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“We continued to demonstrate Galp’s operational drive, delivering another robust performance during this quarter, despite the less supportive refining and commodities’ price environment. Our assets were able to safely navigate the market volatility, underscoring our commitment to operational excellence. This performance left the team in a strong position to continue to de-risk and grow our low carbon intensive upstream projects, whilst decarbonising our downstream portfolio"
Filipe Silva, CEO
Third quarter 2024
Galp delivered a robust set of results in 3Q24, with strong operating performance and disciplined investments positioning the Company to end 2024 with a strong balance sheet.
RCA Ebitda reached €820 m:
- Upstream: RCA Ebitda was €541 m, supported by resilient production levels and the competitive cost base of the Brazilian portfolio, partially offsetting lower oil prices
Note: 2024 RCA figures exclude the contribution from Mozambican upstream, booked as assets held for sale.
- Industrial & Midstream: RCA Ebitda was €165 m, supported by high utilisation levels in Industrial, despite the much softer refining margin environment, and the continued robust Midstream momentum, namely from supply and trading activities of oil, natural gas and power.
- Commercial: RCA Ebitda was €92 m, supported by a robust contribution from retail activities, including convenience and customer solutions, and from the enterprise (B2B) segment in Iberia.
- Renewables: RCA Ebitda was €24 m in the quarter, registering higher generation from increased installed capacity partially mitigating the much lower electricity market prices in Iberia compared to 2023.
Group RCA Ebit was €621 m, whilst RCA net income was €266 m.
Galp’s adjusted operating cash flow (OCF) was €540 m, following the robust business performance. Cash flow from operations (CFFO), including working capital changes, reached €475 m.
Investments amounted to €248 m, directed mainly towards the execution of upstream projects, namely Bacalhau, as well as Industrial activities and Renewables developments.
Net debt increased by €313 m, to €1.5 bn, reflecting the dividend payment of €212 m and a concentration of the share buyback programme execution of €191 m.
Nine months 2024
Galp’s RCA Ebitda was €2,609 m, while OCF was €1,745 m, reflecting a robust operating performance and despite a less supportive refining environment during the period, and now excluding any contribution from Coral South FLNG in Area 4, Mozambique.
Net capex totalled €290 m, with economic capex of €792 m mostly directed towards the upstream projects under development in Brazil, namely Bacalhau, and to the exploration campaign in Namibia, supported by the proceeds collected from the divestment completed during the period (Angola upstream).
FCF amounted to €1,032 m, with net debt of €1.5 bn stable compared to the end of 2023, already considering dividends to non-controlling interests of €97 m, dividends paid to shareholders of €419 m and €324 m invested through share buybacks.
At the end of the period, Galp’s strong operating performance and robust financial position support its key financial guidance for 2024, with Group Ebitda and OCF still expected >€3.1 bn and >€2.0 bn, respectively, despite a volatile macro context.
Financial Data
| €m (RCA, except otherwise stated) |
|
|
|
|
|
| Quarter |
|
Nine months |
| 3Q23 |
2Q24 |
3Q24 |
% Var. YoY |
|
2023 |
2024 |
% Var. YoY |
| 1,057 |
849 |
820 |
(22%) |
RCA Ebitda |
2,838 |
2,609 |
(8%) |
| 594 |
531 |
541 |
(9%) |
Upstream |
1,664 |
1,641 |
(1%) |
| 342 |
226 |
165 |
(52%) |
Industrial & Midstream |
866 |
695 |
(20%) |
| 111 |
79 |
92 |
(16%) |
Commercial |
249 |
234 |
(6%) |
| 43 |
33 |
24 |
(43%) |
Renewables |
110 |
38 |
(65%) |
| (32) |
7 |
(2) |
(94%) |
Corporate & Others |
(51) |
0 |
n.m. |
| 741 |
660 |
621 |
(16%) |
RCA Ebit |
2,058 |
2,041 |
(1%) |
| 469 |
429 |
429 |
(9%) |
Upstream |
1,311 |
1,328 |
1% |
| 258 |
191 |
133 |
(49%) |
Industrial & Midstream |
674 |
599 |
(11%) |
| 78 |
48 |
59 |
(24%) |
Commercial |
126 |
139 |
10% |
| (27) |
(8) |
11 |
n.m. |
Renewables |
19 |
2 |
91% |
| (37) |
(1) |
(11) |
(70%) |
Corporate & Others |
(72) |
(26) |
(64%) |
| 210 |
299 |
266 |
27% |
RCA Net income |
718 |
890 |
24% |
| 24 |
93 |
11 |
(54%) |
Special items |
232 |
189 |
(19%) |
| (69) |
(30) |
(8) |
n.m. |
Inventory effect |
(45) |
(73) |
63% |
| 303 |
362 |
269 |
(11%) |
IFRS Net income |
906 |
1,006 |
11% |
| 716 |
646 |
540 |
(25%) |
Adjusted operating cash flow (OCF) |
1,781 |
1,745 |
(2%) |
| 363 |
322 |
384 |
6% |
Upstream |
762 |
918 |
20% |
| 252 |
231 |
165 |
(34%) |
Industrial & Midstream |
735 |
700 |
(5%) |
| 79 |
77 |
73 |
(8%) |
Commercial |
164 |
194 |
18% |
| 43 |
5 |
22 |
(48%) |
Renewables |
135 |
36 |
(73%) |
| 686 |
562 |
475 |
(31%) |
Cash flow from operations (CFFO) |
1,919 |
1,432 |
(25%) |
| (161) |
238 |
(229) |
43% |
Net Capex |
(476) |
(290) |
(39%) |
| 497 |
789 |
193 |
(61%) |
Free cash flow (FCF) |
1,351 |
1,032 |
(24%) |
| (2) |
(93) |
(2) |
(31%) |
Dividends paid to non-controlling interests |
(89) |
(97) |
9% |
| (213) |
(206) |
(212) |
(0%) |
Dividends paid to Galp shareholders |
(422) |
(419) |
(1%) |
| (72) |
(85) |
(191) |
n.m. |
Share buybacks |
(308) |
(324) |
5% |
| 1,211 |
1,158 |
1,471 |
21% |
Net debt |
1,211 |
1,471 |
21% |
| 0.34x |
0.35x |
0.48x |
n.m. |
Net debt to RCA Ebitda1 |
0.34x |
0.48x |
n.m. |
| 1Ratio considers the LTM Ebitda RCA (€3,075 m), which includes the adjustment for the impact from the application of IFRS 16 (€253 m). |
|
|
|
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