Galp 4Q & FY24 Results and Outlook

All the materials related with the results, including the video presentation from Galp’s executives, are available here.

 

“We close 2024 with another strong quarter, in a year of consistent delivery, at or above headline guidance across all business units. Ebitda reached €3.3 bn and OCF of €2.1 bn. Even after competitively rewarding our shareholders, we reduced net debt compared to 2023-end and further strengthened our financial position. These results not only depict 2024 as a year of strong execution for Galp, but also lay the foundations for future growth and value creation. In 2025 and 2026 we will continue to execute our key growth projects, the hallmark of Galp´s portfolio, combining a disciplined approach towards a low capital intensity plan. This basis provides us the confidence to propose to the next AGM a 15% DPS increase, to €0.62/share, and a buyback of €250 m.

Our current governance is designed to ensure strategic continuity and execution focus. We have great People and the Board's support and together we look forward to deliver on Galp’s unique investment case in the year ahead.”

Maria João Carioca & João Diogo Marques da Silva, co-CEOs

 

Fourth quarter 2024

Galp’s results in the fourth quarter 2024 showcased resilience under a volatile macro environment, supported by robust Upstream and Industrial performance, whilst Midstream maintained its strong contribution. At the end of the year, Galp further solidified its financial position, with net debt at €1.2 bn, down compared to year-end 2023.

RCA Ebitda reached €688 m:

• Upstream: RCA Ebitda was €437 m, with production from Brazil down YoY and lower realisations given Brent evolution.
  Note: 2024 RCA figures exclude the contribution from Mozambican Area 4, booked as assets held for sale.
• Industrial & Midstream: RCA Ebitda was €182 m, supported by the high throughput levels of the refinery and a refining margin of $5.2/boe. Midstream activities maintained a stable contribution YoY.
• Commercial: RCA Ebitda was €72 m, higher YoY, following increased sales in oil products, gas and power in Iberia. Convenience and Energy Solutions represented c.30% of Ebitda.
• Renewables: RCA Ebitda was €9 m, with seasonally lower generation and following lower realised prices YoY, although reflecting a recovery compared to the rest of the year.

Group RCA Ebit was €347 m, with non-cash items including impairments of €143 m across business units, whilst RCA net income was €71 m.

Galp’s adjusted operating cash flow (OCF) was €393 m, following the strong business performance. Cash flow from operations (CFFO) reached €917 m, €524 m above OCF, mainly supported by a working capital release related to a decrease in receivables from Upstream sold cargoes and lower commodities prices.

Investments in the period amounted to €500 m, mainly directed towards the execution of upstream projects, namely the Namibia appraisal campaign and Bacalhau, as well as Industrial low-carbon projects execution.

Net debt decreased by €264 m, to €1.2 bn, after minorities of €69 m and share repurchases of €27 m related to the 2024 buyback programme execution.

 

Full year 2024

Galp’s RCA Ebitda was €3,297 m, while OCF was €2,138 m, reflecting a solid operating performance across business divisions in a weaker macro environment.

Net capex totalled €832 m, supported by the divestment proceeds collected related to the Angolan upstream assets during the period. Economic capex of €1,291 m mostly directed towards the exploration and appraisal campaigns in Namibia and upstream projects under development in Brazil, namely Bacalhau, as well as to industrial low carbon projects and renewables projects deployment.

FCF amounted to €1,335 m. Net debt at the end of the year was €1.2 bn, lower compared to the end of 2023 and considering distributions of €769 m, including €419 m of dividends paid to shareholders and €351 m in buybacks for share capital reduction, and €166 m to minority interests.

At the end of the period, Galp sustained a strong financial position, with net debt to RCA Ebitda at 0.4x.

 

Financial Data

€m (RCA, except otherwise stated)
Quarter					Twelve months
4Q23	3Q24	4Q24	% Var. YoY		2023	2024	% Var. YoY
720	820	688	(4%)	RCA Ebitda	3,558	3,297	(7%)
599	541	437	(27%)	Upstream	2,263	2,078	(8%)
63	165	182	n.m.	Industrial & Midstream	929	876	(6%)
54	92	72	34%	Commercial	303	306	1%
21	24	9	(56%)	Renewables	131	47	(64%)
(17)	(2)	(11)	(34%)	Corporate & Others	(69)	(11)	(84%)
411	621	347	(16%)	RCA Ebit	2,469	2,388	(3%)
428	429	267	(38%)	Upstream	1,739	1,595	(8%)
19	133	148	n.m.	Industrial & Midstream	693	747	8%
19	59	4	(80%)	Commercial	145	143	(2%)
(1)	11	(50)	n.m.	Renewables	18	(48)	(62%)
(54)	(11)	(22)	(59%)	Corporate & Others	(126)	(48)	(62%)
284	266	71	(75%)	RCA Net income	1,002	961	(4%)
45	11	19	(59%)	Special items	278	207	(25%)
6	(8)	(56)	n.m.	Inventory effect	(38)	(129)	n.m.
336	269	34	(90%)	IFRS Net income	1,242	1,040	(16%)
488	540	393	(20%)	Adjusted operating cash flow (OCF)	2,269	2,138	(6%)
417	384	162	(61%)	Upstream	1,179	1,080	(8%)
29	165	73	n.m.	Industrial & Midstream	764	773	1%
54	73	53	(2%)	Commercial	218	247	13%
3	22	11	n.m.	Renewables	138	48	(66%)
458	475	917	n.m.	Cash flow from operations (CFFO)	2,377	2,349	(1%)
(382)	(229)	(541)	41%	Net Capex	(859)	(832)	(3%)
22	193	304	n.m.	Free cash flow (FCF)	1,373	1,335	(3%)
(80)	(2)	(69)	(14%)	Dividends paid to non-controlling interests	(169)	(166)	(2%)
-	(212)	-	n.m.	Dividends paid to Galp shareholders	(422)	(419)	(1%)
(192)	(191)	(27)	(86%)	Share buybacks	(500)	(351)	(30%)
1,400	1,471	1,207	(14%)	Net debt	1,400	1,207	(14%)
0.42x	0.48x	0.40x	(7%)	Net debt to RCA Ebitda1	0.42x	0.40x	(7%)
1Ratio considers the LTM Ebitda RCA (€3,066 m), which includes the adjustment for the impact from the application of IFRS 16  (€231 m).

Distributions to shareholders update 

Galp’s Board of Directors will propose to the Annual General Shareholders Meeting of 2025 a dividend per share increase of 15%, to €0.62 per share. Additionally, based on 2024 performance and maintaining the 1/3 of Operating Cash Flow headline, a €250 m share repurchase programme for share capital reduction purposes will be executed in 2025. 

Short term outlook

Galp is providing key operating and financial guidance for the 2025-26 period, in accordance with its updated views and macro assumptions:

 

Conference call details

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