Strong output from its Brazilian fields, combined with rising oil prices fueled by Middle East conflicts, have jointly boosted the company's earnings.
Galp Energia reported a 23% year-over-year increase in quarterly production.
Portuguese oil and gas giant Galp Energia released its first-quarter financial results, showing that growth in hydrocarbon production coupled with soaring energy prices drove a substantial rise in its key profitability indicator.
The Portuguese oil and gas producer announced on Monday that its adjusted net profit on a replacement cost basis—a metric aligned with the common profit reporting standard used by U.S. oil and gas firms—surged 41% year-over-year to 272 million euros (approximately $318.8 million). This figure came in slightly below the analyst consensus estimate of 277 million euros provided by the company.
Reported net profit for the period showed a significant decline, recording a loss of 111 million euros, primarily due to nearly 400 million euros in impairment charges related to unsettled financial derivatives.
Benefiting from high production in its Brazilian operations and a spike in oil prices triggered by conflict in the Middle East, the adjusted profit from Galp's core upstream exploration and production segment jumped nearly 80%, reaching 685 million euros. Total quarterly oil and gas production increased by 23% compared to the same period last year.
Galp stated that it remains in discussions with shareholders of energy company Moeve regarding a potential merger of downstream operations, and the two parties still expect to reach a final agreement by mid-year.
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