Galp's Second-Quarter Profit Surges 16%, Exceeds Expectations

 

On Monday, Portugal's Galp Energia announced a 16% increase in its second-quarter adjusted net profit, surpassing expectations due to higher oil prices and reduced production costs, despite stable refining margins and lower overall production.

The company reported an adjusted net profit of 299 million euros ($325.34 million), exceeding the 236 million euros forecasted by 18 analysts polled by the company.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased by 7% to 849 million euros, still above the consensus estimate of 821 million euros.

Chief Executive Filipe Silva stated that Galp "continued to deliver a robust performance during the second quarter of 2024, despite the still volatile commodity price environment."

Galp's share of oil and gas production from upstream projects in Brazil decreased by 5% year-on-year to 106,000 barrels of oil equivalent per day (boepd).

After agreeing in May to sell its 10% stake in a natural gas project in Mozambique, Galp did not report any production from the country in the second quarter, down from 5,000 barrels a year earlier.

However, Brent oil prices rose by 9% to an average of $85 per barrel during the quarter, up from $78.1 the previous year.

Galp reported that its refining margin remained steady at $7.7 per barrel in the second quarter, the same as the previous year, but 36% lower than the $12 per barrel in the first quarter of this year.

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.