Galp multiplied profits sixfold to 155 million euros in the first quarter of the year, a result that was also fuelled by the rise in oil prices, which made the extraction business perform excellently.
EBITDA in the upstream area was €803 million, double what it was a year ago, “reflecting the increase in production and oil and gas realisations, supported by improved oil trading conditions and new gas contracts,” the Portuguese oil company explained. Galp is targeting an upstream result of 2.2 billion in 2022.
The other business areas had results that were not extraordinary. The commercial business (which includes fuel sales at the pumps) posted EBITDA of ¤56 million in the first three months of the year, down 19% year-on-year. Sales of oil and gas products increased 25% and 13%, respectively, but the result was down due to price pressure in the gas and power activities. “Additionally, as of this quarter, the Commercial segment includes the reallocation of the growth platforms of the new businesses division (decentralised energy management and mobility solutions),” Galp said.
In refining & midstream, the result was two million euros, improving on the six million euros loss a year ago, with Galp citing a negative impact of 90 million euros from the “lag in pricing formulas for oil products”, which overshadowed the good performance in Refining.
The Renewables and New Businesses area recorded a loss of EUR 1 million.
Taking all businesses together, Galp recorded sales of €5.66 billion in the first quarter, up 70% compared to the same period in 2021, while cost of goods sold rose 79% to €4.3 billion.
The oil company’s EBITDA increased 74% to €869 million, due to “strong upstream performance, supported by higher oil prices, and refining performance, following the favourable international environment for refining.”
Galp closed the first quarter with net debt of €2.4 billion, up 35% on the 2021 period. The investment of the group led by Andy Brown was 122 million euros.