The information below aims to provide the key macroeconomic, operational and trading conditions experienced by Galp during the fourth quarter of 2022. All data referred to below is currently provisional and may differ from the final figures which will be reported on February 13, 2022.
Galp’s 4Q22 results will be published on February 13, 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 the attached release.
Consolidated earnings and financial position
- Expecting a robust operational cash flow (OCF) generation and working capital release, which includes the unwind of all gas derivatives margin account balances, as expected.
- Net debt expected to be reduced to c.€1.6 bn at the end of quarter.
- Still assessing the impact from windfall taxes in Portugal and Spain. Any estimated impacts to be booked as special items.
Upstream
| |
|
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Working interest production (kboepd) |
124.8 |
127.6 |
130.4 |
5% |
2% |
| Oil production (kbpd) |
111.2 |
114.8 |
115.3 |
4% |
0% |
| Net entitlement production (kboepd) |
123.0 |
126.1 |
128.6 |
5% |
2% |
| Angola (kbpd) |
10.7 |
10.3 |
10.8 |
1% |
5% |
| Brazil (kboepd) |
112.3 |
115.8 |
115.8 |
3% |
0% |
| Mozambique (kboepd) |
- |
0.1 |
1.9 |
- |
n.m. |
- Working interest production up QoQ, considering some contribution from Coral FLNG in Mozambique, which had its first cargo last November.
- Oil hedges covered 1.6 mbbl during 4Q22 (13% of production).
Commercial
| |
|
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Oil products - client sales (mton) |
1.8 |
2.0 |
1.8 |
(1%) |
(9%) |
| Natural gas sales - client sales (GWh) |
4,509 |
4,180 |
4,270 |
(5%) |
2% |
| Electricity - client sales (GWh) |
1,121 |
979 |
940 |
(16%) |
(4%) |
- Oil products sales slightly declined YoY, halting the post pandemic recovery trend, following reduced demand in Iberia, especially in the B2B segment.
- Natural gas and electricity sales impacted by activity reduction, especially in the B2B segment, as well as lower consumption in the B2C segment given the warmer temperatures.
- 4Q22 RCA Ebit to include an impairment of c.€100 m in retail distribution assets.
Industrial & Energy Management
| |
|
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Raw materials processed (mboe) |
13.6 |
22.9 |
20.5 |
51% |
(10%) |
| Galp refining margin (USD/boe) |
5.6 |
7.7 |
13.5 |
n.m. |
n.m. |
| Oil products supply1 (mton) |
3.7 |
4.3 |
3.8 |
2% |
(13%) |
| NG/LNG supply & trading volumes1 (TWh) |
14.3 |
13.1 |
12.7 |
(11%) |
(3%) |
| Trading (TWh) |
6.6 |
5.6 |
5.5 |
(17%) |
(2%) |
| Sales of electricity from cogeneration (GWh) |
119 |
177 |
166 |
39% |
(6%) |
1 Includes volumes sold to the Commercial segment.
- Refining raw materials processed decreased QoQ, following the planned maintenances activities performed. Refining margin higher QoQ, capturing the more favourable market environment.
- Refining margin hedges covered 5.6 mboe during 4Q22 (27% of throughput), with an expected impact of c.€80 m at the Ebitda level.
- Matosinhos’ site transformation project considering a provision of c.€60 m (impact in RCA Ebit).
- NG/LNG supply & trading impacted by additional sourcing restrictions and challenging European natural gas environment.
Renewables & New Businesses
| |
|
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Renewable installed capacity1 (GW) |
|
|
|
|
|
| Gross (100%) |
1.0 |
1.3 |
1.4 |
42% |
7% |
| Equity to Galp |
0.7 |
1.3 |
1.4 |
89% |
7% |
| Renewable generation (GWh) |
|
|
|
|
|
| Gross (100%) |
213 |
693 |
307 |
44% |
(56%) |
| Equity to Galp |
157 |
627 |
307 |
95% |
(51%) |
| Galp average solar generation sale price (EUR/MWh) |
198 |
126 |
101 |
(49%) |
(20%) |
1 Capacity installed by the end of the period.
- Renewables installed capacity reached 1.4 GW, following the commercial start-up at the end of the year of c.100 MW of solar projects in Iberia.
- Gross renewable energy generation down QoQ, reflecting seasonally lower sunlight hours. All current operating portfolio fully owned by Galp since July 2022.
Market Indicators
| |
|
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Exchange rate (EUR/USD) |
1.14 |
1.01 |
1.02 |
(11%) |
1% |
| Dated Brent price (USD/bbl) |
79.8 |
100.8 |
88.9 |
11% |
(12%) |
| Japan/Korea Marker LNG price (EUR/MWh) |
104.8 |
152.3 |
100.1 |
(5%) |
(34%) |
| Dutch TTF natural gas price (EUR/MWh) |
92.0 |
196.2 |
94.4 |
3% |
(52%) |
| Iberian MIBGAS natural gas price (EUR/MWh) |
94.2 |
138.5 |
75.4 |
(20%) |
(46)% |
| Iberian power baseload price1 (EUR/MWh) |
211.1 |
146.3 |
113.2 |
(46%) |
(23%) |
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)