The information below aims to provide the key macroeconomic, operational and trading conditions experienced by Galp during the first quarter of 2022.
All data referred to below is currently provisional and may differ from the final figures which will be reported on May 3, 2022.
Galp’s 1Q22 results, will be published on May 3, before the opening of Euronext Lisbon. On that day, the Company will hold a conference call and webcast at 11:30 a.m. (Lisbon/London time). Further details can be found at the end of the Trading Update document.
Financial Position
- The expected robust Adjusted Operational Cash Flow (OCF) in 1Q22 should be partially offset by a working capital build, reflecting the higher commodities prices and temporary effects from increased margin account balances from hedging positions to cover TTF vs Brent spread risks.
- Galp’s net debt is estimated to remain in line with year-end 2021, with net debt to RCA Ebitda expected to stand at <1x.
Upstream
| |
|
| |
1Q21 |
4Q21 |
1Q22 |
Var. YoY |
Var. QoQ |
| Working interest production (kboepd) |
125.2 |
124.8 |
131.1 |
5% |
5% |
| Oil production (kbpd) |
112.2 |
111.2 |
117.5 |
5% |
6% |
| Net entitlement production (kboepd) |
123.5 |
123.0 |
129.5 |
5% |
5% |
| Angola (kbpd) |
11.3 |
10.7 |
10.3 |
(9%) |
(3%) |
| Brazil (kboepd) |
112.2 |
112.3 |
119.2 |
6% |
6% |
- Working interest production up QoQ, reflecting lower concentration of planned maintenance activities.
- Non-cash impairments of c.€120 m related with exploration and appraisal assets in Brazil, with no impact on the 2022-25 business plan production.
Commercial
| |
|
| |
1Q21 |
4Q21 |
1Q22 |
Var. YoY |
Var. QoQ |
| Oil products - client sales (mton) |
1.3 |
1.8 |
1.7 |
25% |
(10%) |
| Natural gas sales - client sales (TWh) |
4.9 |
4.5 |
5.6 |
13% |
24% |
| Electricity - client sales (GWh) |
950 |
1,121 |
1,139 |
20% |
2% |
- Oil products sales reflecting lower B2C and B2B volumes QoQ, following seasonality and higher commodity price environment.
- Natural gas and electricity sales evolution QoQ mostly following seasonality.
Industrial & Energy Management
| |
|
| |
1Q21 |
4Q21 |
1Q22 |
Var. YoY |
Var. QoQ |
| Raw materials processed (mboe) |
19.7 |
13.6 |
21.8 |
10% |
61% |
| Galp refining margin (USD/boe) |
1.9 |
5.5 |
6.8 |
n.m. |
22% |
| Oil products supply1 (mton) |
3.6 |
3.7 |
3.9 |
9% |
5% |
| NG/LNG supply & trading volumes1 (TWh) |
18.3 |
14.3 |
14.8 |
(19%) |
3% |
| Trading (TWh) |
8.3 |
6.6 |
6.1 |
(26%) |
(8%) |
| Sales of electricity from cogeneration (GWh) |
331 |
119 |
113 |
(66%) |
(5%) |
1 Includes volumes sold to the Commercial segment.
- Refining raw materials processed increased QoQ, as the system operated under normal conditions, capturing the favourable refining margins during the period.
- NG/LNG supply & trading volumes limited by the European and Iberian gas environment conditions.
Renewables & New Businesses
| |
|
| |
1Q21 |
4Q21 |
1Q22 |
Var. YoY |
Var. QoQ |
| Renewable installed capacity1 (MW) |
|
|
|
|
|
| Gross (100%) |
927 |
963 |
1,012 |
9% |
5% |
| Equity to Galp |
692 |
719 |
756 |
9% |
5% |
| Renewable generation (GWh) |
|
|
|
|
|
| Gross (100%) |
191 |
213 |
243 |
27% |
14% |
| Equity to Galp |
141 |
157 |
180 |
27% |
14% |
1 Capacity installed by the end of the period.
- Renewable energy generation higher QoQ reflecting higher irradiation and plants’ availability, as well as 50 MW of new operating solar capacity brought online in Spain in early March (Titan joint venture with ACS).
Market Indicators
| |
|
| |
1Q21 |
4Q21 |
1Q22 |
Var. YoY |
Var. QoQ |
| Exchange rate (EUR/USD) |
1.20 |
1.14 |
1.12 |
(7%) |
(2%) |
| Dated Brent price (USD/bbl) |
61.1 |
79.8 |
102.2 |
67% |
28% |
| Japan/Korea Marker LNG price (EUR/MWh) |
28.1 |
104.9 |
95.3 |
n.m. |
(9%) |
| Dutch TTF natural gas price (EUR/MWh) |
18.5 |
93.7 |
98.4 |
n.m. |
5% |
| Iberian MIBGAS natural gas price (EUR/MWh) |
20.5 |
94.2 |
96.9 |
n.m. |
3% |
| Iberian power baseload price1 (EUR/MWh) |
45.2 |
211.1 |
229.0 |
n.m. |
9% |
Source: Platts/MIBGAS/Bloomberg/OMIE/REE.