Galp invests €295mn in Namibia, Brazil and Portugal despite profit decline
Galp recorded a net profit of €192mn in the first quarter of 2025, down 41% year-on-year, while ramping up investments in oil exploration and renewable energy projects in Namibia, Brazil and Portugal.
| Sectors | Gas, Hydrogen Energy, Alternative Fuels, Oil, Gas Exploration & Production, Green Hydrogen, SAF, Exploration & Production |
|---|---|
| Themes | Markets & Finance, Results |
| Countries | Brazil, Portugal |
Galp Energia SGPS SA posted an adjusted net profit of €192mn ($205mn) in the first quarter of 2025, a 41% decrease compared to the same period in 2024. This decline was mainly due to an increase in scheduled maintenance shutdowns at its production units in Brazil and lower refining margins on international markets.
Strong investments in strategic projects
During this period, Galp invested €295mn ($315mn), equivalent to 1.5 times its net profit. These investments were primarily directed towards oil exploration in Namibia, the Bacalhau project in Brazil, and industrial transformation projects at the Sines refinery, notably the construction of a green hydrogen production unit and an advanced biofuels plant, including the production of sustainable aviation fuels (SAF).
The company also maintained operations in Portugal, where the Sines refinery exported 31% of its produced volumes. However, processed feedstocks declined by 4%, reaching 21.6 million barrels due to adverse weather conditions.
Operational results by division
Galp’s oil and gas production in Brazil fell by 3% to 104,000 barrels per day. Despite this decrease, the company maintained its annual production targets, having completed 40% of its scheduled maintenance operations for the entire year within three months. Replacement Cost Adjusted (RCA) Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda) decreased by 29% to €669mn ($714mn), impacted by a 32% drop in the Upstream segment in Brazil and a 28% fall in the Industrial & Midstream segment.
The Commercial division experienced growth in the sale of oil products, natural gas, and electricity, reaching 430,000 customers for the first time. The division also expanded its electric vehicle charging network to 6,900 points, while maintaining a similar financial contribution compared to the previous year.
Development of renewable energy activities
In the renewable energy segment, Galp slightly reduced its production, an effect attributed to particularly rainy weather conditions. However, active portfolio management allowed a 12% improvement in the segment’s Ebitda, reaching €10mn ($10.7mn).
The company achieved a milestone with the commissioning of its first storage battery associated with a photovoltaic park in Alcoutim, Portugal, thereby initiating the hybridisation process of its renewable energy production assets.
Galp also plans to proceed with a second interim dividend payment for the 2024 results, amounting to €0.34 ($0.36) per share, pending approval at its General Assembly scheduled for May 9.
