Galp increases dividend. It will pay 55 cents

  • ECO News
  • 20 February 2018

The oil company made an upwards revision of the remuneration to pay shareholders. The administration's proposal is to pay a 55 cents dividend per share, based on the 2017 results.

Galp Energia, who announced 602 million profits in 2017, will propose an increase in the dividend to pay investors. It aims to increase in 10% shareholders’ remuneration, giving them 55 cents per share based on last year’s results. And they leave an open door to hand in even more profits during the upcoming years.

After paying almost 50 cents per share based on 2016 accounts, the oil company headed by Carlos Gomes da Silva decided to increase the amount to be distributed per security in five cents, a rise from the 413 million it paid last year. Based on this dividend, and on the current 14.695 euros quotation, the dividend’s profitability is of 3.74%.

This increase, which will be voted by shareholders, comes from a growth in 2017 net results, coming from the business of exploitation and production of oil that is allowing them to release more capital. Based on the amount that was proposed, Galp Energia intends to hand in 75% of profit to investors.

"There is the potential of increasing dividends even further, while maintaining a financial discipline.”

Galp Energia

On the report presenting the 2017 reports, the company highlights the free cash flow generation of 149 million euros (after paying the 2016 dividends), which allows the company to increase their shareholders’ remuneration and, according to Galp, reflects “the company’s portfolio competitiveness and resilience”.

In that sense — assuming the capital generation rhythm will increase during the next couple of years reaching one billion euros in 2020 (it was 600 million in 2017, including paid dividends)–, Galp points to new increases in investors’ compensation. “There is the potential of increasing dividends even further, while maintaining a financial discipline”, according to a note from the Capital Markets Day presentation, taking place this Tuesday, in London.