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Portugal’s Galp quarterly profit up 62%, below market forecast
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LISBON (Reuters) -Portugal’s Galp Energia reported on Friday a smaller-than-expected 62% rise in adjusted first-quarter profit as refining margins nearly tripled from a year ago, but crude production and oil prices dropped.
LISBON (Reuters) -Portugal’s Galp Energia reported on Friday a smaller-than-expected 62% rise in adjusted first-quarter profit as refining margins nearly tripled from a year ago, but crude production and oil prices dropped.
It netted 250 million euros ($276 million), below the 294 million euros expected on average by 21 analysts polled by the company, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which slipped 1% to 864 million euros, were in line with predictions.
The company maintained its outlook for the full year, which includes adjusted EBITDA of 3.2 billion euros. The adjustments reflect changes in Galp’s stocks of crude.
Galp’s share of oil and gas production from projects in which it has a stake, mainly in Brazil, fell 8% year-on-year to 120,300 barrels of oil equivalent per day, reflecting the sale of Angolan upstream assets.
Brent oil prices dropped to an average of $81.2 a barrel in the first quarter from $102.2 a year ago, it said.
The refining margin rose to $14.3 a barrel from $4.8 a year earlier, taking advantage “from the reduced energy costs environment.”
($1 = 0.9058 euros)
(Reporting by Sergio Goncalves; editing by Andrei Khalip)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company's operating performance and profitability.
Crude oil production is the process of extracting crude oil from the ground. It is a key component of the oil and gas industry and affects global oil prices.
Net profit is the amount of money a company earns after all expenses, taxes, and costs have been deducted from total revenue. It reflects the company's profitability.
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