Galp Energia SGPS (GALP) Q2 2026 (Q&A) earnings summary

Executive summary

• Delivered strong operational and financial performance in H1 2026, leveraging asset quality and market conditions, with robust cash generation and upgraded full-year guidance.

• Upgraded full-year EBITDA guidance to approximately EUR 4 billion and operating cash flow to EUR 3 billion, reflecting robust first-half results and market tailwinds.

• Announced a 10% increase in 2026 dividend per share to EUR 0.70, with the first payment in August, signaling confidence in portfolio resilience and ongoing developments.

• Completed acquisition of a wind portfolio in Spain, increasing total renewables capacity and enhancing portfolio diversification.

• Continued progress on strategic partnerships and portfolio optimization, including Moeve transaction discussions and upstream growth initiatives.

Financial highlights

• H1 2026 RCA EBITDA: €2,216m, up 47% YoY; RCA Net Income: €812m, up 44% YoY; IFRS Net Income: €651m.

• Upgraded FY 2026 EBITDA guidance to c.€4bn and OCF to c.€3bn, based on conservative macro assumptions (Brent $70–80/bbl, refining margin $10–13/bbl for H2).

• Upstream production guidance for 2026 increased to around 130,000 bbl/day, supported by strong legacy asset performance and Bacalhau ramp-up.

• Renewables pro forma EBITDA expected to reach €80–110m in 2026 following recent acquisitions.

• Net debt at €1,379m; net debt to RCA EBITDA improved to 0.40x.

Outlook and guidance

• Full-year EBITDA and operating cash flow guidance upgraded, reflecting strong H1 performance and conservative macro assumptions.

• Dividend per share proposed at €0.70 (+10%), with €0.35 interim payable in August 2026.

• No immediate changes to share buyback policy; future adjustments contingent on greater visibility, particularly regarding the Moeve transaction.

• Upstream production expected to reach the top end of guidance due to strong asset uptime and Bacalhau ramp-up.

• Renewables RCA EBITDA guidance increased to c.€80m (from >€30m).