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Galp's profits drop 13% in the first quarter, and estimates fail - Energy

Galp’s profits drop 13% in the first quarter, and estimates fail – Energy

Galp closed the first quarter of this year with a profit of 26 million euros, down 13% compared to the net result of 29 million obtained in the same period in 2020.

The result was lower than the estimates of analysts polled by Bloomberg, who indicated a profit of 48.3 million euros.

In a statement sent to CMVM, the oil company reported that the RCA net score, which excludes “ equity ” effects and one-off events, was 26 million, while the IFRS net score improved from losses of 257 million in the first quarter of the year. The past to a positive result of 161 million in the same period this year.

Between January and March of this year, the accounts of the company led by Andy Brown mainly benefited from the exploration and production sector, whose EBITDA grew by 53% year-on-year to 438 million euros.

The increase is attributed to the increase in oil prices during this period, which helped depreciate the dollar against the euro and decrease production by 5%, which was affected by “operational and logistical restrictions abroad.”

In the refining and distribution sector, EBITDA reached -6 million, down 96% YoY, ‘affected by the negative contribution from refining, reflecting the unfavorable context of the refining margins, and the lower contribution from Midstream, after the restrictions related to With the supply of natural gas, the negative effects related to the delay in formulas for pricing petroleum products, and the increase in the costs of re-converting natural gas to gas in Portugal, “as explained by Galp.

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In the commercial sector, there was a decrease of 23% to 69 million euros, due to the decrease in sales of petroleum products and natural gas as a result of containment measures.

Between January and March, Galp’s adjusted operating cash flow increased by 46% to 445 million euros and FCF generation reached 175 million, or 518 million, including 343 million in revenue from the sale of its stake in GGND (Galp Gás Natural Distribuição, SA) , Which was completed during the quarter.

In this period, the company’s oil investments grew by 23% to 178 million euros, while net debt increased by 4% to 1552 million euros.