2/10/2014 | Results

Fourth quarter and twelve months 2013 results

Galp Energia releases today the fourth quarter of 2013 results with the following highlights

Galp Energia releases today the fourth quarter of 2013 results with the following highlights:

Progress in the exploration and appraisal activities, namely with the completion of drilling of the Bracuhy and Iara HA wells, in the Santos basin, and the start of drilling of Pitú well, in the Potiguar basin, in Brazil. The Bracuhy well confirmed the connectivity with the Júpiter area and reinforced the volumes of oil and condensates to be developed. After the drilling of Iara HA was completed, the consortium began a Drill Stem Test to test the pressure, permeability and productivity of that area of the reservoir. In the Potiguar basin, the exploration well Pitú started to be drilled and revealed the first discovery of an oil accumulation, in the secondary target, thereby opening a new play in the Brazilian offshore.

Relevant development activities in the Lula project, namely related to the progress of works in the Lula NE area, where FPSO Cidade de Paraty produced through one producer well c.30 kbopd since the connection of the first gas injector well, in June. In January 2014, the second producing well was connected through flexible risers to the FPSO, according to the previously announced contingency plan, which led to a production increase of around 28 kbopd. The consortium proceeded with the installation of the first Buoyancy Supported Risers system, being already submersed and connected to four foundations at the seabed through eight tethers.

Ebitda amounted to €271 m in the fourth quarter of 2013, up 16% year on year (yoy), supported by the increase of net entitlement production and stronger LNG supply & trading activity, which offset lower results of the R&M business segment. Net profit in the fourth quarter of 2013 rose €8 m yoy to €92 m, despite being affected by higher depreciation in the E&P and R&D business segments.

In the fourth quarter of 2013, working interest production is expected to reach c.26 kboepd, as the production will be positively affected by the ramp-up production of the second producer well which is connected to FPSO Cidade de Paraty, by the increase of production of FPSO Cidade Angra dos Reis, and by the contribution of the EWT, underway in the Lula Central and Lula South areas. In the R&M business segment it is expected that oil products sold to direct clients increase yoy, due to the expected recovery of market demand. Volumes of crude processed are expected to decrease, as a result of a general planned maintenance outage at the Sines refinery, starting in the beginning of March and which is expected to last for 45 days. In the G&P business segment, volumes of natural gas sold are expected to be in line with volumes of the previous quarter, supported by a robust LNG supply & trading activity.

All the documentos related to the fourth quarter 2013 results, including excel tables, are available here.

Source: Galp Energia SGPS, S.A.