GALP reports a 25% increase in second quarter profits

Galp reported adjusted net income of €373 million in the second quarter of 2025, a 25% increase compared to the same period last year. The result was driven by increased oil and natural gas production in Brazil, as well as the performance of its sales division in international markets. Adjusted EBITDA at replacement cost (RCA) — which excludes the effects of interest, taxes, depreciation, and amortization — reached €840 million, close to the €849 million recorded in the second quarter of 2024.

According to the company, the improved results across all segments offset the decline in oil prices, which impacted the financial performance of the Upstream division, traditionally responsible for a significant portion of the company’s cash generation.

Galp’s investments between April and June totaled €190 million. Of this amount, approximately €74 million were allocated to the city of Sines, Portugal, where construction is underway on a 100 MW electrolyzer for low-carbon hydrogen production (one of the largest in Europe) and a new plant for the production of renewable fuels (HVO/SAF), with an estimated start-up date of 2026.

Projects such as the modernization of fueling stations, the expansion of the electric vehicle charging network, and clean energy initiatives accounted for approximately €30 million in investments. The main destination of resources in the quarter was Brazil, which received €81 million for exploration and production projects. Considering the first six months of the year, investments total €484 million.

With the results achieved in the second quarter, Galp adjusted its financial and operational projections for the remainder of the year upwards, despite the weaker dollar. EBITDA is now expected to exceed €2.7 billion—a higher figure than the previous estimate of €2.5 billion. The revision was driven primarily by the start of liquefied natural gas (LNG) deliveries contracted with the US-based Venture Global LNG, which reinforces the positive outlook for the commercialization business in the coming quarters.

Operating cash flow was also revised and is expected to exceed €1.8 billion, compared to the previous projection of €1.6 billion. In terms of production, Galp expects to reach an average of 105,000 to 110,000 barrels of oil and natural gas per day in 2025, exceeding the initial forecast of 105,000 barrels per day.