Galp’s profit rises 20% to a record €1.15 billion in 2025

Galp posted a profit of €1.154 billion in 2025, compared to €961 million in the previous year, representing an increase of 20%. The results were announced on Monday in a statement to the Portuguese Securities Market Commission (CMVM) before the opening of the stock market.

The Portuguese oil company closed 2024 with profits of €961 million, 4% less than in 2023, when it achieved a record net profit of over €1 billion — more precisely €1.002 billion.

Last year, EBITDA fell 8% from €3.3 billion to €3 billion, with the Upstream segment (i.e., oil and gas exploration) falling 19%. The total EBITDA figure “reflected strong operating performance in a volatile environment in terms of both macroeconomics and commodity prices”, the company explained in its statement.

While Galp’s oil production increased by 2% to 111 thousand barrels of oil equivalent per day, prices fell by 14% to an average of $66.2 per barrel, and production costs per barrel rose by 20%. In contrast, gas production increased by 18% and prices also rose by 5% to $35 per barrel of oil equivalent.

The Industrial and Midstream segment achieved EBITDA of €952 million, an increase of 9%. In this area, refining volume fell by 17%, the refining margin fell by 4% and production costs shot up by 87%. However, there was a positive effect from the increase in gas trading volumes, which rose by 62%.

The biggest jump, however, was in the commercial area: EBITDA shot up 25% to €384 million. According to Galp, this was due to the “robustness” of the mobility segment in Iberia and the improvement in the B2B segment in Spain, as well as the growth in non-fuel-related offerings in the Convenience & Customer Solutions area, which accounted for 35% of EBITDA in this category.

Renewables also followed the upward trend, rising 6% to €50 million, despite the selling price falling 2% to €42 per megawatt-hour and generation also falling 10% to 2,136 gigawatt-hours.

This year, capital expenditure (CAPEX) totalled €95 million, mainly allocated to the development of Bacalhau in Brazil, the implementation of green hydrogen (H2) and HVO/SAF projects at the Sines industrial complex, and the construction of solar and storage capacity in Iberia. Net debt increased by €126 million to €1.3 billion.

Galp proposes a 4% dividend increase and wants to buy back shares worth €250 million

Following record profits last year, Galp’s management is proposing a 4% increase in the dividend distributed to shareholders, bringing it to 64 cents. In addition, it wants to launch a share buyback programme.

“Galp’s Board of Directors will propose to the Annual General Meeting a 4% increase in the dividend per share (DPS) to €0.64”, according to the report and accounts published this morning. This increase is proposed for the 2025 fiscal year, with an initial interim dividend of 31 cents per share already anticipated in August last year.

The dividend increase will be complemented by a share buyback programme worth €250 million, which will begin in March 2026, the company predicts.