Covid-19 pandemic affects Galp’s oil production

Galp Energia produced less oil at the start of 2021. It recorded a 5% reduction in the exploration of raw material, while the refining business showed an even greater drop due to the discontinuation of refining activities in Matosinhos. Still, the margin on this business has grown.

According to the “trading update” sent to the Portuguese Securities Market Commission (CMVM), the working interest production, which includes all costs arising from raw material exploration operations, shrank by 5% in the first quarter, to 125,200 barrels per day. Net entitlement production fell by the same proportion.

The oil company produced less raw material, so it also refined less. Total raw materials processed fell by 26% year-on-year, with part of this drop being due to “Galp’s decision to discontinue refining activities in Matosinhos.”

Despite refining fewer raw materials, the company’s refining margin increased by 9% to two dollars, benefiting from the recovery of oil prices in international markets. In the first three months of this year, Brent traded at an average price of 61.1 dollars, up 22% on the same period last year.

Sales of oil products slumped by 12%, and the fall was even more significant with sales of oil products to customers, which shrank by 25%, with the drop in natural gas overshadowing the 6% rise in electricity sales.