Portuguese oil and gas company Galp Energia announced on Monday a 16% increase in its second-quarter adjusted net profit, reaching 299 million euros, despite reduced production due to its withdrawal from natural gas exploration in Mozambique.
Production and Refining
Hydrocarbon production declined by 9% between April and June, but the amount of raw materials processed in its refineries increased by the same proportion, the company stated in a press release.
EBITDA and Half-Year Performance
Earnings before interest, taxes, depreciation, and amortization (EBITDA) also decreased by 7% year-on-year to 849 million euros. For the first half of the year, Galp recorded a 23% increase in profit to 624 million euros, while EBITDA remained stable.
Ownership and Record Profit
The Portuguese group, owned 35.8% by Amorim Energia and 8% by the state-owned holding company Parpublica, achieved a record profit of one billion euros last year.
Mozambique Divestment and New Investment Focus
At the end of May, the group announced the sale of a 10% stake in natural gas exploration projects in northern Mozambique, known as Area 4 of the Rovuma basin, to the Abu Dhabi National Oil Company (ADNOC) for approximately 600 million euros.
Strategic Shift and Namibian Discovery
This decision aligns with Galp’s strategy to prioritize investments in other geographical areas, such as Brazil or Namibia, where the group announced in April the discovery of a deposit in Mopane, off the coast of Namibia, potentially containing 10 billion barrels of oil.
Debt Reduction and Stock Performance
Galp Energia’s net debt decreased by 15% over the past year, reaching 1.16 billion euros at the end of June. On Monday morning, Galp’s shares rose 0.93% to 19 euros on the Lisbon Stock Exchange.