Galp’s capital allocation framework relies on a solid financial position, with the Company targeting to keep a net debt to Ebitda ratio of c.1.x.
Galp will continue to prioritise its capital light investment programme, with net capex to average below €0.8 bn p.a. for the 2025-26 period, which is critical to the success of the strategic execution.
The shareholder’s remuneration framework considers a progressive base cash dividend, growing at 4% per year. This base dividend is expected to be paid semi-annually, with the first tranche paid by the end of August and the remaining amount paid after approval at the AGM. The base dividend related to 2024 is expected to be €0.62/sh, growing 15% YoY given the Board of Directors increased visibility on upcoming project execution and the low capital intensity plan.
Additional supplementary distributions are to be made made through buybacks, whenever Galp’s Net Debt to RCA Ebitda remains below the Company’s target of 1x. Total distributions to shareholders (cash dividend + buyback) are limited at 1/3 of the adjusted operational cash flows (OCF). Considering the expected deleveraging of the Company, Galp plans to distribute 1/3 of the OCF generated in each year.
Related to 2024, a supplementary distribution of €250 m was decided to be executed through a buyback, which started in February 2025.
Note: total distributions are now linked to OCF instead of CFFO, which excludes the variations related with working capital, inventory effects and other special items (OCF = RCA Ebitda + dividends received from associates – taxes paid).