- Net income of €192 million lower than the same period of the previous year due to the increase in planned maintenance shutdowns at production units in Brazil and the drop in refining margins in the 1st quarter of 2025.
- Investment in this period totaled €295 million, equivalent to 1.5x net income, driven by exploration and evaluation activities in Namibia and the construction of green hydrogen and advanced biofuels projects in Sines.
- In Portugal, the Sines Refinery exported 31% of the volumes produced, the
electric vehicle charging network grew to 6,900 points, gas and electricity reached the 430,000 customer mark for the first time and the renewables division marked the start of operations of its first large-scale battery at the Alcoutim photovoltaic park.
Galp achieved an adjusted net profit of €192 million in the 1st quarter of 2025, a decrease of 41% compared to the same period last year, which reflects an increase in scheduled maintenance shutdowns at production units in Brazil and a decrease in international refining margins.
Adjusted earnings at replacement cost (RCA) before interest, taxes, depreciation and amortization (EBITDA) were €669 million, down 29% compared to the same period in 2024, in line with the decrease in results from Galp's two main business areas, namely Upstream in Brazil, whose EBITDA decreased by 32%, to €385 million, and Industrial & Midstream, which includes the Refining area, and whose EBITDA fell by 28%, to €218 million.
In this quarter, Galp invested a total of €295 million. Most of this investment went to the evaluation of oil reserves in Namibia, the Bacalhau project in Brazil, and the transformational projects underway at the Sines Refinery – the green hydrogen production unit and the advanced biofuels production unit (including sustainable aviation fuels – SAF), which are expected to start operating next year.
In operational terms, Galp's total oil and gas production in Brazil decreased by 3% to 104,000 barrels per day. Despite this, Galp maintains its average production targets until the end of the year, since 40% of the maintenance operations planned for the entire year were completed in three months.
In a complex quarter for Refining & Midstream, despite the availability of the refining equipment, adverse weather conditions contributed to a 4% decrease in raw materials processed in Sines, to the equivalent of 21.6 million barrels. In addition, the refining margin, i.e. the profit captured on each barrel processed, decreased from $12 to $5.6, to which are added the refinery's operating costs of $3 per barrel.
This margin depends essentially on the difference between the prices of the raw materials purchased, such as crude oil, and the prices of the products sold, such as diesel and gasoline, both of which are set by supply and demand on international markets.
The Sines Refinery exported 31% of the volumes produced.
Comercial recorded a positive quarter in sales, both of petroleum products and natural gas and electricity, benefiting from the increase in the number of customers and the expansion of the electric vehicle charging network to 6,900 points. The business area reached the 430,000 customers mark for the first time in gas and electricity, which represents an increase of 80,000 customers compared to the same period of the previous year and 30,000 customers compared to the 4th quarter of 2024. Despite the growth in energy sold in the Iberian Peninsula, the financial contribution remained the same compared to the same period of the previous year. The offer of Convenience and Energy Solutions products represented 44% of Comercial's EBITDA, which totaled €61 million.
The Renewables business unit reduced production slightly, which was to be expected in one of the wettest quarters on record in recent years. However, more active production management, with a strong focus on the system services market, allowed the average sales price to be sustained, resulting in a 12% improvement in the area's EBITDA, to a total of €10 million.
Still in Renewables, Galp marked the start of operations in Alcoutim of its first battery associated with a photovoltaic park, one of the largest operating in the country, thus beginning the process of hybridizing its renewable energy production assets.
The company expects to make a second interim dividend payment during the second quarter of this year, relating to the 2024 results, in the amount of €0.34 per share, which is still subject to approval at the General Meeting scheduled for May 9.
Source: Galp
