Galp Energia SGPS (GALP) Q4 2015 earnings summary

Executive summary

• Q4 EBITDA was €309m; full-year EBITDA reached €1.564bn, above the 2015 guidance range of €1.1bn–€1.3bn.

• Production growth and the integrated portfolio supported performance amid lower oil prices and challenging market conditions.

Financial highlights

• Q4 turnover was €3.435bn, down 23% YoY; FY turnover was €15.517bn, down 13%.

• Q4 EBITDA was €309m, down 22% YoY; FY EBITDA was €1.564bn, up 19%.

• Q4 RCA net income was €149m, up 9% YoY; FY RCA net income was €639m, up 71%.

• FY IFRS net income was €123m, affected by a €272m inventory effect and €244m in non-recurring items.

Outlook and guidance

• FPSO #4 was ramping up, with its fourth producer well expected in 1Q16; FPSO #5 first oil was imminent, and FPSO #6 was due for deployment by mid-2016.

• FPSO #5 was expected to reach full capacity during 2017.

• 2015 EBITDA, production growth, refining utilisation and NG/LNG sales exceeded guidance; direct-client oil sales of 9.1m tonnes were below the 9.5m–10m target.