Galp’s refining margin declines 65% in Q3, but oil production increases
The Portuguese company saw its refining margin sink by 65% compared to the previous quarter, from $22.3 to $7.7 per barrel of oil or equivalent.
Galp Energia increased its oil production by 7% in the third quarter compared to the previous quarter. Refining margin fell by 65% quarter-on-quarter, despite remaining almost double that of a year ago.
In the trading update published Wednesday, Galp registered a growth of 7% quarter-on-quarter in oil production, from 107,700 to 114,800 barrels per day, but reported a drop of 2% compared to the same quarter of the previous year.
In a period marked by the decline in oil and fuel prices, Galp saw its refining margin sink by 65% compared to the previous quarter, from $22.3 to $7.7 per barrel of oil or equivalent. However, it is 92% higher than the $4 per barrel registered a year ago, before the impact of the war on the oil market.
The company explains the increase in the daily oil production or equivalent with “reduced planned maintenance and higher efficiency across the units”. At the same time, it justifies the lower refining margin with “lower gasoline cracks.”
