Strategy

After implementing a scenario-planning process aimed at identifying long-term alternative outcomes for the energy sector, Galp’s strategy remains focused on developing a resilient Exploration & Production portfolio. This portfolio is embedded with an efficient and competitive downstream business, supported by innovative and differentiating solutions that promote the transition into a lower carbon economy.

This strategy is based on factors such as:

• Solid financial capacity
• A client-centered culture
• More agile, innovative and technology-based partnerships

At the same time, the strategy is based on a meritocratic culture of autonomy and accountability that promotes talent development.

With this approach, Galp is preparing to face the energy sector’s dynamics and challenges, within an uncertain and complex context, capitalising on its assets and competitive advantages.

Galp believes that ensuring the protection of people, the environment and assets, as well as the communities it operates in, and adopting an ethical conduct are indispensable for its actions and strategic execution.

In the upstream, Galp continues to ensure the sustainability of its E&P portfolio, which should be competitive and profitable in any expected oil and carbon pricing scenario.

Our strategy focuses on identifying new opportunities in geographies where we have a competitive advantage or a strategic angle, namely through exploration and discovered resources opportunities, in order to sustain the competitiveness of future production growth while maintaining a balanced exposure to gas.

The main priorities will continue to be the disciplined execution of the existing projects and to extract more value from them.

In the downstream, Galp is focused on adapting to new product specifications and consumption patterns, embedded in an open, digital and sharing economy; a world where consumer’s behaviour is permanently changing, and with a growing cross-industry competition, where competitors are less evident.

Galp will focus on improving the efficiency and conversion capabilities of its refining system, whilst continuing to strengthen its competences in trading commodities, leveraging existing opportunities in the global energy markets.

It will seek to develop African clusters, expanding within its respective hinterlands.

Oil and natural gas will remain core to Galp's strategy, but the Company will develop new solutions and explore business opportunities supported by low-carbon energy sources, addressing the challenges posed to its industry.

Galp aims to play an active role in changing the energy paradigm, in particular by anticipating new trends; by adapting its portfolio to future needs, creating synergies with the present activity whenever possible; consolidating the Company’s knowledge and enhancing asset diversification, with the corresponding risk reduction, namely through lower carbon intensity energy, as is the case of renewables differentiated solutions.

We acknowledge that the structural changes in energy consumption will boost new solutions that are innovative and increasingly sustainable at an economic, environmental and social level.

In connection to the ongoing digital transformation, a set of new capacities has arisen, with old solutions giving place to innovative products and services. Diverse areas such as mobility, decentralised energy production or domotics impact the energy sector, leading to significant gains in energy efficiency and to a wider range of options for clients.

Galp will continue to promote the transition into a client-focused organisation, with the skills for anticipating and fulfilling their needs.

It will also develop partnerships that help complement Galp’s value proposition and to diversify its product and service portfolio, making it adequate to the natural dynamics of a market that is based on information and knowledge.

We continue to invest in innovation, research and technological development, crucial for the continuous extraction of value from our assets and for the creation of new business models, as well as for the sustainability of the Company and the communities we operate in.

In order to face the industry’s transformational challenges, Galp shall invest in the organisational transition into a model that is strongly supported by digital solutions and information management. To that end, the Company will encourage its employees to work and make decisions in highly complex and uncertain contexts.