First quarter 2021
Galp presents today its 1Q21 results. To access the report and all documents related with the results, please click here.
Galp’s adjusted operating cash flow1 reached €445 m, up 46% YoY, driven by an improved Upstream macro context, which more than offset the weaker downstream environment. CFFO was up 54% YoY, to €377 m including changes in working capital and inventory effect, as well as special items registered during the period.
FCF generation reached €175 m, or €518 m including proceeds of €343 m from the GGND (Galp Gás Natural Distribuição, S.A.) stake sale, which was completed during the quarter.
Net debt at the end of the period was €1,552 m, leading to a net debt to RCA Ebitda ratio of 1.1x.
RCA Ebitda was €499 m, with the following highlights:
- Upstream: RCA Ebitda was €438 m, a 53% increase YoY, reflecting higher oil prices, which offset the lower production and the depreciation of the USD against the Euro.
Working Interest (WI) production was down 5% YoY to 125 kboepd, impacted by offshore operational and logistics constraints.
- Commercial: RCA Ebitda of €69 m, down 23% YoY, driven by the decline in oil products and natural gas sales during the quarter, reflecting the weak Iberian demand conditions resulting from the continuing lockdowns.
- Refining & Midstream: RCA Ebitda was -€6 m, a €96 m decrease YoY, impacted by a negative Refining contribution, reflecting the pressured refining margins environment, and a weak Midstream contribution, impacted by gas sourcing restrictions, a negative swing in pricing lag effects and higher regasification costs in Portugal.
- Renewables & New Businesses: All solar plants have resumed normal operations by the end of the quarter, with no relevant Ebitda in the quarter
RCA Ebit was up 30% YoY to €284 m, supported by the stronger operational contribution and lower DD&A.
RCA net income was €26 m. IFRS net income was €161 m, with an inventory effect of €101 m and special items of €34 m.
1The adjusted operating cash flow indicator represents a proxy of Galp’s operational performance excluding inventory effects, working capital changes and special items.
| €m |
|
| |
1Q20 |
4Q20 |
1Q21 |
Var. YoY |
% Var. YoY |
| RCA Ebitda |
469 |
410 |
499 |
30 |
6% |
| Upstream |
286 |
319 |
438 |
153 |
53% |
| Commercial |
90 |
71 |
69 |
(20) |
(23%) |
| Refining & Midstream |
90 |
17 |
(6) |
(96) |
n.m. |
| Renewables & New Businesses |
(1) |
(3) |
(2) |
1 |
n.m. |
| RCA Ebit |
217 |
159 |
284 |
66 |
30% |
| Upstream |
145 |
161 |
314 |
168 |
n.m. |
| Commercial |
68 |
47 |
44 |
(24) |
(35%) |
| Refining & Midstream |
9 |
(51) |
(67) |
(76) |
n.m. |
| Renewables & New Businesses |
(7) |
(1) |
(3) |
(4) |
(62%) |
| RCA Net income |
29 |
3 |
26 |
(4) |
(13%) |
| IFRS Net income |
(257) |
(35) |
161 |
418 |
n.m. |
| Special items |
(8) |
(60) |
34 |
42 |
n.m. |
| Inventory effect |
(278) |
22 |
101 |
379 |
n.m. |
| Capex |
144 |
173 |
178 |
33 |
23% |
| Adjusted operating cash flow |
305 |
373 |
445 |
140 |
46% |
| Upstream |
132 |
241 |
390 |
258 |
n.m. |
| Commercial |
90 |
70 |
67 |
(24) |
(26%) |
| Refining & Midstream |
84 |
42 |
(9) |
(94) |
n.m. |
| Renewables & New Businesses |
(1) |
(3) |
(2) |
2 |
n.m. |
| Cash flow from operations |
244 |
231 |
377 |
133 |
54% |
| Free cash flow |
90 |
95 |
518 |
427 |
n.m. |
| Dividends paid to non-controlling interests |
(108) |
(2) |
- |
108 |
n.m. |
| Dividends paid to shareholders |
- |
- |
- |
- |
n.m. |
| Net debt |
1,496 |
2,066 |
1,552 |
56 |
4% |
| Net debt to RCA Ebitda1 |
0.7x |
1.5x |
1.1x |
0.4x |
n.m. |
1 Ratio considers the LTM Ebitda RCA (€1,601 m on 31 March 2021), which includes the adjustment for the impact from the application of IFRS 16 (€186 m on 31 March 2021).
GGND stake sale conclusion
In October 2020, Galp agreed with Allianz the sale of 75.01% of GGND for a total consideration of €368 m. Completion of the deal occurred in 1Q21 and Galp receiving €343 m, with the remaining €25 m expected to be received in 2Q21.
Conference call details
Webcast
To access the webcast, click here.
Dial-in numbers
Portugal
+351 308 800 848
UK/International
+44 (0) 207 192 8000 or +44 (0) 800 376 7922 (UK toll free)
Conference ID: 2077431
Galp | Investor Relations Team
Contactos:
Tel: +351 21 724 08 66
Website: www.galp.com
Email: investor.relations@galp.com