Q2 profits at GALP soar on higher Brent prices
GALP posted a second quarter net income of €265mn ($271.5mn), up from €140mn yr/yr, on the back of higher Brent prices and successful hedging bets at its refineries, the company announced July 25.
Higher adjusted net profits at the Portuguese energy group compensated for a marginal drop in net entitlements from GALP's African and Latin American upstream operations. GALP's portfolio mostly produces crude oil, with gas accounting for a 11.4% output share. In the first six months of 2022, the assets yielded 12,700 of oil equivalent/day of natural gas, down from 13,300 boe/d in 1H 2021. Crude output slipped by around 600 b/d to 111,200 b/d, GALP said.
Despite the production declines, adjusted core earnings at Galp's upstream division increased by 88% to €878mn, underscoring the strength of higher crude prices. Second quarter Brent price averages rose by $45/barrel yr/yr, reaching $113.9/barrel during the reporting period.
Real gas sales indicators at GALP also increased, hitting $51.9/boe compared to $43.6/boe in the first quarter. GALP currently produces oil and gas from Angola and Brazil. It also has a stake in Mozambique Rovuma Venture's Area 4 exploration concession – with an estimated in-place gas potential of 85 trillion ft3 - as well as licences offshore Namibia and the central African islands Sao Tome and Principe.