4/29/2014 | Results

Galp Energia’s first quarter of 2014 results

Galp Energia releases today the first quarter of 2014 results with the following highlights:

Galp Energia releases today the first quarter of 2014 results with the following highlights:

Progress in the exploration and appraisal activities, namely with the conclusion of drilling of the Pitú exploration well, which resulted in the discovery of the first accumulation of oil and gas in the deep water of Brazil’s Potiguar basin. Also in Brazil, Galp Energia and its partners proceeded with appraisal activities, namely to optimise the development plan of the Iara area in block BM-S-11, in the Santos basin.

Relevant development activities in the Santos basin, namely related to the activities performed in the Lula NE area, where the FPSO Cidade de Paraty (FPSO #2) produced from two producer wells. Also in the first quarter, the installation of the first system of buoyancy supported risers (BSR) was concluded, and it is expected that the second and third permanent producer wells start production during the second quarter of 2014, according to the plan previously defined. Galp Energia and its partners anticipate that FPSO #2 will reach full production capacity in the fourth quarter of the year, as initially expected.

Ebitda amounted to €265 m in the first quarter of 2014, up 5% year on year (yoy), supported by the increase of net entitlement production in the Exploration & Production (E&P) business segment and stronger LNG supply & trading activity of Gas & Power (G&P) business segment, which jointly offset weaker results from the Refining & Marketing (R&M) business segment. Net profit in the first quarter of 2014 retreated €29 m yoy to €47 m as depreciation charges surged in the R&M business segment following the start-up of the hydrocracking complex.

In the second quarter of 2014, working interest production of oil and natural gas is expected to average around 26 kboepd, impacted by the end of the EWT in the Lula South and Lula Central areas. In the R&M business segment it is expected that the volume of crude oil processed continues to be impacted by the general outage at the Sines refinery; the volumes sold to direct clients are expected to increase yoy, considering an anticipated slight recovery in the Iberian market. In the G&P business segment, volumes of natural gas sold are expected to decrease QoQ, as volumes sold in the residential segment benefited from the seasonality effect in the first quarter of 2014; the LNG supply & trading activity should continue to support the volumes sold in the period, although at less extent than in the first quarter.

All the documents related to the first quarter of 2014 results, including the Excel tables, are available here.

Source: Galp Energia, SGPS, S.A.

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