Galp Energia SGPS (GALP) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered robust results amid volatile markets, with strong Iberian mid- and downstream performance and successful Mozambique Area 4 divestment reinforcing the financial position and enabling continued transformation projects, including progress in Namibia.

• Disciplined capital allocation and a lean organization remain priorities amid ongoing market volatility and geopolitical uncertainty.

• The executive structure was reconfirmed, with co-CEOs focused on execution and long-term value creation.

Financial highlights

• RCA Ebitda at €669m, down 29% year-over-year; RCA Net Income at €192m, down 41% year-over-year; IFRS Net Income at €362m, down 3% year-over-year.

• Upstream production stood at 104,000 barrels, impacted by maintenance turnarounds.

• Divestment of Mozambique Area 4 and Angola earnout generated $870 million in cash, strengthening the financial position.

• Net capex resulted in an inflow of €487m, mainly from Mozambique Area 4 divestment proceeds.

• Midstream EBITDA guidance for 2025 remains above €350 million, with upside potential from new LNG cargoes.

Outlook and guidance

• Maintains 2025–26 macroeconomic, financial, and operational guidance.

• Upstream production guidance unchanged at ≥105 kboepd; over 40% of annual maintenance completed in Q1.

• CapEx guidance for 2025 is already 20% lower than the previous period, with further optimization possible.

• Bacalhau project in Brazil targets first oil later in 2025, with plateau expected in 2027 and annual OCF contribution of ~$400 million.

• Refining margin guidance for 2025–2026 is ~$6/bbl, despite recent volatility and Q1 margins below plan.