Galp profits soar 44% in 1H

Galp’s profits soared 44% in the first half of the year, reaching €812 million, in a first half of the year marked by soaring oil prices due to the conflict in the Middle East and the closure of the Strait of Hormuz.

“Galp delivered another quarter of strong operational and financial performance, leveraging the quality of our assets and people to capture market conditions. The robust cash generation during the first half of the year reinforces our confidence in the outlook for 2026, reflected in our updated guidance,” write Galp’s co-CEOs, Maria João Carioca and João Marques da Silva, quoted in a statement annexed to the results released on Monday.

Overall, Galp’s revenues totalled €11,833 million in the first six months of the year, 20% more than in the same period last year, with the company also recording a 14% increase in the cost of goods produced. The company’s debt remained virtually unchanged in the second quarter at €1.38Bn.

Specifically, the company now expects to reach €4Bn in EBITDA (earnings before interest, taxes, depreciation, and amortisation) this year, a significant increase compared to the previous forecast, which pointed to €2.6Bn as the minimum limit for EBITDA in 2026. The oil production estimate has also been updated, from a range of 125,000 to 130,000 barrels or equivalent per day to the top of that range, i.e., around 130,000.

Analysing the first half of the year’s accounts, in the Upstream segment, Galp increased oil production by 19% and gas production by 8% through June, closing the period with a strong increase in EBITDA for this segment of 76%, totaling €1,384 million. The company highlights the increased production at the Bacalhau field in Brazil during the second quarter.

In the Industrial and Midstream segments, which includes refining activity, Galp recorded a slight 3% decrease in raw material processing over the first half of the year, attributed to the storms that hit Portugal at the beginning of the year. However, the refining margin soared from US$5.9 to US$15.8 per barrel of oil or equivalent, during a period when the price of Brent crude approached US$120 a barrel at the end of April. EBITDA for this segment increased by 22%, to €656 million.

Regarding the commercial segment, Galp recorded a slight decrease of 2% in the sale of petroleum products. Specifically in relation to the second quarter, the company highlights a drop in demand in Portugal in the consumer and business segments, which more than offset the growth in demand from consumers on the other side of the border. Natural gas sales rose 5% in the first half of the year, and electricity sales increased by 18%. This segment generated 21% more EBITDA than in the previous semester, at €197 million.

In renewables, installed capacity increased by 29% to 2.3 GW — this before accounting for the acquisition of 15 wind farms in Spain, also announced this Monday, which raised this indicator to 2.7 GW. The company sold 15% more renewable energy in the six months to June, but EBITDA fell 52% to €9 million, mainly due to lower solar energy prices in the first quarter.

Source: Galp