GALP Energia SGPS SA

Latest Results (18.12.2024):

Strong Operating Performance

In the third quarter of 2024, GALP Energia SGPS SA reported a robust operating performance, with RCA Ebitda reaching €820 million. This was primarily driven by resilient production levels and a competitive cost base in the Brazilian portfolio, which helped offset lower oil prices. The company's upstream segment contributed €541 million to the RCA Ebitda, highlighting the strength of its operations despite market challenges.

Industrial and Midstream Contributions

The Industrial & Midstream segment of GALP Energia SGPS SA delivered an RCA Ebitda of €165 million in the third quarter of 2024. This performance was supported by high utilization levels in industrial operations, despite a softer refining margin environment. The midstream activities, particularly in supply and trading of oil, natural gas, and power, continued to show robust momentum, contributing significantly to the company's overall results.

Commercial and Renewables Segments

GALP Energia SGPS SA's Commercial segment achieved an RCA Ebitda of €92 million in the third quarter of 2024, bolstered by strong retail activities, including convenience and customer solutions, as well as the enterprise (B2B) segment in Iberia. The Renewables segment recorded an RCA Ebitda of €24 million, with higher generation from increased installed capacity partially mitigating lower electricity market prices in Iberia compared to the previous year.

Financial Position and Investments

During the third quarter of 2024, GALP Energia SGPS SA's adjusted operating cash flow was €540 million, reflecting its robust business performance. Cash flow from operations, including working capital changes, reached €475 million. The company invested €248 million, primarily in upstream projects like Bacalhau, as well as in industrial activities and renewables developments. Net debt increased by €313 million to €1.5 billion, influenced by dividend payments and share buyback activities.

Outlook and Guidance

GALP Energia SGPS SA's strong operating performance and financial position support its key financial guidance for 2024. The company expects Group Ebitda and operating cash flow to exceed €3.1 billion and €2.0 billion, respectively, despite a volatile macroeconomic context. This outlook underscores GALP's commitment to operational excellence and strategic investments in low carbon intensive upstream projects and the decarbonization of its downstream portfolio.