The company closed the first quarter with a net profit of 26 million euros, below the expected by analysts consulted by Bloomberg.
Galp closed the first quarter of this year with profits of 26 million euros, a drop of 13% compared to the net result of 29 million obtained in the same period of 2020.
The result falls short of analysts’ estimates consulted by Bloomberg, which pointed to profits of 48.3 million euros.
In a statement sent to the CMVM, the oil company informs that the RCA net result, which excludes ‘stock’ effects and non-recurring events, stood at 26 million, while the IFRS net result improved from losses of 257 million in the first quarter of last year to a positive result of 161 million in the same period this year.
Between January and March this year, the accounts of the company led by Andy Brown were benefited mainly by the upstream segment, whose EBITDA grew 53% year-on-year to 438 million euros.
The rise was due to the appreciation of oil during this period, which helped the depreciation of the dollar against the euro and the 5% drop in production, which was impacted “by operational and logistical constraints offshore.
In the commercial segment, a decrease of 23% to €69 million was recorded, due to lower sales of oil products and natural gas
In the refining and distribution segment, EBITDA was -6 million, down 96% year-on-year, “impacted by the negative contribution of refining, reflecting the unfavourable context of refining margins, and by the lower contribution of Midstream, following restrictions related to the supply of natural gas, negative effects related to the lag in pricing formulas for oil products, and the increase of regasification costs in Portugal”, Galp explained.
In the commercial segment, there was a decrease of 23% to 69 million euros, due to the reduction in sales of oil products and natural gas, as a result of the containment measures.
Between January and March, Galp’s adjusted operating cash flow increased 46% to €445 million and FCF generation reached €175 million, or €518 million including €343 million of proceeds from the sale of the stake in GGND (Galp Gás Natural Distribuição, S.A.), which was completed during the quarter.
In this period, the oil company’s investment grew 23% to 178 million euros, while net debt rose 4% to 1,552 million euros.
