7/27/2012 | Results

2nd quarter 2012 results and strategy execution update

Galp Energia releases today the 2nd quarter 2012 results and the strategy execution update.

Galp Energia releases today the 2nd quarter 2012 results and the strategy execution update, with the following highlights:

Net profit reached €129 million in the second quarter of 2012, up 81% year on year;
Exploration drilling activity on high potential projects, underway until the end of the year;
Sines hydrocracker commissioning to start early August;
Sound financial position despite sovereign credit risk.

SUMMARY OF RESULTS – FIRST HALF AND SECOND QUARTER OF 2012

Galp Energia’s RCA net profit of €178 million in the first half of 2012 was €64 million ahead of a year earlier on the back of all business segments’ improved performance. RCA net profit for the second quarter of 2012 rose 81% yoy to €129 million as all business segments delivered better results;
Net entitlement production of crude oil and natural gas in the first half of 2012 amounted to 17.7 kboepd, 52% of which from Brazil; in the second quarter net entitlement production rose 37% to 18.8 kboepd;
Galp Energia’s refining margin in the first half of 2012 rose to Usd 1.7/bbl from Usd 0.8/bbl a year earlier; in the second quarter the refining margin rose to Usd 2.5/bbl from Usd 0.6/bbl a year earlier, influenced by the upward trend in refining margins in international markets;
The adverse economic conditions in the Iberian Peninsula led to a weaker performance of the oil product marketing business in both the first half and the second quarter of 2012 compared with a year earlier;
Natural gas sold in the first half of 2012 rose 16% yoy to 3,225 million cubic metres, driven by the LNG trading activity; in the second quarter natural gas sold rose 26% to 1,500 million cubic metres;
RCA EBIT of €269 million in the first half of 2012 was 53% ahead of a year earlier; EBIT of €174 million in the second quarter rose 43% yoy;
RCA net profit in the first half of 2012 amounted to €178 million, 72% of which was achieved in the second quarter, when earnings per share were €0.16;
Capital expenditure in the first half of 2012 amounted to €391 million, 70% of which was channelled into the Exploration & Production business segment; in the second quarter of the year, 47% of total capital spending of €190 million was taken up by Exploration & Production activities in Brazil;
At the end of the first half of 2012 the net debt to equity ratio was 18% and net debt amounted to €1,221 million, reflecting a sound capital structure.

To read the complete version of the report and presentation go to:

https://www.galp.com/en/investors/reports-and-presentations/reports-and-results

Source: Galp Energia, SGPS, S.A.