The information below aims to provide the key macroeconomic, operational and trading conditions experienced by Galp during the third quarter of 2021.
All data referred to below is currently provisional and may differ from the final figures which will be reported on October 25, 2021.
The Company will hold a conference call and webcast on October 25, at 11:30 a.m. (Lisbon/London time). Further details can be found at the end of the Trading Update document.
Upstream
| |
|
| |
3Q20 |
2Q21 |
3Q21 |
Var. YoY |
Var. QoQ |
| Working interest production (kboepd) |
133.8 |
128.4 |
128.2 |
(4%) |
(0%) |
| Oil production (kbpd) |
120.0 |
114.9 |
117.5 |
(2%) |
2% |
| Net entitlement production (kboepd) |
132.0 |
126.6 |
126.6 |
(4%) |
(0%) |
| Angola (kbpd) |
11.8 |
11.6 |
10.9 |
(8%) |
(6%) |
| Brazil (kboepd) |
120.2 |
115.0 |
115.7 |
(4%) |
1% |
- Increased oil production during the quarter, with the Group's working interest production stable QoQ as maintenance activities impacted natural gas exports in Brazil.
- Start of production of the Sépia field, offshore Brazil, through FPSO Carioca by the end of August.
- Oil and gas realisations still reflecting higher crude discounts to Brent, mostly related with market dynamics in Asia, and limited upside from associated gas pricing.
Commercial
| |
|
| |
3Q20 |
2Q21 |
3Q21 |
Var. YoY |
Var. QoQ |
| Oil products - client sales (mton) |
1.5 |
1.5 |
1.8 |
15% |
16% |
| Natural gas sales - client sales (TWh) |
5.3 |
4.5 |
4.4 |
(18%) |
(2%) |
| Electricity - client sales (GWh) |
871 |
1,020 |
1,086 |
25% |
7% |
- Oil products volumes benefiting from the summer driving season and reflecting the gradual recovery in Iberia.
- Natural gas sales mostly following seasonality, with Galp not benefiting from the spike in gas prices.
Industrial & Energy Management
| |
|
| |
3Q20 |
2Q21 |
3Q21 |
Var. YoY |
Var. QoQ |
| Raw materials processed (mboe) |
23.4 |
21.0 |
22.5 |
(4%) |
7% |
| Galp refining margin (USD/boe) |
(0.7) |
2.4 |
4.0 |
n.m. |
71% |
| Oil products supply1 (mton) |
3.6 |
3.6 |
3.9 |
8% |
6% |
| NG/LNG supply & trading volumes1 (TWh) |
15.8 |
18.1 |
16.6 |
5% |
(9%) |
| Trading (TWh) |
3.6 |
9.1 |
7.5 |
n.m. |
(18%) |
| Sales of electricity from cogeneration (GWh) |
340 |
269 |
261 |
(23%) |
(3%) |
1 Includes volumes sold to the Commercial segment.
Note: Following Galp’s decision to discontinue refining activities in Matosinhos, 2021 refining indicators only reflect Sines refinery operations.
- Refining margins recovering in the international markets, namely driven by stronger middle distillates cracks.
- Energy Management performance to reflect NG/LNG sourcing restrictions and lower supply & trading volumes.
- Most of the natural gas sourced by Galp is acquired on a Brent-indexed basis, a significant proportion of which is sold to clients on a TTF index basis. The gains from the recent sharp increase in TTF are neutralised by derivatives set to cover TTF vs Brent spread risk. Some of the derivatives require margin deposits (exchange-traded TTF futures), which temporarily affect Galp’s cash position and which are mostly released as TTF prices adjust downwards and/or gas is delivered to clients throughout 2022.
Renewables & New Businesses
| |
|
| |
3Q20 |
2Q21 |
3Q21 |
Var. YoY |
Var. QoQ |
| Renewable installed capacity (MW) |
|
|
|
|
|
| Gross (100%) |
927 |
927 |
927 |
- |
- |
| Equity to Galp |
692 |
692 |
692 |
- |
- |
| Renewable generation (GWh) |
|
|
|
|
|
| Gross (100%) |
143 |
475 |
408 |
n.m. |
(14%) |
| Equity to Galp |
106 |
355 |
304 |
n.m. |
(14%) |
- Renewable energy generation reflecting seasonality, although c.200 MW capacity continues to be constrained by an upset in one transformer.
Market Indicators
| |
|
| |
3Q20 |
2Q21 |
3Q21 |
Var. YoY |
Var. QoQ |
| Exchange rate (EUR/USD) |
1.17 |
1.21 |
1.18 |
1% |
(2%) |
| Dated Brent price (USD/bbl) |
42.9 |
69.0 |
73.4 |
71% |
6% |
| Japan/Korea Marker LNG price (USD/mbtu) |
3.6 |
10.1 |
18.2 |
n.m. |
81% |
| Dutch TTF natural gas price (EUR/MWh) |
8.2 |
24.8 |
47.4 |
n.m. |
91% |
| Iberian MIBGAS natural gas price (EUR/MWh) |
9.0 |
25.0 |
48.7 |
n.m. |
95% |
| Iberian power baseload price (EUR/MWh) |
37.5 |
71.8 |
117.8 |
n.m. |
64% |
| Iberian solar market price (EUR/MWh) |
37.5 |
69.2 |
110.9 |
n.m. |
60% |
Source: Platts/MIBGAS/Bloomberg/OMIE/REE.