10/28/2013 | Earnings

Galp Energia’s 3rd quarter 2013 results

Galp Energia releases today the 3rd quarter 2013 results with the following highlights.

Galp Energia releases today the 3rd quarter 2013 results with the following highlights:

Progress of the exploration activities, namely with the drilling of prospects Bracuhy, in Santos basin, in Brazil, and Agulha, in Mozambique. Results obtained in Bracuhy well reinforce the oil and condensates volumes in block BM-S-24 development. Regarding Agulha, this proved a new play in the Southern part of Area 4. In Namibia, the exploration campaign scheduled for 2013 was concluded, with the drilling of wells Murombe-1 and Moosehead-1, which were considered to be dry. In Potiguar basin, Galp Energia concluded the Araraúna and Tango wells, which were considered to be non-commercial discoveries.

Development activities of Brazilian projects are moving forward, with the FPSO Cidade de Paraty producing c.30 kbopd since the connection of the first gas injection well in August, being expected to reach full capacity during the fourth quarter of 2014, that is, in 18 months after it began operations. The installation of the first Bouyancy Supported Riser (BSR) was affected by adverse weather conditions and it is now scheduled for the first quarter of 2014. In order to mitigate the impact of this delay, the consortium is evaluating the connection of the second producer well in the fourth quarter of 2013 using a flexible riser.

Ebitda amounted to €312 m in the third quarter of 2013, which was in line with a year earlier as rising net entitlement production in E&P and stronger LNG trading activity in G&P offset a worse refining activity performance. Net profit in the third quarter of 2013 reached €57 m, a decrease of €42 m yoy, following the increase of amortizations and provisions, and the weaker financial results.

In the fourth quarter of 2013, working interest production is expected to reach c.27 kboepd, as the start of the extended well tests in the Lula Central and Lula Sul areas should offset the impact of maintenance activities on the Mexilhão platform. In the R&M business it is expected that volumes of crude processed stay in line with the last quarter, and the oil products sold continue to be impacted by the adverse economic environment in the Iberian Peninsula. In the G&P business, volumes of natural gas sold are likely to fall in comparison with the third quarter, although it is expected that volumes remain supported by the LNG trading activity.

All the documents related to the third quarter 2013 results, including the Excel files, are available here.

Source: Galp Energia, SGPS, S.A.