Galp goes from losses to profits of €166 million in 2021 H1

  • ECO News e Lusa
  • 26 July 2021

In addition to returning to profit, Galp Energia's EBITDA rose to €1.071 billion.

Portugal’s leading oil and gas company, Galp Energia, had a second-quarter profit of €140 million, for a first-half profit of €166 million, against a €22-million loss in the first half of 2020, according to results communicated to the country’s Securities Markets Commission (CMVM).

In the first half as a whole, the company’s EBITDA – earnings before interest, taxes, depreciation and amortisation – was €1.071 billion, up 41% year-on-year, thanks to what the release described as “better market conditions”.

Galp’s adjusted operating cash flow (OCF) in the first six months of the year was also up 68% year-on-year, at to €914 million, as second-quarter adjusted OCF of €470 million, almost doubled year-on-year, “given the challenging macroeconomic conditions of 2020, supported by the higher contribution of ‘upstream’, as well as the better performance of ‘downstream’ activities.”

In the first half of the year, capital spending totalled €402 million, with upstream accounting for 71% of the total, while downstream activities accounted for 11% and renewables and new businesses 16%. Net investment increased by €8 million from a year earlier, “considering divestment revenues during the period, particularly the stake in GGND,” Galp said, referring to its associate Galp Gás Natural Distribution, which has a stake in nine natural gas distributors in Portugal.

Working interest production – the gross production of raw materials, mainly oil, which includes all costs arising from operations – was in the first half of the year down 4% year-on-year to 126,800 barrels.

Net entitlement production – after the payment of taxes in kind to the countries where it has activities, and which reverts fully to Galp’s results – fell 4% in the first half of the year to 125,100 barrels.

At the end of the first half, after €290 million in dividends paid to shareholders and non-controlling interests of €78 million, as well as other adjustments, the company’s net debt shrank by €354 million from the end of 2020, to €1.711 billion.

Sales of oil products in the first half of the year was down 2% year-on-year to 2.9 million tonnes, while natural gas sales to customers was down 18% to 9.4 terawatt-hours (TWh), while in the electricity segment sale rose 25% to 1,970 gigawatt-hours (Gwh).