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Portugal's Galp core profit falls 22% with less oil output, weaker margins

Portugal's Galp Energia on Monday posted a 22% fall in thirdquarter adjusted core revenue, struck by lower oil output and a sharp drop in refining margins, but profits still beat estimates for the period.

The energy firm reported adjusted earnings before interest, taxes, depreciation and amortization of 820 million euros ($ 885. million), beating the 766 million euros average anticipated by 20. experts surveyed by the business.

Galp's share of oil and gas production from tasks in. which it has a stake fell 10% year-on-year to 112,000 barrels of. oil equivalent per day, showing the disposal of its 10% stake. in the Area 4 task in Mozambique.

Only thinking about the Brazilian possessions that are its present. portfolio, production was down 3% year-on-year, Galp said.

CEO Filipe Silva said in a declaration the company had. provided another robust efficiency throughout this quarter,. regardless of the less encouraging refining and products rate. environment.

Brent crude costs fell to an average of $80.3 per barrel in. the quarter from $86.7 a year previously, it added, while the. refining margin dropped to $4.7 per barrel from $14.6 a year. earlier.

Silva stated Galp remained in a strong position to continue growing. its low-carbon production jobs, while decarbonising its. refining operations.

Its changed net earnings increased 27% to 266 million euros. in the quarter, also above the 220 million euros approximated,. benefiting from lower taxes.

The results are adjusted to show modifications in the business's. stocks of crude.

(source: Reuters)