Galp Energia’s 2nd quarter 2011 results and strategy execution update

Galp Energia releases today the 2nd quarter 2011 results and the strategy execution update, with the following highlights:

• EBIT growth QoQ driven by higher contribution from oil marketing;
• Net profit in 2Q11 reached €70 Mln, up 68% QoQ;
• Upgrade project at Matosinhos refinery onstream since the end of June;
• Brazilian production positively impacted by the first gas injection well connected to the FPSO Cidade de Angra dos Reis;
• Exceptional progress in Brazil drives new production target to 300 kboepd in 2020. 

SUMMARY OF RESULTS – SECOND QUARTER AND FIRST HALF 2011

In the first half of 2011, Galp Energia’s replacement cost adjusted net profit fell 36% year on year (yoy) to €111 million due to the worse performance of the Refining & Marketing business segment. Net profit of €70 million in the second quarter 2011 reflected the same downward trend when compared to a year earlier.

• Net entitlement production of crude oil in the first half of 2011 reached 11.7 kbopd with the positive contribution of Lula’s field production; in the second quarter, net entitlement production rose 26% yoy;
• Galp Energia achieved a refining margin of Usd 0.8/bbl in the first half of 2011; in the second quarter of the year, this margin was Usd 0.6/bbl reflecting the downward trend in refining margins in international markets;
• The marketing of oil products was negatively affected by the adverse economic environment in the Iberian Peninsula;
• Natural gas sold rose 22% yoy in the first half of 2011 to 2,792 million cubic metres, driven by sales to Madrileña Gas and to the electrical segment; in the second quarter of 2011, volumes sold rose 7% on the back of higher demand from the industrial segment;
• RCA EBITDA in the first half of 2011 fell 20% yoy to €365 million; in the second quarter, it amounted to €230 million;
• RCA net profit of €111 million in the first half of 2011 equated to €0.13 per share, 63% of which was achieved in the second quarter;
• In the first half of 2011, around 60% of total capital expenditure of €590 million was channelled into the refinery upgrade project.

To read the complete version of the report and presentation go to: Results and presentation

Source: Galp Energia, SGPS, S.A.