Portuguese oil and gas group Galp Energia announced on Friday that it had posted a 62% increase in first-quarter net profit to 250 million euros, thanks in part to an increase in its refining margin. The Portuguese group posted a net profit of 155 million euros for the first three months of last year.
Galp’s results for the first quarter of 2023 “reflect a strong operational performance, particularly in industrial and commercial activities,” the group said in a statement. However, its profit was penalized by the negative impact of taxes, amounting to 389 million euros. In particular, Galp noted the payment of 14 million euros in respect of the temporary Brazilian tax on oil exports, and 46 million euros in respect of windfall tax applied in Portugal and Spain.
The refining margin was $14.3 per barrel, compared with $4.8 in the same period last year. Industrial EBITDA thus jumped to 235 million euros in the first quarter of 2023, compared with 2 million euros for the same period in 2022. Galp’s gross operating income(Ebitda) has however slightly decreased in the first quarter, to 864 million euros against 869 million euros in the same period in 2022, mainly due to a “less favorable oil price environment”, the oil group said.
Galp’s net debt at the end of March stood at 1.34 billion euros, down 44% compared to the same period last year. After the announcement of these results, Galp Energia’s share price fell by 1.19% to 10.37 euros on the Lisbon Stock Exchange on Friday morning.