Galp profits up 23% for H1 to €624 million

 In Companies, Financial results, Galp, News

Portuguese oil and gas giant Galp posted a profit of €624 million in the first half of 2024, up 23% on its net RCA (Replacement Cost Adjusted) result in H1, 2023.

Production, however, fell in the first six months of the year because of the sale of assets in Mozambique and stoppages in Brazil, but the company benefitted from higher Brent petroleum prices and its business activity at its refinery in Sines increased.

At the same time, the company’s debt shrank and its investments grew by two digits. In Q2 Galp’s RCA profit was up 16% like-for-like to €299 million.

“Our teams and asset base continued to deliver a robust performance during the second quarter of 2024, despite the still volatile raw material price environment,” says Filipe Silva, CEO of Galp, quoted in a statement.

“During this period, Galp completed the sale of Angolan upstream assets and announced the divestment of Area 4 in Mozambique. These actions allow us to crystallise value, reduce risk and focus on projects with higher returns in line with Galp’s strategy”, adds the manager.

In the upstream segment, Galp’s production for the half fell 10%. This decrease was justified by the divestment in Mozambique, but also by a 6% reduction in production in Brazil, in light of “more planned maintenance activities and an unplanned shutdown in the second quarter.”

In the midstream, the amount of raw material processed at the Sines refinery increased by 12% in the first half of the year, due to the higher use of all units, the company explains. However, Galp’s refining margin shrank 10% in the half-year, to US$9.8 per barrel of oil.

In the commercial segment, Galp admits to a 2% decrease in sales of petroleum products, reflecting a “slightly more pressured business environment, namely in some B2B segments in Portugal”. However, there are increases of 15% in natural gas sales and 89% in electricity sales.