Galp first-half profit jumps 44%, plans higher dividend

Galp said first-half net profit jumped 44% to €812 million, as higher oil prices boosted earnings across its business, and the Portuguese energy group plans to raise its annual dividend by 10% to 70 cents a share. The company also upgraded its 2026 outlook and signalled stronger cash returns.

In its half-year report released on Monday, Galp said it now expects to reach €4 billion in EBITDA this year, up from its previous guidance of at least €2.6 billion for 2026. The board said it will propose the higher dividend at the 2027 annual general meeting, with an interim payment of 35 cents per share due in August 2026.

Upstream was the main driver, with oil production up 19% and gas production up 8% in the first half, lifting EBITDA in that segment by 76% to €1.384 billion. Galp said output at the Bacalhau field in Brazil increased in the second quarter. In industrial and midstream operations, EBITDA rose 22% to €656 million as the refining margin climbed to $15.8 per barrel from $5.9, despite a 3% drop in raw material processing linked to storms in Portugal earlier this year.

In commercial operations, sales of oil products fell 2%, with weaker demand in Portugal outweighing stronger demand across the border in Spain. Natural gas sales rose 5% and electricity sales increased 18%, helping segment EBITDA grow 21% to €197 million. In renewables, installed capacity rose 29% to 2.3 GW before the separately announced acquisition of 15 wind farms in Spain, which lifted that figure to 2.7 GW, while renewables EBITDA fell 52% to €9 million due mainly to lower solar power prices in the first quarter.

Galp also said talks on a partial merger with Spain’s Moeve are “progressing constructively”, with a potential agreement now expected to be signed in the second half of 2026. The proposed combination of downstream assets, including service stations and refineries, has drawn scrutiny in Portugal, where the government has said it is closely monitoring the process because of the strategic importance of the Sines refinery and energy supply security.

Galp buys 15 wind farms in Spain valued at €420m

Galp said on Monday it had acquired a 361 MW portfolio of wind assets in Spain from Acciona Energía, in a deal valued at €420 million on an enterprise value basis.

The transaction covers 15 onshore wind farms in several Spanish regions and has already been completed, with no debt attached to the assets, according to the company. Galp said the portfolio is fully operational, with an average commercial start date of 2005, and is expected to generate about 800 GWh of electricity a year.

Following the acquisition, Galp said its installed renewable capacity has risen to 2.7 GW, allowing it to produce around 5 TWh of electricity annually. Wind generation now accounts for about 30% of that total.

The deal follows another wind portfolio acquisition announced by Galp in April, involving 351 MW in Aragon, Castile and Leon, Castile-La Mancha and Andalusia. Galp said the two transactions together represent €740 million of investment and add more than 700 MW of wind capacity this year across 32 wind farms in Spain.

Originally published at Eco.pt