Galp Energia’s 3rd quarter 2011 results and strategy execution update

Galp Energia releases today the 3rd quarter 2011 results and the strategy execution update, with the following highlights:

• Net profit in 3Q11 reached €61 Mln, 34% down yoy;
• Sines refinery steady production post-upgrade in 2Q12;
• Lula/Cernambi development ahead of expectations;
• Drilling activity focused on high potential projects;
• Ensuring a solid and trustable capital structure.

SUMMARY OF RESULTS – NINE MONTHS AND THIRD QUARTER OF 2011

In the first nine months of 2011, Galp Energia’s replacement cost adjusted net profit of €172 million was €94 million lower than a year earlier as the Refining & Marketing business segment underperformed. Net profit of €61 million in the third quarter 2011 was €32 million lower than a year earlier.

• Net entitlement production of crude oil in the first nine months of 2011 amounted to 11.9 kbopd, of which 26% came from Brazil; in the third quarter, net entitlement production rose 28% yoy;
• Galp Energia achieved a refining margin of Usd 0.8/bbl in the first nine months of 2011; in the third quarter of the year, the refining margin was Usd 0.9/bbl, which negatively reflected softer margins in international markets;
• Although the marketing of oil products was negatively affected by the adverse economic environment in the Iberian Peninsula, volumes sold of oil products stabilised in the third quarter of 2011;
• Natural gas volumes sold rose 10% yoy in the first nine months to 3,951 million cubic metres, driven by Madrileña Gas sales and increase in trading volumes; in the third quarter of 2011, volumes sold fell 11% mainly due to the decrease of electrical segment volumes;
• RCA EBIT fell 27% yoy in the first nine months of 2011 to €285 million; in the third quarter of 2011, RCA EBIT fell 19% yoy to €111 million;
• RCA net profit of €172 million in the first nine months of 2011 equated to €0.21 per share, 35% of which was achieved in the third quarter of 2011;
• In the first nine months of 2011, around 53% of total capital expenditure of €808 million was channelled into the refinery upgrade project.

To read the complete version of the report and presentation click here.

Source: Galp Energia, SGPS, S.A.

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