Galp Energia

Earnings Release • Apr 17, 2023

1Q23 Trading Update

The information below aims to provide the key macroeconomic, operating and trading conditions experienced by Galp during the first quarter of 2023. All data referred to below is currently provisional and may differ from the final figures.

Galp's 1Q23 results will be published on May 5, before the opening of Euronext Lisbon, together with a management presentation. On that day, the Company will hold an analysts' conference call at 14:00 (Lisbon/London time). Further details can be found at the end of this release.

Consolidated earnings and financial position

• Robust operating cash generation from all divisions, despite higher taxation during the period (mostly related with Brazil upstream activities).

Upstream

	1Q22	4Q22	1Q23	Var. YoY	Var. QoQ
Working interest production (kboepd)	131.1	130.4	120.3	(8%)	(8%)
Oil (%)	90%	88%	86%	(5%)	(3%)
Brazil (kboepd)	119.4	115.8	114.9	(4%)	(1%)
Mozambique (kboepd)	-	2.0	5.4	n.m.	n.m.
Angola (kbpd)	11.9	12.6	-	n.m.	n.m.
Net entitlement production (kboepd)	129.5	128.6	120.1	(7%)	(7%)

• WI production evolution QoQ reflecting the sale of the Angolan upstream assets. Current portfolio (Brazil and Mozambique) production increased, supported by the ramp-up of Coral Sul FLNG in Mozambique, which is still in commissioning phase.

• Brazilian temporary levy on oil exports estimated at €10-15 m, to be booked as an RCA tax item.

Renewables & New Businesses

	1Q22	4Q22	1Q23	Var. YoY	Var. QoQ
Renewable installed capacity1 (GW)
Gross (100%)	1.0	1.4	1.4	35%	0%
Equity to Galp	0.8	1.4	1.4	81%	0%
Renewable generation (GWh)		-
Equity to Galp	180	307	448	n.m.	46%
Galp realised sale price (EUR/MWh)	204	100	108	(47%)	8%

1 Installed capacity at the end of the period.

• Renewable energy generation benefiting QoQ from higher irradiation and full contribution from the c.100 MW installed during 4Q22.

• Galp realised sale price up QoQ and above market benchmark, leveraging on energy management short-term agreements to lock in prices.

Industrial & Midstream

	1Q22	4Q22	1Q23	Var. YoY	Var. QoQ
Raw materials processed (mboe)	21.8	20.5	19.6	(10%)	(5%)
Galp refining margin (USD/boe)	6.8	13.5	14.3	n.m.	6%
Oil products supply1 (mton)	3.9	3.8	3.6	(7%)	(4%)
NG/LNG supply & trading volumes1 (TWh)	14.8	12.7	10.7	(27%)	(16%)
Trading (TWh)	6.1	5.5	3.9	(35%)	(28%)
Sales of electricity from cogeneration (GWh)	113	166	162	44%	(2%)

1 Includes volumes sold to the Commercial segment.

• Refining raw materials processed decreased and operating costs increased QoQ, following the planned maintenance activities performed during the quarter (hydrocracker), with operating costs expected at c.\$5/boe.
• Refining margin higher QoQ, capturing the international products' cracks and reduced energy costs environment.
• Refining margin hedges covered 1.7 mboe during 1Q23 (9% of throughput), with an expected impact of c.€20 m at the Ebitda level.
• NG/LNG supply & trading to resume its positive contribution, benefiting from higher flexibility due to limited pre-sold and prehedged contracts, despite reduced sourced volumes and lower European natural gas prices.

Commercial

	1Q22	4Q22	1Q23	Var. YoY	Var. QoQ
Oil products - client sales (mton)	1.7	1.8	1.7	3%	(5%)
Natural gas sales - client sales (GWh)	5,590	4,270	3,722	(33%)	(13%)
Electricity - client sales (GWh)	1,139	940	933	(18%)	(1%)

• Oil products sales increased YoY, supported by a recovery in B2B, namely from the aviation segment.

• Natural gas and electricity sales reflecting an optimisation of the clients' portfolio and a reduction in activity within the B2B segment.

Market Indicators

	1Q22	4Q22	1Q23	Var. YoY	Var. QoQ
Exchange rate (EUR/USD)	1.12	1.02	1.07	(4%)	5%
Dated Brent price (USD/bbl)	102.2	88.9	81.2	(21%)	(9%)
Dutch TTF natural gas price (EUR/MWh)	95.6	94.4	54.1	(43%)	(43%)
Iberian MIBGAS natural gas price (EUR/MWh)	97.1	75.2	52.2	(46%)	(31%)
Iberian power baseload price1 (EUR/MWh)	229.3	113.2	96.4	(58%)	(15%)
Iberian solar captured price (EUR/MWh)	217.8	102.2	84.4	(61%)	(17%)

Source: Platts/MIBGAS/Bloomberg/OMIE/REE.

1 The Iberian power price is based on the Spanish power pool price published by the Iberian Energy Market Operator (OMIE)

1Q23 Consensus | Results Presentation Details

Company collected consensus

The Company's collected consensus for quarterly earnings is scheduled to be opened for submission between April 17 and April 21 and will be published by April 24.

Results presentation details

Webcast

• https://edge.media-server.com/mmc/p/e7236k63

Conference call registration

• https://register.vevent.com/register/BI6fe2d6f81d7645f1b6a101480b76bc57

Galp Energia, SGPS, S.A.

Investor Relations:

Otelo Ruivo, Director João G. Pereira Teresa Toscano Tommaso Fornaciari César Teixeira

Contacts: Tel: +351 21 724 08 66 Fax: +351 21 724 29 65

Address: Rua Tomás da Fonseca, Torre A, 1600-209 Lisbon, Portugal Website: www.galp.com/corp/en/ Email: investor.relations@galp.com

Reuters: GALP.LS Bloomberg: GALP PL

This document may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholderreturns; liquidity; capital and operating expenditures; performance levels, operational or environmental goals, targets or commitments and project plans, timing, and outcomes; production rates; developments of Galp's markets; and impacts of the COVID-19 pandemic on Galp's businesses and results; any of which may significantly differ depending on a number of factors, including supply and demand for oil, gas, petroleum products, power and other market factors affecting them; the outcome of government policies and actions, including actions taken to address COVID-19 and to maintain the functioning of national and international economies and markets; the impacts of the COVID-19 pandemic on people and economies; the impact of Galp's actions to protect the health and safety of its employees, customers, suppliers and communities; actions of Galp's competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the actions of consumers; other legal and political factors, including changes in law and regulations and obtaining necessary permits; unexpected operating events or technical difficulties; the outcome of commercial negotiations, including negotiations with governments and private entities; and other factors discussed in Galp's Management Report & Accounts filed with the Portuguese Securities Market Commission (CMVM) for the year ended December 31, 2022 and available on our website at galp.com. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements express future expectations that are based on management's expectations and assumptions as of the date they are disclosed and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such those statements. Galp and its respective representatives, agents, employees or advisers do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this document to reflect any change in events, conditions or circumstances. This document does not constitute investment advice nor forms part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or otherwise acquire securities of Galp or any of its subsidiaries or affiliates in any jurisdiction or an inducement to engage in any investment activity in any jurisdiction.