All the materials related with the results, including the video presentation from Galp’s executives, are available here.
A solid start of 2025 for Galp, revealing operational resilience under an increasingly volatile market environment. The combined solid performances across all our businesses and the successful divestment completion of our stake in Area 4, in Mozambique, placed Galp in a privileged position to further reinforce its financial position throughout the year. Our focus on execution continued strong, progressing with our growth and transformation projects, including the conclusion of another successful well in Namibia, safely drilled and unlocking further opportunities within the Mopane complex.
Maria João Carioca & João Diogo Marques da Silva, co-CEOs
First quarter 2025
Galp’s results in the first quarter 2025 were robust, even though facing a volatile macro environment. The robust operating performance across all business areas led to a sound cash generation, further reinforced by the proceeds from Upstream divestments, and enabling Galp to sustain a strong financial position. By the end of the period, net debt stood at €1.2 bn.
RCA Ebitda reached €669 m:
- Upstream: RCA Ebitda was €385 m, with production down 3% YoY, reflecting planned maintenance activities, lower realisations following Brent evolution and an increase in volumes produced but not yet sold (in-transit).
- Industrial & Midstream: RCA Ebitda was €218 m, lower YoY, with a refining margin of $5.6/boe following the lower international cracks environment, although supported by a continued robust Midstream trading performance across commodities.
- Commercial: RCA Ebitda was €61 m, in line YoY, supported by a robust contribution from the retail segment in Iberia. Convenience & Energy Solutions represented 44% of divisional earnings.
- Renewables: RCA Ebitda was €10 m, reflecting seasonally low irradiation and lower generation YoY, which were more than offset by a higher realised sale price.
Group RCA Ebit was €497 m, mostly following RCA Ebitda, whilst RCA Net income amounted to €192 m.
Galp’s adjusted operating cash flow (OCF) was €266 m, reflecting the sound operating performance although considering phasing on income paid taxes in Brazil during the first quarter. Cash flow from operations (CFFO) reached €-271 m as result of a material working capital build related to a momentary increase in refining inventories, following adverse weather conditions, and a normalisation of receivables balance from Upstream sold cargoes when compared to 2024-end.
Net capex in the period resulted in an inflow of €487 m, as investments directed mainly to Upstream (Mopane in Namibia and Bacalhau in Brazil) and Industrial low-carbon projects, were more than offset by divestment proceeds of €870 m mostly related to the completion of Area 4 Mozambique stake sale, but also including the final earn-out from the Angola Upstream assets disposal.
Net debt stood at €1.2 bn, after minorities of €90 m and share repurchases of €39 m related to the 2025 buyback programme commenced in February.
Financial Data
| €m (RCA, except otherwise stated) |
|
|
|
|
| |
Quarter |
| |
1Q24 |
4Q24 |
1Q25 |
% Var. YoY |
| RCA Ebitda |
939 |
688 |
669 |
(29%) |
| Upstream |
569 |
437 |
385 |
(32%) |
| Industrial & Midstream |
304 |
182 |
218 |
(28%) |
| Commercial |
62 |
72 |
61 |
(2%) |
| Renewables |
9 |
9 |
10 |
12% |
| RCA Ebit |
761 |
347 |
497 |
(35%) |
| Upstream |
470 |
267 |
291 |
(38%) |
| Industrial & Midstream |
275 |
148 |
192 |
(30%) |
| Commercial |
32 |
4 |
30 |
(6%) |
| Renewables |
(2) |
(50) |
(3) |
49% |
| RCA Net income |
325 |
71 |
192 |
(41%) |
| Special items |
85 |
19 |
171 |
n.m. |
| Inventory effect |
(35) |
(56) |
(1) |
(98%) |
| IFRS Net income |
374 |
34 |
362 |
(3%) |
| Adjusted operating cash flow (OCF) |
559 |
393 |
266 |
(52%) |
| Cash flow from operations (CFFO) |
395 |
91 |
(271) |
n.m. |
| Net Capex |
(299) |
(541) |
487 |
n.m. |
| Free cash flow (FCF) |
50 |
304 |
186 |
n.m. |
| Dividends paid to non-controlling interests |
(2) |
(69) |
(90) |
n.m. |
| Dividends paid to Galp shareholders |
- |
- |
- |
n.m. |
| Buybacks |
(48) |
(27) |
(39) |
(19%) |
| Net debt |
1,506 |
1,207 |
1,226 |
(19%) |
| Net debt to RCA Ebitda1 |
0.45x |
0.40x |
0.44x |
n.m. |
| 1 Ratio considers the LTM Ebitda RCA (€2,791 m), which includes the adjustment for the impact from the application of IFRS 16 (€236 m). |
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|
|
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Conference call details
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