Portugal’s Galp posts record profit in 2022 on soaring oil prices, wider refining margins

(Reuters) – Portuguese oil and gas company Galp Energia (GALP.LS) on Monday reported a record adjusted net profit for 2022, due to soaring oil prices and wider refining margins in the fourth quarter.

Galp said its adjusted profit almost doubled to 881 million euros ($940.03 million), surpassing the previous record of 707 million euros set in 2018.

Its fourth-quarter bottom line more than doubled to 273 million euros, compared with 130 million euros a year earlier.

The average forecast of 20 analysts polled by the company was 225 million euros.

The adjustments reflect changes in the company’s crude stocks.

Galp’s main activity is upstream in the rich ‘off shore’ of Brazil and the company also runs renewable energy plants.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 48% to 951 million euros in the fourth quarter, in line with the average forecast. Adjusted EBITDA for the full year rose 66% to 3.85 billion euros.

The company’s upstream adjusted EBITDA rose 33% to 791 million euros, reflecting an 11% rise in Brent crude prices < LCOc1> to $88.9 in the quarter, while its share of oil and gas production from projects in which it has a stake, mainly in Brazil, rose 4% to 115,300 barrels of oil equivalent per day.

The company said its refining margin rose to $13.5 a barrel in the quarter, up from $5.5 in the same period last year.

Separately, Galp said it had signed an agreement to sell its upstream assets in Angola to SOMOIL, with the proceeds expected to reach $830 million, already net of capital gain taxes. Of this, $175 million is in contingent payments due in 2024 and 2025 dependent on Brent crude prices.

($1 = 0.9372 euros)

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