Marketing of oil products

Galp concentrates its marketing activity in Iberia, where it is a relevant player, and a presence in five African countries.

Galp takes advantage of the integration between the refining and marketing of oil products activities, with most of its sales taking place in Iberia. We have a vast distribution network and we are one of the leading operators in the region.

The Company also operates in select markets in Africa.

The focus of our operations is the marketing of oil products under the Galp brand, through:

  • Galp’s network of service stations.
  • Direct sales to wholesale customers.

We also market non-fuel products, namely through the service station network, to maximise the profitability of these assets.

Oil products marketing also covers sales to other operators and exports.

Sales to direct clients

Marketing of oil products to direct clients, either through the service stations network under the Galp brand, or by sales to wholesale clients, is focused primarily in Iberia, but also on specific markets in Africa.

The Company considers that it can create more value in these markets because of the quality and geographic advantage of its refining and logistics assets.

Retail

Through the network of approximately 1,460 service stations in Portugal, Spain and Africa, the retail segment accounts for about 30% of sales to Galp's direct clients.

Galp retains its leadership position in the retail market in Portugal and is a relevant player in Spain.

In Africa, Galp has about 160 service stations.

Retail sales

Service station management

Galp has a multi-targeted service station management strategy, and classifies them into four categories:

  • CoCo (company-owned-company-operated ).
  • CoDo (company-owned-dealer-operated).
  • CoFo (company-owned-franchise-operated).
  • DoDo (dealer-owned-dealer-operated).

About 40% of the stations in Iberia are managed using the CoDo model.

Own network stations, operated using the CoCo model, represent about 23% of all Galp service stations.

Galp has also been focusing on streamlining its value proposition throughout its network of stations in Iberia by implementing the Kaizen methodology.

This goal of this project is to standardise the service in Portugal and Spain through communication improvements, space organisation and service area planning.

Commitment to quality – Evologic

The Company remains focused on selling additive-enhanced fuel and committed to the excellence of the products and services provided.

With this in mind, Galp has launched a new fuel offering, Evologic diesel and gasoline, high performance additives which allow for greater savings, extended engine life and greater efficiency, with lower GHG, consequently benefiting the environment.

Non-fuel products

Non-fuel products marketed through the service station network account for over 10% of the retail contribution.

Galp has been focusing on improving the customer experience in its network of stores using the Tangerina brand, by investing in a more appealing form of in-store communication, more aligned with the digital era.

We also use complementary services supported by strategic partnerships, generating added-value for the customer.

Wholesale

Through its wholesale activity, Galp sells oil products to segments which include:

  • Aviation.
  • Industry.
  • Contractors.
  • Marine.
  • Lubricants.

Galp's strategy in this business area is to build customer loyalty by developing integrated solutions and providing value-added services such as:

  • E-ordering - Electronic orders.
  • Serviexpress - Iberian service for the direct distribution of diesel to small commercial and residential customers.

In Spain, Galp is a leading operator marketing gas oil for transport, agriculture and heating, and in the sale of fuel oil to industry.

Sales by wholesale segment

LPG

Galp distributes and markets the propane and butane gas it produces at the Sines and Matosinhos refineries through over 20,000 points of sale to more than one million end customers.

LPG is distributed through four segments:

  • Bottled.
  • In bulk.
  • LPG-Auto.
  • Piped.

In Portugal, the bottled segment is the most important and in Spain, the bulk segment is the most significant.

Sales to other operators and exports

In response to demand in the oil products market in Iberia, Galp supplies to other operators, taking advantage of the location of its refineries.

We also operate in the international export market as a route for marketing production from refineries, prioritising markets in close proximity to our refining system, whilst also exploring opportunities in other markets.

Exports by country in 2017

Exports by product in 2017

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