Galp still in no hurry to sell assets in Namibia, but sees it as ‘natural solution’
‘It's clear to us that we're in no hurry. Although farm down is the natural solution in the future, there is no final timetable at this stage,’ says co-CEO Maria João Carioca.
Galp is still in no hurry to find a partner for the exploration project in Namibia, says co-CEO Maria João Carioca. The new management maintains the position that had already been expressed by the former CEO, Filipe Silva, that the oil company prefers not to rush the sale of these assets.
‘We’re still looking for the solution that gives us the certainty that we’ll get value out of the asset. Given their size and potential, we believe that a partial sale [farm down] is obviously a natural solution,’ said Maria João Carioca.
Galp’s co-CEO was speaking during a call with analysts in the aftermath of Galp’s presentation of results, which were released this Monday morning. ‘It’s clear to us that we’re in no hurry. Although the farm down is the natural solution in the future, there is no final timetable at this stage. We will certainly endeavour to have a partnership that aligns incentives with a future partner, and that is our focus now,’ she concluded.
Galp recorded profits of 961 million euros in 2024, a 4% drop from the previous year, the company said in a statement to the Portuguese Securities Market Commission (CMVM). The group said that in the last quarter of last year, Galp’s profits fell by 75% to 71 million euros.
For the whole of last year, the company had an EBITDA (earnings before tax, interest, depreciation and amortisation) of around 3.3 billion euros, down by 7% from the previous year.
Given these results, Galp’s Board of Directors will propose to the 2025 annual general meeting of shareholders an increase in the dividend per share of 15% to 0.62 euros, they said. Galp also announced a 250 million-euro share buyback programme, which will be implemented in 2025, to reduce its share capital.
80% stake in Namibia
Galp holds an 80% stake in an oil exploration block in Namibia, whose commercial potential has attracted the attention of industry giants since it was announced in April last year. The oil company assumed that it intended to maintain a significant position, but it was reported in the international media that the Portuguese company was considering selling a 40% share of these assets.
The analysts also questioned Galp about the conclusions it was currently drawing from the prospecting work taking place in Namibia. Carioca said that data is still being collected and that they are starting to aggregate the data they already have and analyse it.
At the moment, the oil company is in the fifth drilling of the oil complex in Namibia and, according to the results presentation video shared this morning, the company expects to have results from this prospecting later this month.