GALP Energia SGPS SA

Latest Results (29.08.2026):

GALP Energia SGPS SA — second quarter 2026 (reporting first half 2026): strong operational delivery translated into robust results and upgraded full‑year guidance. Q2 RCA EBITDA was €1,272m (up 52% YoY) and RCA net income €540m; H1 RCA EBITDA reached €2,216m and RCA net income €812m. Adjusted operating cash flow was €1,076m in Q2 (€1,789m H1), free cash flow €544m in Q2 (€591m H1), and net debt stood at €1.38bn (net debt/RCA EBITDA 0.40x). Management upgraded FY‑2026 RCA EBITDA guidance to around €4.0bn, and the Board will propose a 10% dividend increase to €0.70/share (first interim €0.35 payable Aug 2026).

Operational performance

Q2 working interest production averaged 127 kboepd (up 12% YoY) as Bacalhau FPSO continued ramp‑up; refinery throughput remained high (22.6 mboe in Q2) with strong Sines availability; renewable capacity rose to 2.3 GW after a 351 MW wind acquisition and new solar and storage additions.

Earnings and margins (Q2 / H1 2026)

Q2 RCA EBITDA €1,272m and RCA EBIT €1,055m; H1 RCA EBITDA €2,216m and RCA EBIT €1,828m. Upstream RCA EBITDA €700m in Q2 (€1,384m H1) benefitting from higher oil prices; Industrial & Midstream RCA EBITDA €458m in Q2 (€656m H1) helped by strong refining cracks and trading; Commercial RCA EBITDA €113m in Q2 (€197m H1); Renewables RCA EBITDA modest but growing after acquisition (€11m Q2, €9m H1 pro‑forma higher).

Cash generation and balance sheet

Adjusted OCF €1,076m in Q2 (€1,789m H1). Q2 free cash flow €544m after €547m net capex (including €318m wind portfolio purchase). Net debt ~€1.38bn at 30 June 2026 and net debt/RCA EBITDA improved to 0.40x; available liquidity includes €1.99bn cash and ~€2.24bn undrawn facilities.

Capital allocation & shareholder returns

Q2 included accelerated buybacks (€179m in Q2; €226m H1) and payment of the final 2025 dividend tranche (€240m). Board to propose a 10% DPS increase to €0.70 for 2026 with an interim €0.35 in August, reflecting confidence in cash generation and outlook.

Guidance update (FY‑2026)

Management raised macro assumptions and guidance: FY RCA EBITDA now c.€4.0bn (previously >€2.6bn); Upstream >€2.3bn; Industrial & Midstream >€1.1bn; Renewables c.€80m; OCF around €3bn; organic capex ~€1bn. Sensitivities provided (e.g., Brent +$5/bbl = +€90m EBITDA).

Key risks and near‑term catalysts

Catalysts: Bacalhau further ramp‑up, Mopane exploration campaign in Namibia (Q4), progress on Sines low‑carbon projects and renewables portfolio rebalancing/partnerships. Risks: commodity price volatility (Middle East tensions noted), logistics/demurrage costs and Iberian power/solar price weakness.

Notable one‑offs and accounting items

Q2 included inventory effects (€146m benefiting IFRS EBITDA) and special items across the half (net special items noted in the report), plus consolidation impact from the April wind portfolio (≈€79m net debt added on consolidation and €318m acquisition cost reflected in capex).