Galp | Press releases

Africa’s first deep-water floating LNG production unit ready to sail away to Mozambique’s offshore Area 4 - <ul> <li>The Coral-Sul project, expected to start production next year, will bring Mozambique into the small group of LNG producing and exporting countries</li> <li>Spanning 432 meters long and 66 meters wide, the unit weighs around 220,000 tons and has the capacity to accommodate up to 350 people</li> </ul>

Third quarter and first nine months results 2021 - Galp presents today its 3Q21 and first nine months results. Galp delivered a robust set of results during this quarter, capturing the improvement in macroeconomic conditions, namely higher Brent prices, stronger international refining margins and favourable pool prices in Iberia. Our Ebitda surpassed €600 m, in a quarter also marked by some operational challenges, which give us head room to further improve our performance in the future. Our cash delivery reflected a temporary effect related to our hedges to de-risk gas sourcing and supply prices, which were impacted by the recent volatility in natural gas prices. While our net debt to Ebitda ratio increased slightly above our target, we remain confident that Galp’s cash flow profile will allow us to deleverage and the temporary nature of these effects should enable us to deliver a competitive shareholder remuneration related to 2021. We are delivering on our commitments to grow our established businesses while expanding our Renewables ventures by developing and securing access to funding for our low carbon businesses. We are thrilled to continue executing our proposed Renewables strategy, expanding in and outside Iberia with the entrance in Brazil, leaving our current portfolio at c.4.7 GW gross capacity. These are important times in Galp’s history and I am confident that we are in the right path to thrive through the energy transition. Andy Brown, Galp’s CEO

EIB to provide Galp with €732 million to promote climate action and social cohesion in Spain and Portugal - Three loans signed between the EIB and Galp for a total amount of €406.5 million: <ul> <li>€325 million EIB green energy loan to finance Galp´s photovoltaic plants with a total capacity of about 2 GWp across Spain. An additional €325 million is approved to be lent by the EIB in Project Finance format at a later stage.</li> <li>€40 million EIB green energy loan to finance Galp’s photovoltaic plants with a total capacity of 144 MWp in Algarve, Portugal.</li> <li>€41.5 million EIB loan to support Galp’s electric mobility project that consists of the rollout of 5,500 charging points across Iberia.</li> </ul> The European Investment Bank (EIB) and Galp signed three financing agreements for the construction of solar power plants and the deployment of electric vehicle (EV) charging stations across Iberia, promoting climate action and social cohesion in some of the continent’s most fragile regions in terms of climate and economic resilience. Overall, Galp and the EIB signed a total financing of €406.5 million, which could be increased up to €731.5 million at a later stage, with an additional approved amount of €325 million. Altogether, the three projects support climate action and social cohesion, and will generate on average a total of 3.6 TWh of renewable energy/year, the equivalent energy consumption of nearly 940 000 households. The EU bank is highly committed to the European Union’s efforts to be <a href="https://ec.europa.eu/clima/policies/strategies/2050_en" target="_blank">climate-neutral by 2050</a>. Through the <a href="https://www.eib.org/en/press/all/2020-307-eu-member-states-approve-eib-group-climate-bank-roadmap-2021-2025" target="_blank">Climate Bank Roadmap</a>, the EIB aims to mobilise €1 trillion of investments in climate action and environmental sustainability during the critical decade ending in 2030. To this end, the Bank will gradually increase the financing it allocates to these objectives to 50% by 2025. Galp is fully committed to be net zero by 2050. On the other hand, Galp is one of the leading solar photovoltaic producers in Iberia. It has committed to allocate half of its 2021-2025 net capex in projects related with the transition to a low carbon energy model, including 30% in renewable energies and 5% in new businesses. “We are delighted to support Galp in its decarbonisation pathway and join forces to promote climate action and renewable energy generation in both Spain and Portugal. These three projects contribute to the goals set out in the EU’s Green Deal and will support the countries’ decarbonisation targets, while boosting economic growth, job creation and social cohesion,” said EIB Vice-President, <a href="https://www.eib.org/en/about/governance-and-structure/statutory-bodies/management-committee/members/ricardo-mourinho-felix.htm" target="_blank">Ricardo Mourinho Félix</a>. “Building back better, greener and fairer is not only a slogan but an imperative. There's no vaccine to prevent climate crisis. The only way forward is to promote green and sustainable investments and ensure a just transition for all. The EIB is 100% committed to this objective; climate action and just transition is in our DNA.” “Galp’s commitment to become a carbon neutral company pushes us to be bold in the actions we take today while making sure we thrive through the energy transition” said Galp’s CEO <a href="https://www.galp.com/corp/en/corporate-governance/governing-model-and-bodies/executive-committee">Andy Brown</a>. “Our plan to reshape our portfolio is already underway, with Galp accelerating the integration of low-to-no carbon energy solutions in our businesses. The support from EIB is key to help us increase the pace of such projects’ development” he added. EIB loan of €325 million to finance Galp’s photovoltaic project consisting of a c. 2 GWp portfolio of solar photovoltaic plants in Spain The largest agreement announced today consists of an EIB green energy loan of up to €325 million, to finance the construction of a large number of utility-scale solar photovoltaic plants in Spain being developed by Galp and expected to start construction over the next three years, including the ancillary infrastructure for interconnection to the grid. The portfolio of schemes includes utility-scale solar photovoltaic plants with a total capacity of about 2 GWp, equivalent to the annual energy consumption of 866 400 households. A further amount of €325 million could also be signed in Project Finance format at a later stage, which means that the overall EIB financing for this project could amount to €650 million. With sizes ranging from 24 MWp to 449 MWp, the photovoltaic plants will be located across Spain’s cohesion regions (Andalusia, Aragon, Castilla la Mancha and Extremadura). The EIB financing will promote the security of energy supply, the fight against climate change, job creation and social cohesion while contributing to the Spanish renewable energy objectives established in the National Integrated Energy and Climate Plans (PNE). EIB loan of €40 million to finance Galp’s photovoltaic project consisting of a c. 144 MWp solar photovoltaic plants in the Algarve region, Portugal As a result of the second agreement, the EIB will grant a €40 million green energy loan for Galp to build and operate four interconnected solar photovoltaic power plants with a total capacity of 144 MWp in Algarve (south of Portugal), in the municipality of Alcoutim (Viçoso 48.0 MWp; Pereiro 18.7 MWp; São Marcos 48.9 MWp; and Albercas 28.4 MWp). Once operational, the four photovoltaic plants are expected to generate on average 230 GWh of renewable energy per year, equivalent to the annual energy consumption of 72 800 households. The agreement contributes to the European Commission’s binding target of having at least 32% of final energy consumption from renewable sources by 2030. It will also help Portugal to meet its Energy and Climate Plan targets, which foresee 47% of renewable sources in gross final energy consumption by 2030. Galp’s total gross renewable generation operational and development pipeline totals 4.7 GW spread through Portugal, Spain and recently Brazil, of which 926 MW are already operating. The Company has the ambition to have globally over 4 GW and 12 GW gross operating capacity by 2025 and 2030, respectively. EIB loan of €41.5 million to promote Galp’s electric mobility project that consists of the deployment of EV charging stations in Spain & Portugal The road sector accounts for three-quarters of all transport emissions in the European Union and it will not be possible to reach the EU target of carbon neutrality by 2050 without a fundamental shift to electro-mobility in the road sector. To contribute to the EU goal of deploying 1 million recharging and refuelling stations on European roads by 2025, the EIB will provide Galp with €41.5 million to support the deployment of an EV charging network across Spain and Portugal. The project foresees the rollout of 5,500 charging points by 2025, 55% of which will be deployed in less developed and transition cohesion regions across Iberia. The agreement is also expected to contribute to developing the electric vehicle charging infrastructure market, improving technology performance, reducing initial equipment costs, and mobilising investments in electric vehicle industries, thus contributing to more efficient and affordable vehicles. In line with the EIB's Transport Lending Policy, the project is supported by the Cleaner Transport Facility (CTF) and benefits from the Connecting Europe Facility Debt Instrument, a financial instrument that supports the objectives of the CTF. Galp’s has the intention to expand its offering of charging points to 10,000 electric vehicles charging points by 2025 in Iberia.

Galp enters the Brazilian renewables business with the acquisition of 594 MWp solar capacity - G Galp agreed to acquire and develop solar projects in Brazil with a combined capacity of 594 MWp, moving forward with its renewable expansion ambitions and taking an important leap in its drive to reshape its portfolio and lower its carbon footprint. The acquisition comprises two solar projects under development in the Bahia and Rio Grande do Norte States, with capacities of 282 MWp and 312 MWp, respectively. With these transactions, Galp gains access to high-quality assets in a country where the Company is present for more than 20 years and which is within the top 10 countries in the world with the highest power demand and aiming to double its current solar & wind installed capacity to 40 GW by 2030. The projects are set to reach its Commercial Operation Date before 2025. These agreements are part of Galp’s strategy to grow a competitive renewable generation portfolio and to thrive through the energy transition and are fully aligned with the capital allocation guidelines and geography diversification plans presented at its June Capital Markets Day. With this portfolio addition, Galp’s total gross renewable generation capacity increases to c.4.7 GW spread through Portugal, Spain and now Brazil, another step forward towards the Company’s ambition to have over 4 GW and 12 GW gross operating capacity by 2025 and 2030, respectively.

Galp signs Manifesto to speed-up Green Hydrogen deployment and expansion in Europe - <ul> <li>Parties define 12 actions that national and European decision-makers should take to accelerate the development of Green Hydrogen in Europe</li> <li>Manifesto is supported by more than 80 companies involved in renewable hydrogen projects throughout the continent</li> <li>Galp is studying the development of a large green energy park in Sines that has production of hydrogen from renewable sources as its centerpiece</li> </ul> Galp yesterday became one of the more than 80 signatories of the Green Hydrogen Manifesto, which defines a set of 12 actions that national and European policymakers should take for Europe to remain at the forefront of hydrogen production projects powered by renewable energy sources. The Manifesto was announced at Smarter E Europe 2021's Green Hydrogen Forum, which closes this Friday in Munich. Its promoters are Hydrogen Europe, the German Hydrogen Association (DWV), The Smarter E, and the European Fuel Cell and Electrolyser Forum (EFCF). The measures advocated by the signatories include the definition of rules to evaluate and compare the various types of hydrogen according to their CO2 emissions or their geographical origin, sustainability criteria, and certification. The manifesto calls for measures to reduce costs for final consumers and to promote investments in industrial equipment conversion. The takeoff of green hydrogen also requires the adoption of specific market regulations, balanced ways to define market prices, and support for the creation of national distribution networks, among other measures.  Galp aims to build a green energy park capable of attracting industries whose competitiveness depends on access to clean and diversified energy sources, benefiting from the abundance of renewable energy sources in Portugal, namely wind and photovoltaic energy. The centerpiece of this project is the gradual installation of electrolysis capacity over the next few years at its Sines site, which should reach 100 MW in 2025 and between 600 MW and 1 GW in 2030. Green hydrogen is key to the decarbonization of the refining process, industrial processed and heavy-duty road transport, but also to feed new production chains for synthetic clean aviation and marine fuels. <a href="https://www.thesmartere.de/media/doc/615ae682045d375ff42c0a12" target="_blank">Read the original Manifesto here</a>.

Galp reinforces electric mobility leadership in Portugal through the acquisition of Mobiletric - <ul> <li>Transaction to expand Galp's electric charging network by 280 points in the short term</li> <li>Galp strengthens its ambition to have 10,000 charging points in operation in the Iberian Peninsula by the end of 2025</li> </ul>

Galp maintains top distinction in the MSCI ESG Ratings sustainability index - For the 4th consecutive year, Galp was rated by MSCI ESG Ratings a triple-A (AAA) global leadership position in the integrated Oil & Gas sector, maintaining its position amongst the top 3 companies with the best environmental, social and governance (ESG) performances. This is the highest score from Morgan Stanley Capital International (MSCI) ratings. Galp reinforces its position as a leader in the capacity of managing sector specific ESG risks, with special emphasis on the Biodiversity & Land Use, Carbon Emissions and Community Relations criteria. As an efficient and competitive integrated energy operator that develops profitable and sustainable businesses in an ethical and responsible manner, Galp is strongly committed to the best ESG practices and to create sustainable value for all its stakeholders. MSCI ESG Rating is designed to measure a company’s resilience to long-term industry material ESG risks. MSCI ESG Ratings range from leader (AAA, AA), average (A, BBB, BB) to laggard (B, CCC).

Second-quarter and first-half 2021 results - Galp today presented its 2Q21 and 1H21 results.

Galp is the first Portuguese company to join the World Economic Forum's ESG metrics - <ul> <li>Galp joins the World Economic Forum business community aligned with the creation of sustainable value through a set of ESG metrics</li> <li>World Economic Forum's ESG metrics promote the “stakeholder capitalism” through con-cise, consistent and comparable information, in order to create value shared by all stake-holders and put the economy at the service of communities</li> </ul>

Final investment decision for Bacalhau phase 1 in Brazil - Equinor (operator) and ExxonMobil, Petrogal Brasil and Pré-sal Petróleo SA (PPSA) have decided to develop phase one of the Bacalhau field in the Brazilian pre-salt Santos area. The investment is approximately 8 billion USD.

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