All the materials related with the results, including the video presentation from Galp's executives, are available here.

"The first quarter of 2024 continues to demonstrate the positive momentum of our operational delivery. Our Upstream division, our Industrial system and our Energy Management activities have contributed decisevely to our sound financial results.

In Namibia, together with our two local partners Namcor and Custos, we have significantly de-risked the Mopane complex after completing the first two wells and the DST in Mopane 1X. We have encountered significant light oil columns in high quality reservoir conditions, placing Mopane as a potential major commercial discovery. This should support the growth profile of Galp for the next decades to come, as we gradually lower the carbon intensity of our downstream businesses"

Filipe Silva, CEO

First quarter 2024

Galp delivered a robust set of results, driven by a solid upstream and refining performance and the supportive contribution from energy management activities. At the end of the quarter, Galp maintained a strong financial position with net debt to LTM RCA Ebitda of 0.4x.

RCA Ebitda reached €974 m:

  • Upstream: RCA Ebitda was €591 m, supported on resilient production levels and improved realisations, whilst also benefiting from a decrease of in-transit volumes, as well as underlifting effects. Working interest production was slightly lower YoY, given the higher concentration of planned maintenance in Brazil, whilst Coral Sul FLNG in Mozambique continued producing at plateau.
  • Industrial & Midstream: RCA Ebitda was €314 m, with the supportive availability of the refining system capturing the supportive international cracks environment, while Midstream maintained its robust contribution despite the softer gas price environment in Iberia.
  • Commercial: RCA Ebitda was €64 m following lower oil products sales, particularly in B2B segments in Spain, although partially offset by a supportive contribution from the non-fuel and lower carbon businesses, namely from convenience and gas & power activities.
  • Renewables & New Businesses: RCA Ebitda was €9 m in a quarter of seasonally low generation, further muted by lower power prices in Iberia.

Group RCA Ebit was €776 m, mostly following RCA Ebitda. RCA net income was €337 m.

Galp's adjusted operating cash flow (OCF) was €595 m, reflecting a sound operating performance. Cash flow from operations (CFFO) reached €424 m, including a working capital build of €118 m and inventory effects of €-53 m, in a period of rising commodity prices.

Net capex totalled €310 m, with investments directed mainly towards development and exploration projects in Upstream, namely Bacalhau execution in Brazil and Mopane exploration activities in Namibia, as well as to the ramp-up of construction works of the advanced biofuels unit in Sines.

After share buybacks, net debt stood at €1.5 bn.

Financial Data
€m (RCA, except otherwise stated)
Quarter
1Q23 4Q23 1Q24 % Var. YoY
RCA Ebitda 864 720 974 13%
Upstream 548 599 591 8%
Industrial & Midstream 235 63 314 34%
Commercial 71 54 64 (9%)
Renewables 35 21 9 (75%)
RCA Ebit 674 411 776 15%
Upstream 438 428 478 9%
Industrial & Midstream 199 19 280 41%
Commercial 45 19 33 (25%)
Renewables 23 (1) (2) n.m.
RCA Net income 250 284 337 35%
Special items 192 45 73 (62%)
Inventory effect (90) 6 (35) (61%)
IFRS Net income 352 336 374 6%
Adjusted operating cash flow (OCF) 363 488 595 64%
Upstream 74 417 237 n.m.
Industrial & Midstream 235 29 314 33%
Commercial 42 54 45 8%
Renewables 37 3 9 (77%)
Cash flow from operations (CFFO) 500 457 424 (15%)
Net Capex (109) (382) (310) n.m.
Free cash flow (FCF) 352 22 55 (84%)
Dividends paid to non-controlling interests - (80) (2) n.m.
Dividends paid to Galp shareholders - - - n.m.
Buybacks (77) (192) (48) (37%)
Net debt 1,341 1,400 1,506 12%
Net debt to RCA Ebitda1 0.4x 0.4x 0.4x 20%
1 Ratio considers the LTM Ebitda RCA (€3,391 m), which includes the adjustment for the impact from the application of IFRS 16 (€277 m).
Conference call details

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To access the analysts Q&A conference call, click here.

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PDF 5 606 KBGalp 1Q24 Results

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Galp Energia SGPS SA published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 05:58:05 UTC.