Galp, the Portuguese energy multinational, which recently concluded the divestment of Area 4, in the Rovuma basin, Cabo Delgado province, northern Mozambique, says that the decision is part of its strategy to focus on high return, low cost and low carbon intensity projects.
The explanation was recently given by Filipe Silva, Galp’s CEO, to Energy Connects, an information platform on the energy sector, emphasising the importance of the multinational’s decisions, contributing to the 16% increase in net profit for the 2nd quarter of 2024 amid higher oil prices and lower production costs.
‘These actions allow us to crystallise value, reduce risk and focus on higher return projects aligned with Galp’s strategy. Continue to reduce risk and grow our upstream from low-cost, low-carbon projects, while transforming our integrated midstream and downstream positions,’ said the GALP helmsman.
Galp also finalised the sale of its upstream assets in Angola, a move also in line with Galp’s strategy of focusing on high-return projects.
As a result of the strategic decisions, GALP announced a 16 per cent year-on-year increase in net profit for the second quarter of 2024, driven by higher oil prices and lower production costs.
Leaving out the main lines of the financial and production report, it emphasised that the company’s net profit reached 299 million euros (325.34 million dollars), despite a volatile commodity price environment.
However, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 7% to 849 million euros compared to the same period last year.
During this period, Galp achieved solid results in its various segments, namely the upstream which made 531 million euros in EBITDA, supported by consistent production and economic operations in Brazil.
The industrial and midstream segment contributed 226 million euros to EBITDA, benefiting from the high utilisation of the refining system and strong midstream activities, particularly in the supply and commercialisation of oil and natural gas, writes Energy Connetcs, quoting GALP’s CEO.
It should be noted that Galp has announced an agreement to sell its position in gas exploration projects in Mozambique.
These assets include the Coral South liquefied natural gas field, which has been in operation since 2022, as well as the Coral North and Rovuma LNG projects, which should receive the green light to go into production in the next two years.
Galp’s 10 per cent stake in Mozambique’s Area 4 projects was sold to ADNOC, Abu Dhabi’s national oil company.
In Mozambique, Galp maintains a presence in downstream activities, namely in the area of fuel distribution.
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