Galp Energia de-dramatizes oil slump, but talks about a “challenging cycle”
Galp is following the situation very closely. It acknowledges the challenges, but says it is confident given the integrated profile of the company.
Galp Energia, as well as most oil companies, is being heavily punished on the stock market in the face of falling oil prices on international markets. It is sinking on the stock market, following the abrupt fall in raw material prices, a move that the company is de-dramatizing. It recognizes the challenging cycle, but is confident about the future.
“Galp Energia is following the situation very closely,” referring to the “price war” between Saudi Arabia and Russia, which led Brent to fall over 30%, dragging the company’s shares to a fall of up to 25%. The bonds continue to fall 16.24% to 9,616 euros.
“These occurrences are cyclical and are part of the dynamics of the markets, and should be addressed calmly,” says the company, in response to questions posed by ECO. “Markets have been pressured by a lower global demand expectation caused by the circumstances derived from Covid-19 and now also on the supply side, with OPEC/Russia expecting higher production of raw materials,” it says.
The company led by Carlos Gomes da Silva acknowledges that it is facing “a challenging cycle”. However, he says he is “confident, taking into consideration the integrated profile of our business, given that we operate throughout the sector”.
“In this context, Galp will maintain its focus on the operational optimization of its activities, based on a high resilience of its projects and on the financial robustness of the company,” Galp says.
