GALP Energia SGPS SA

Latest Results (25.10.2025):

In the second quarter of 2025, GALP Energia SGPS SA delivered strong financial results, demonstrating robust operating performance across all business segments despite challenging macroeconomic and geopolitical conditions. The company's resilient cash generation enabled continued shareholder rewards and a solid financial foundation, leading to an upgrade in operating expectations for 2025.

Upstream Performance

GALP's Upstream segment recorded an RCA EBITDA of €403 million, with production increasing by 6% year-over-year despite a 20% decline in Brent oil prices. This growth was supported by high availability in the FPSO fleet and minimal maintenance disruptions.

Industrial & Midstream Growth

The Industrial & Midstream division achieved an RCA EBITDA of €320 million, a 42% increase year-over-year. Strong performance in natural gas and LNG supply and trading, particularly following the commencement of liftings from Venture Global LNG, contributed significantly to this growth.

Commercial Segment Expansion

GALP's Commercial segment reported an RCA EBITDA of €101 million, marking a 28% year-over-year increase. Market improvements in Spain and Africa, along with the expansion of Convenience & Energy Solutions, which accounted for 37% of the divisional operating contribution, were key drivers.

Financial Position and Cash Flow

The company maintained a solid financial position with net debt at €1.4 billion and an adjusted operating cash flow of €713 million. Cash flow from operations reached €627 million, supported by strong operating performance and effective working capital management.

Capital Expenditures and Investments

Capital expenditures for the quarter totaled €182 million, primarily directed towards the Bacalhau development in Brazil and the construction of advanced biofuels and green hydrogen facilities in Sines. These investments are aligned with GALP's strategy for sustainable growth.

Outlook for 2025

GALP has upgraded its financial guidance for 2025, projecting upstream production between 105–110 kboepd. The company expects Industrial & Midstream EBITDA to exceed €800 million, driven by increased LNG volumes and favorable natural gas prices.