Galp Energia releases today the 2nd quarter 2013 results with the following highlights:
Progress in the execution of Exploration & Production strategy, namely through an intensive exploration campaign in Brazil, Namibia and Mozambique, the continuous de-risk of significant development projects in Brazil and through the access to new exploration blocks in Brazil;
The exploration campaign included, in the second quarter of 2013, the drilling of the two first exploratory wells in the Brazilian Potiguar basin, one of which already announced to be non-commercial, and two wells in the Walvis basin, in Namibia, with the Wingat and Murombe wells considered to be non-commercial and dry, respectively. During the quarter, the drilling of Bracuhy well, in Santos basin, in Brasil, and Agulha-1, in Mozambique, has also started. Regarding appraisal activities, the formation test of Iara West-2 was concluded, which confirmed the excellent productivity of the reservoirs in that area, and the first horizontal well in Iara started to be drilled with the goal of evaluating the productivity of the central area of that field;
Start of operations on time of FPSO Cidade de Paraty in the Lula NE area. The FPSO, currently connected to a producer well, is expected to reach an exit production rate of 75 kboepd by the end of 2013, and to reach full capacity in 18 months, that is, during the second half of 2014. The consortium continues to execute its procurement strategy to mitigate the execution risk of the Lula/Iracema project. In what regards the FPSO Cidade de Mangaratiba, it has already arrived at the shipyard in Brazil during the quarter, and it is expected to come into operation in the fourth quarter of 2014;
Stable operations of the hydrocracking complex at the Sines refinery, positively impacted Galp Energia’s refining margin and, subsequently, the results of the refining activity during the quarter. That complex reached an utilization rate of 96%, during the period;
Net profit in the second quarter of 2013 reached €86 m, a decrease of €42 m yoy. In fact, despite the improved operational performance, namely in downstream and gas businesses, results were impacted by the increased amortisations and depreciations, that were due to the start of depreciations related with the hydrocracking complex, and due to weaker financial results, which had been impacted by currency exchange gains of €29 m in the second quarter of 2012, and started to be affected by the interest costs related to the Sines upgrade project that stopped being capitalised in the second quarter of 2013;
In the third quarter of 2013, working interest production is expected to reach c.27 kboepd supported by the contribution of production from the FPSO Cidade de Paraty, as well as the normalised operations of the FPSO Cidade de Angra dos Reis. In the Refining & Marketing business it is expected that volumes of crude processed increase around 10% qoq, positively influenced by the stable operations of the hydrocracking complex, although, demand of oil products should continue to be impacted by the adverse economic environment in the Iberian Peninsula. In the Gas & Power business, it is expected that LNG trading activity continues to support the volumes of natural gas sold.
All the documents related to the second quarter 2013 results, including the Excel files, are available at:
http://www.galpenergia.com/EN/Investidor/Relatorios-e-resultados/resultados-trimestrais/Paginas/Resultados-do-ultimo-trimestre.aspx
Source: Galp Energia, SGPS, S.A.