The information below aims to provide the key macroeconomic, operational and trading conditions experienced by Galp during the third quarter of 2022. All data referred to below is currently provisional and may differ from the final figures which will be reported on October 24, 2022.
Galp’s 3Q22 results will be published on October 24, before the opening of Euronext Lisbon, together with a management presentation. On that day, the Company will hold an analysts’ conference call at 14:00 (Lisbon/London time). Further details can be found at the end of this release.
Consolidated earnings and financial position
- Robust operational cash flow (OCF) generation and a working capital release, which includes the reduction in margin account balances (natural gas hedging positions roll-off, as expected).
- Net debt expected to be reduced to c.€2.1 bn at the end of quarter, despite the stake acquisition and consolidation of Titan, distributions to shareholders and to minority partners.
Upstream
| |
|
| |
3Q21 |
2Q22 |
3Q22 |
Var. YoY |
Var. QoQ |
| Working interest production (kboepd) |
128.2 |
119.6 |
127.6 |
(0%) |
7% |
| Oil production (kbpd) |
117.5 |
107.7 |
114.8 |
(2%) |
7% |
| Net entitlement production (kboepd) |
126.6 |
118.1 |
126.0 |
(0%) |
7% |
| Angola (kbpd) |
10.9 |
10.1 |
10.3 |
(5%) |
2% |
| Brazil (kboepd) |
115.7 |
108.0 |
115.7 |
0% |
7% |
- Working interest production higher QoQ, reflecting reduced planned maintenance and higher efficiency across the units.
- The quarter ended with a higher number of cargoes in transit when compared to end of 2Q22. Also, as previously highlighted, oil hedges covered 1.6 mbbl during 3Q22 (13% of production).
- 3Q22 financial statements to include the impacts from the unitisation agreement related with Berbigão / Sururu, in BM-S-11A Brazil (c.-€140 m in RCA Ebitda). Net equalisation payable position is estimated at c.€40 m, as of September 30, 2022.
- 3Q22 RCA Ebit to include an impairment of c.€30 m related with the exploration well in São Tomé and Principe (no evidence of a commercial discovery).
Commercial
| |
|
| |
3Q21 |
2Q22 |
3Q22 |
Var. YoY |
Var. QoQ |
| Oil products - client sales (mton) |
1.8 |
1.9 |
2.0 |
12% |
6% |
| Natural gas sales - client sales (GWh) |
4,363 |
5,006 |
4,180 |
(4%) |
(16%) |
| Electricity - client sales (GWh) |
1,086 |
1,088 |
979 |
(10%) |
(10%) |
- Oil products B2C salessupported by seasonality, whilst volumes in B2B continue to be driven by a recovery in marine and aviation sectors.
- Natural gas and electricity sales starting to be impacted by activity reduction, especially in B2B segments.
Industrial & Energy Management
| |
|
| |
3Q21 |
2Q22 |
3Q22 |
Var. YoY |
Var. QoQ |
| Raw materials processed (mboe) |
22.5 |
22.9 |
22.9 |
1% |
(0%) |
| Galp refining margin (USD/boe) |
4.0 |
22.3 |
7.7 |
92% |
(65%) |
| Oil products supply1 (mton) |
3.9 |
4.1 |
4.3 |
12% |
7% |
| NG/LNG supply & trading volumes1 (TWh) |
16.6 |
14.0 |
12.9 |
(22%) |
(8%) |
| Trading (TWh) |
7.5 |
6.0 |
5.4 |
(28%) |
(9%) |
| Sales of electricity from cogeneration (GWh) |
261 |
174 |
177 |
(32%) |
1% |
1 Includes volumes sold to the Commercial segment.
- Refining margin lower QoQ, with lower gasoline cracks. Galp refining margin from 3Q22 calculated with natural gas costs valued at Iberian spot market conditions.
- Refining margin hedges covered 5.6 mboe during 3Q22 (24% of throughput), with an expected impact of c.€70 m at the Ebitda level.
- All 2022 costs with the Matosinhos’ site transformation project to be booked as recurring (mostly provisions, with c.€95 m in RCA Ebit).
- NG/LNG supply & trading still impacted by sourcing restrictions.
Renewables & New Businesses
| |
|
| |
3Q21 |
2Q22 |
3Q22 |
Var. YoY |
Var. QoQ |
| Renewable installed capacity1 (MW) |
|
|
|
|
|
| Gross (100%) |
927 |
1,162 |
1,268 |
37% |
9% |
| Equity to Galp |
692 |
875 |
1,268 |
83% |
45% |
| Renewable generation (GWh) |
|
|
|
|
|
| Gross (100%) |
408 |
687 |
693 |
70% |
1% |
| Equity to Galp |
304 |
515 |
627 |
n.m. |
22% |
| Galp average solar generation sale price (EUR/MWh) |
111 |
152 |
126 |
14% |
(17%) |
1 Capacity installed by the end of the period.
- Commercial start-up of 106 MW on Galp’s first solar generation project in Portugal.
- Gross renewable energy generation in line QoQ, as the contribution from the new solar capacity installed later in 3Q22 was offset by lower irradiation. Generation equity to Galp benefiting from the consolidation of 100% of Titan from August onwards, following the transaction announced on July 21, 2022 (see here).
Market Indicators
| |
|
| |
3Q21 |
2Q22 |
3Q22 |
Var. YoY |
Var. QoQ |
| Exchange rate (EUR/USD) |
1.18 |
1.06 |
1.01 |
(15%) |
(5%) |
| Dated Brent price (USD/bbl) |
73.4 |
113.9 |
100.8 |
37% |
(11%) |
| Japan/Korea Marker LNG price (EUR/MWh) |
53.9 |
86.6 |
152.3 |
n.m. |
76% |
| Dutch TTF natural gas price (EUR/MWh) |
47.4 |
95.6 |
196.2 |
n.m. |
n.m. |
| Iberian MIBGAS natural gas price (EUR/MWh) |
48.7 |
87.1 |
138.5 |
n.m. |
59% |
| Iberian power baseload price1 (EUR/MWh) |
117.8 |
182.8 |
146.3 |
24% |
(20%) |
Source: Platts/MIBGAS/Bloomberg/OMIE/REE.
1 The Iberian power price is based on the Spanish power pool price published by the Iberian Energy Market Operator (OMIE)