Galp Energia Sees Profits Surge on Strong Oil Output and Prices
Portuguese energy company Galp Energia posted a significant increase in second-quarter adjusted net profit, driven by higher oil output in Brazil and stronger crude prices. The company's adjusted net income rose to €540 million ($616 million) in the April-June period, exceeding the €494 million consensus provided by Galp.
The results were boosted by the launch and ramping up of the floating production, storage and offloading vessel at the Bacalhau field, as well as higher average Brent prices. Galp's share of oil and gas production from its projects in Brazil rose 12% year-on-year to 127,000 barrels per day.
The company's refining unit was also a significant contributor, with EBITDA rising 43% to €458 million in the quarter as refining margins jumped to $16.8 per barrel from $6.1 a year ago. Galp raised its full-year EBITDA guidance to around €4 billion from over €2.6 billion previously.
The company's board of directors will propose a 10% increase in the 2026 dividend to €0.70 per share at next year's annual meeting. Co-CEO Maria Joao Carioca stated that 'the results reflected the quality of Galp's assets and its teams' ability to execute even in a highly volatile environment.'