4/30/2024 | Results

Galp 1Q24 Results

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)        
  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

To access the analysts Q&A webcast, click here.

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

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