Galp posts profits of €718M to September

Galp Energy closed the third quarter of 2023 with a profit of €210 million, up 12% like-for-like on 2022, but below the €258 million posted in Q2 of 2023.

The accumulated results for the first nine months of the year stood at €718 million, up 18% like-for-like states Galp in a communiqué sent to the Portuguese securities and stock market commission CMVM on Monday.
The company’s RCA* (*Resource Consumption Accounting) Ebitda stood at €1.057Bn with upstream* Ebitda at €594 million, down YoY reflecting the de-recognition of Angolan upstream assets disposal and a less favourable oil and gas prices environment.
(*Upstream refers to exploration and production of crude oil and natural gas, midstream is the transportation and storage of crude oil and natural gas, downstream refers to the conversion of crude oil and natural gas into thousands of finished products).
On a comparable basis, excluding Angolan assets, current portfolio working interest (WI) production was up 8% YoY, supported by the ramp-up of Coral Sul FLNG in Mozambique and stable production in Brazil.
As to Renewables & New Businesses, RCA Ebitda was €43 million, on a seasonally high generation quarter, with the increased generation from added operating capacity more than offsetting the lower market price environment YoY.
Industrial & Midstream RCA Ebitda was €342 million , reflecting a strong performance of the industrial activities, with the system’s high utilisation capturing the international cracks environment. The contribution from the midstream businesses continued robust, benefiting from improved supply and trading activities across oil, gas and power.
Commercial RCA Ebitda was €111 million, up YoY, following improved performance on the Iberian retail and convenience, and despite the pressured environment on some B2B segments. Group RCA Ebitda was €741 million, mostly following RCA Ebitda.
For the first 9 months of 2023 Galp’s RCA Ebitda was €2,838 million, while OCF was €1,781 million, reflecting a robust operating performance across all business units during the period. Net Capex totalled €476 million, mostly directed towards Upstream’s developments, and considering €209 million of inflows from the Angolan upstream assets’ disposal. FCF amounted to €1,351 million, with net debt down 22% compared to the end of last year, considering dividends to non-controlling interests of €89 million, dividends paid to shareholders of €422 million and €308 million invested through the share buybacks.
Galp CEO Filipe Silva said: “This was a strong quarter for Galp, with good operational momentum led by the performance in our Brazilian assets. Our robust financial performance was reflected across all business units in a context of disciplined strategic execution. Final investment decisions were made for a  100 MW electrolyser, set to be one of Europe’s largest, and an advanced biofuels unit. These investments lay the foundation  to our future as a provider of sustainable energy solutions.”