GALP profits “almost double” to €881 million in 2022

Figure represents year-on-year rise of 66%

Portugal’s largest oil company, GALP, recorded profits of €881 million in 2022 – almost double what it made in the previous year, according to a statement published today by the Portuguese Securities Market Commission (CMVM).

The figure compares with the €457 million GALP that recorded in 2021.

The oil company achieved EBITDA (earnings before interest, tax, depreciation and amortisation) of €3.85 billion last year, which corresponds to a year-on-year rise of 66%, the statement said.

Net capex totalled €126 billion and was “mainly applied in upstream projects, such as the Bacalhau, Tupi and Iracema projects in Brazil, and with the expansion of the renewables portfolio, including the acquisition of a stake in Titan Solar,” the statement said.

The company also achieved an adjusted operating cash flow (OCF) of €2.79 billion – 50% higher than in 2021.

As for the fourth quarter of last year, GALP highlighted its “robust operating performance”, with an adjusted EBITDA of €951 million – a 48% growth year-on-year.

In the same period, the company posted adjusted results of €273 million, which benefited from “positive financial results” related to Brent and other factors, including refining margins and the evolution of the gas price differential in the Iberian Peninsula, it indicated.

In the last quarter of last year, GALP’s upstream adjusted EBITDA was €791 million, having grown 33% year-on-year, “supported by an improved operating performance and by the favourable environment in oil prices”, GALP said.

In renewables and new businesses, GALP obtained an adjusted EBITDA of €17 million, with an installed capacity in renewables reaching 1.4 GW (gigawatts).

In the industrial and midstream segment, adjusted EBITDA was €118 million, supported by the contribution of industrial activities and benefiting from the improved context of international refining, the company said.

Finally, in the commercial area, the adjusted EBITDA was €42 million.

For the full year 2022, net debt reached €1.55 billion, having decreased by €802 million compared to that recorded at the end of 2021.

The group has set up a €60 million provision for transformation of the site of the former Matosinhos refinery, the statement added, while the company has also set aside €53 million related to so-called “windfall taxes” in Portugal and Spain, it said.