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Galp's quarterly revenue up 16% and Namibia oil in focus

Portugal's Galp Energia reported on Monday a 16% rise in secondquarter net earnings, beating expectations as higher oil rates and lower production costs balance out lowered output and the refining margin held stable.

The company likewise validated ongoing preparations for a 2nd drilling phase of 4 wells in Namibia's Mopane field, where it has an 80% stake, starting in the 4th quarter. It stated it was in initial talks with possible partners.

Galp shares, up more than 40% up until now this year, rose more than 1%.

It reserved an adjusted net profit of 299 million euros ($ 325.34 million), above the 236 million euros anticipated by 18 experts surveyed by the business.

Changed profits before interest, taxes, depreciation and amortisation (EBITDA) fell 7% to 849 million euros, compared with the 821-million consensus.

Galp has actually approximated Mopane could contain at least 10 billion barrels of oil, making it one of the largest discoveries in the nascent basin following successful expedition by TotalEnergies and Shell.

reported earlier that more than 12 oil companies, including Exxon, Shell and Brazil's Petrobras, had actually revealed interest in buying a 40% stake in Mopane.

We're having preliminary conversations with potential partners, however you will comprehend there is absolutely nothing much we can say at this phase, Chief Executive Filipe Silva told a. teleconference with analysts.

He said Galp would give top priority to a partner eager to. establish rapidly which would provide the capital expenditure.

The timing of any farmout arrangement would depend upon the. advancement needs and on when Galp can get the most for the. stake, he added.

After completing the sale of properties in Angola and agreeing. to sell those in Mozambique, Galp has unprecedented monetary. strength and can keep providing long-term growth from high. return jobs, he said.

Galp kept its assistance for average yearly net capex of. 1 billion euros over 2023-25.

Galp's share of oil and gas production from upstream. tasks in Brazil fell 5% on the year to 106,000 barrels of oil. comparable each day (boepd). It did not book production in. Mozambique in the quarter after reserving 5,000 boepd a year ago.

(source: Reuters)