Galp Energia SGPS (GALP) Q4 2007 earnings summary

Executive summary

• Adjusted 2007 EBITDA was €891M, up 0.5% YoY; adjusted EPS was €0.50, up 1.4% in euros and 10.7% in USD on a pro forma basis.

• E&P and G&P growth was largely offset by weaker R&M performance; operational cash generation reduced net debt by €153M.

Financial highlights

• Replacement-cost adjusted turnover was €12,557M, up 3.9%; EBITDA €891M, up 0.5%; EBIT €621M, up 0.7%; net profit €418M, up 1.4%.

• Reported IFRS net profit was €777M, up 62.0%, and EBITDA €1,289M, up 38.9%; adjusted figures exclude inventory effects and non-recurring items, with 2006 adjusted for unbundling.

Outlook and guidance

• From 1Q08, planned disclosures include refinery operating cash costs, Gas & Power EBIT breakdowns, operational guidance and trading updates to improve estimates and manage expectations.

• A revised price-setting formula, changed from a two-week to a one-week backward-looking average in January 2008, is expected to align results more closely with market prices.