences of €-112 million as a result of the depreciation of the Brazilian real against the US dollar.
A negative market-to-market variation of €-102 million also made a dent in the results, mainly derived from risk cover in the price of natural gas,” states the company led by Carlos Gomes da Silva.
Given these results, Galp Energia shares fell on the Lisbon stock market by 2.75% to €7.92 per share. Since January, the company has lost 46.85% of its value.