Galp Sees 75 Percent Drop in Quarterly Profit

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Galp Sees 75 Percent Drop in Quarterly Profit

Lisbon-based Galp Energia SGPS S.A. has reported a replacement cost-adjusted (RCA) net income of EUR 71 million ($74.1 million) for the fourth quarter of 2024, 75 percent below the fourth quarter of 2023. Full-year RCA net profit was EUR 961 million ($1 billion), 4 percent below the corresponding 2023 figure. However, the company’s co-CEOs Maria […]

Full-year RCA net profit was EUR 961 million ($1 billion), 4 percent below the corresponding 2023 figure.

However, the company’s co-CEOs Maria João Carioca and João Diogo Marques da Silva said it was a strong quarter “in a year of consistent delivery, at or above headline guidance across all business units”.

Galp posted RCA earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR 3.3 billion ($3.4 billion) for 2024.

It ended the year with EUR 1.2 billion ($1.26 billion) in net debt, down compared to year-end 2023.

“These results not only depict 2024 as a year of strong execution for Galp but also lay the foundations for future growth and value creation. In 2025 and 2026 we will continue to execute our key growth projects, the hallmark of Galp’s portfolio, combining a disciplined approach towards a low capital intensity plan”, the co-CEOs said.

Galp said that its investments during the fourth quarter reached EUR 500 million ($522.3 million), mainly channeled toward the execution of upstream projects, such as the Namibia appraisal campaign and Bacalhau. The company also said it continued pursuing industrial low-carbon projects.

During the quarter under review, Galp reported a year-on-year drop in production of 110,000 barrels of oil equivalent per day (boepd). The drop reflected the disposal of the 10 percent stake in Area 4 in Mozambique.

However, Galp said its Industrial and Midstream sectors performed better in the fourth quarter, with raw materials processed at the Sines refinery reaching 22 million boe, substantially higher year-on-year. Supply and trading volumes of natural gas and liquefied natural gas (LNG) reached 11.8 terawatt hours (TWh), higher year-on-year, reflecting increased commercial demand, higher flexibility, and gas sourcing opportunities in Brazil, the company said.

For the full year, the company said it processed 91 million boe of raw materials, a record high, reflecting the strong availability and utilization of the units. Supply and trading volumes of natural gas and LNG reached 46.6 TWh, stable year-on-year.

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