The Portuguese company produced less oil in the second quarter but saw its refining margin rise from $6.9 to $22.3 per barrel of oil equivalent (BOE).
Galp Energia produced less oil in the second quarter, but the refining margin soared from $6.9 to $22.3 per barrel of oil equivalent (BOE), according to the company’s latest trading update. This performance comes at a time when the market continues to be strongly conditioned by the war in Europe.
Galp’s oil production, between April and June, fell 6% year-on-year and 8% quarter-on-quarter. It averaged 107.7 thousand barrels per day.
The company’s working interest production shrank 7% year-on-year and 9% quarter-on-quarter, to 119.6 thousand barrels per day. Net entitlement production stood at 118.1 thousand barrels per day.
At a commercial level, the sale of oil products rose 22% year-on-year, while sales of natural gas to clients increased 12% in the same period, but fell 10% compared with the first quarter of 2022. As for electricity, the sales grew 7% compared to the second quarter of 2021 and fell 4% year-on-year.
In the renewable energy segment, Galp’s gross installed capacity was 1,162 MW in the second quarter, 15% more than in the first quarter and 25% more than a year earlier.
Renewable energy generation was 687 GWh, up 45% year-on-year.
Also in the trading update, Galp said it expects a “robust operational cash flow (OCF) generation in 2Q22,” which will lead to a “net debt reduction”. The quarterly results will be announced to the market on July 25.