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Galp Energia
Earnings Release • Apr 28, 2025
1908_10-q_2025-04-28_e1e3c1d2-5cf7-42f4-b8d3-c0a42a3b52c9.pdf
Earnings Release
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Results Highlights
A solid start of 2025 for Galp, revealing operational resilience under an increasingly volatile market environment. The combined solid performances across all our businesses and the successful divestment completion of our stake in Area 4, in Mozambique, placed Galp in a privileged position to further reinforce its position throughout the year. Our focus on execution continued strong, progressing with our growth and transformation projects, including the conclusion of another successful well in Namibia, safely drilled and unlocking further opportunities within the Mopane complex.
Maria João Carioca & João Diogo Marques da Silva, co-CEOs
First quarter 2025
Galp's results in the first quarter 2025 were robust, even though facing a volatile macro environment. The robust operating performance across all business areas led to a sound cash generation, further reinforced by the proceeds from Upstream divestments, and enabling Galp to sustain a strong financial position. By the end of the period, net debt stood at €1.2 bn.
RCA Ebitda reached €669 m:
- Upstream: RCA Ebitda was €385 m, with production down 3% YoY, reflecting planned maintenance activities, lower realisations following Brent evolution and an increase in volumes produced but not yet sold (in-transit).
- Industrial & Midstream: RCA Ebitda was €218 m, lower YoY, with a refining margin of \$5.6/boe following the lower international cracks environment, although supported by a continued robust Midstream trading performance across commodities.
- Commercial: RCA Ebitda was €61 m, in line YoY, supported by a robust contribution from the retail segment in Iberia. Convenience & Energy Solutions represented 44% of divisional earnings.
- Renewables: RCA Ebitda was €10 m, reflecting seasonally low irradiation and lower generation YoY, which were more than offset by a higher realised sale price.
Group RCA Ebit was €497 m, mostly following RCA Ebitda, whilst RCA Net Income amounted to €192 m.
Galp's adjusted operating cash flow (OCF) was €266 m, reflecting the sound operating performance although considering phasing on income paid taxes in Brazil during the first quarter. Cash flow from operations (CFFO) reached €-271 m as result of a material working capital build related to a momentary increase in refining inventories, following adverse weather conditions, and a normalisation of receivables balance from Upstream sold cargoes when compared to 2024-end.
Net capex in the period resulted in an inflow of €487 m, as investments directed mainly to Upstream (Mopane in Namibia and Bacalhau in Brazil) and Industrial low-carbon projects were more than offset by divestment proceeds of €870 m mostly related to the completion of Area 4 Mozambique stake sale, but also including the final earn-out from the Angola Upstream assets disposal.
Net debt stood at €1.2 bn, after minorities of €90 m and share repurchases of €39 m related to the 2025 buyback programme commenced in February.
Short term outlook
Galp is maintaining all its macroeconomic assumptions, as well as financial and operational guidance for the 2025-26 period unchanged.
In Upstream, full year production guidance is unchanged at ≥105 kboepd, with stoppage days during 1Q25 having already represented over 40% of the full year maintenance plan.
In Industrial & Midstream the refining system is expected to operate at full availability, with crude inventories build-up in 1Q25 expected to start diluting given increased runs. Midstream is expected to benefit from higher NG/LNG supply & trading volumes, following the start of commercial deliveries from Venture Global's Calcasieu Pass LNG export facility in the U.S..
In Commercial, oil products sales and convenience contribution should reflect its normal seasonality, with volumes and earnings expected up in 2Q25 and 3Q25 following higher economic activity in Iberia during the summer quarters.
In Renewables, 2Q25 generation is expected to substantially increase QoQ given summer seasonality and benefitting from the increased operating capacity.
In 2Q25, subject to approval at the Annual Shareholder Meeting, Galp expects to execute the second interim dividend payment relative to 2024 of €0.34/shr.
Financial data
€m (RCA, except otherwise stated)
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| RCA Ebitda | 939 | 688 | 669 | (29%) |
| Upstream | 569 | 437 | 385 | (32%) |
| Industrial & Midstream | 304 | 182 | 218 | (28%) |
| Commercial | 62 | 72 | 61 | (2%) |
| Renewables | 9 | 9 | 10 | 12% |
| Corporate & Others | (5) | (11) | (4) | (3%) |
| RCA Ebit | 761 | 347 | 497 | (35%) |
| Upstream | 470 | 267 | 291 | (38%) |
| Industrial & Midstream | 275 | 148 | 192 | (30%) |
| Commercial | 32 | 4 | 30 | (6%) |
| Renewables | (2) | (50) | (3) | 49% |
| Corporate & Others | (14) | (22) | (12) | (14%) |
| RCA Net income | 325 | 71 | 192 | (41%) |
| Special items | 85 | 19 | 171 | n.m. |
| Inventory effect | (35) | (56) | (1) | (98%) |
| IFRS Net income | 374 | 34 | 362 | (3%) |
| Adjusted operating cash flow (OCF) | 559 | 393 | 266 | (52%) |
| Cash flow from operations (CFFO) | 395 | 917 | (271) | n.m. |
| Net Capex | (299) | (541) | 487 | n.m. |
| Free cash flow (FCF) | 50 | 304 | 186 | n.m. |
| Dividends paid to non-controlling interests | (2) | (69) | (90) | n.m. |
| Dividends paid to Galp shareholders | - | - | - | n.m. |
| Share buybacks | (48) | (27) | (39) | (19%) |
| Net debt | 1,506 | 1,207 | 1,226 | (19%) |
| Net debt to RCA Ebitda1 | 0.45x | 0.40x | 0.44x | n.m. |
1Ratio considers the LTM Ebitda RCA (€2,791 m), which includes an adjustment for the impact from the application of IFRS 16 (€236 m).
Operational data
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Working interest production1 (kboepd) | 107 | 110 | 104 | (3%) |
| Upstream oil realisations indicator (USD/bbl) | 79.1 | 71.8 | 72.2 | (9%) |
| Upstream gas realisations indicator (USD/boe) | 35.2 | 33.8 | 34.7 | (2%) |
| Raw materials processed in refinery (mboe) | 22.5 | 22.3 | 21.6 | (4%) |
| Galp refining margin (USD/boe) | 12.0 | 5.2 | 5.6 | (53%) |
| Oil products supply2 (mton) |
3.7 | 3.9 | 3.6 | (3%) |
| NG/LNG supply & trading volumes2 (TWh) |
11.9 | 11.8 | 13.4 | 13% |
| Oil Products - client sales (mton) | 1.6 | 1.8 | 1.6 | 2% |
| Natural gas - client sales (TWh) | 4.2 | 4.3 | 4.7 | 13% |
| Electricity - client sales (TWh) | 1.7 | 1.8 | 2.0 | 17% |
| Equity renewable power generation (GWh) | 404 | 346 | 380 | (6%) |
| Renewables' realised sale price (EUR/MWh) | 56 | 71 | 70 | 23% |
1 Reflects only Brazil's production following the divestment from Area 4 in Mozambique.
2 Includes volumes sold to the Commercial segment.
Market indicators
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Exchange rate EUR:USD | 1.09 | 1.07 | 1.05 | (3%) |
| Exchange rate EUR:BRL | 5.38 | 6.22 | 6.16 | 15% |
| Dated Brent price (USD/bbl) | 83.2 | 74.7 | 75.7 | (9%) |
| Iberian MIBGAS natural gas price (EUR/MWh) | 27.4 | 43.5 | 46.8 | 71% |
| Dutch TTF natural gas price (EUR/MWh) | 27.4 | 42.8 | 47.0 | 71% |
| Japan/Korea Marker LNG price (EUR/MWh) | 28.7 | 44.8 | 44.0 | 53% |
| Diesel 10 ppm CIF NWE Crack (USD/ton) | 216.8 | 122.9 | 142.2 | (34%) |
| EuroBob NWE FOB BG Crack (USD/ton) | 176.0 | 118.9 | 122.8 | (30%) |
| Iberian power baseload price (EUR/MWh) | 44.9 | 94.6 | 85.3 | 90% |
| Iberian solar market price (EUR/MWh) | 30.8 | 73.9 | 60.8 | 97% |
| Iberian oil market (mton) | 15.5 | 16.4 | 10.3 | (33%) |
| Iberian natural gas market (TWh) | 99.9 | 99.8 | 101.4 | 2% |
Source: Platts for commodities prices; MIBGAS for Iberian natural gas price; APETRO and CORES for Iberian oil market; REN and Enagás for Iberian natural gas market; OMIE and REE for Iberian pool price and solar captured price.
2.1 Upstream
€m (RCA, except otherwise stated; unit figures based on net entitlement production)
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Working interest production1 (kboepd) |
107 | 110 | 104 | (3%) |
| Oil production (kbpd) | 96 | 96 | 91 | (5%) |
| Gas production (kboepd) | 12 | 14 | 14 | 15% |
| Realisations indicators2 | ||||
| Oil (USD/bbl) | 79.1 | 71.8 | 72.2 | (9%) |
| Gas (USD/boe) | 35.2 | 33.8 | 34.7 | (2%) |
| Royalties (USD/boe) | 7.2 | 6.5 | 6.7 | (7%) |
| Production costs (USD/boe) | 2.5 | 2.8 | 2.6 | 6% |
| DD&A3 (USD/boe) |
11.0 | 10.9 | 10.5 | (4%) |
| RCA Ebitda | 569 | 437 | 385 | (32%) |
| Depreciation, Amortisation, Impairments and Provisions | (99) | (170) | (94) | (5%) |
| RCA Ebit | 470 | 267 | 291 | (38%) |
| IFRS Ebit | 551 | 349 | 433 | (21%) |
Note: Reflects only Brazil's production following the divestment from Area 4 in Mozambique.
1 Includes natural gas exported; excludes natural gas used or reinjected.
2 Oil realisation indicator is estimated based on the differential to the average Brent price of the period when each of Galp's oil cargoes were negotiated, deducted from logistic costs associated with its delivery. Gas realisation indicator represents the revenues collected from the equity gas sold during the period net of all gas delivery and treatment costs. 3 Includes abandonment provisions. 4Q24 unit figures exclude impairments of €67 m related with exploration and appraisal assets in Brazil.
First quarter 2025
Production in Brazil was 104 kboepd, 3% lower YoY, mostly reflecting increased planned maintenance activities. Natural gas accounted for 13% of production.
Oil realisations discount to average Brent was of \$-3.6/bbl. Production costs were \$2.6/boe on a net entitlement basis, or €24 m, marginally up YoY.
RCA Ebitda was €385 m, down YoY, following lower production and realisations, as well as reflecting an increase of volumes produced but not yet sold (in-transit).
Amortisation, depreciation and provision charges (including right-of-use of assets) were €94 m, whilst unit DD&A was \$10.5/boe. IFRS 16 lease costs accounted for €34 m during the period.
RCA Ebit was €291 m. IFRS Ebit amounted to €433 m, considering special items related to the completion of Mozambique Area 4 divestment.
2.2 Industrial & Midstream
€m (RCA, except otherwise stated)
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Raw materials processed (mboe) | 22.5 | 22.3 | 21.6 | (4%) |
| Galp refining margin (USD/boe) | 12.0 | 5.2 | 5.6 | (53%) |
| Refining cost (USD/boe) | 1.7 | 2.6 | 3.0 | 71% |
| Oil products supply1 (mton) |
3.7 | 3.9 | 3.6 | (3%) |
| NG/LNG supply & trading volumes1 (TWh) |
11.9 | 11.8 | 13.4 | 13% |
| Trading (TWh) | 4.2 | 5.7 | 7.1 | 68% |
| RCA Ebitda | 304 | 182 | 218 | (28%) |
| Depreciation, Amortisation, Impairments and Provisions | (29) | (34) | (27) | (9%) |
| RCA Ebit | 275 | 148 | 192 | (30%) |
| IFRS Ebit | 232 | 73 | 187 | (20%) |
1 Includes volumes sold to the Commercial segment.
First quarter 2025
Raw materials processed in the refinery reached 22 mboe, 4% down YoY, following momentary operational disruptions caused by adverse weather conditions in Sines.
Crude oil accounted for 88% of raw materials processed, of which 67% corresponded to medium and heavy crudes. On the refinery yields during the period, middle distillates (diesel, bio-diesel and jet) accounted for 45% of production, light distillates (gasolines and naphtha) accounted for 27% and fuel oil for 17%. Consumption and losses represented 8%.
Galp's refining margin was \$5.6/boe, down YoY, following a less supportive international oil products' cracks environment, particularly in middle distillates. Refining costs were €60 m, or \$3.0/boe in unit terms, up YoY, with higher logistics costs from demurrages as result of the temporary limitations to operations.
Total supply of oil products decreased YoY to 3.6 mton, given the lower utilisation of the refining system and the resulting reduction in diesel exports. Exports represented 31% of volumes.
Supply and trading volumes of natural gas and LNG reached 13.4 TWh, higher YoY, reflecting the continued growth of operations in Brazil.
RCA Ebitda was €218 m, with a sound refining performance as well as the continued robust Midstream contribution from supply and trading activities across gas, oil and power.
RCA Ebit was €192 m, whilst IFRS Ebit was €187 m, with inventory effects and special items of €-5 m.
Other highlights
Galp lifted the first LNG cargo from Venture Global LNG on April 15, 2025, under its sales and purchase agreement (SPA).
This first cargo signals the start of the take-or-pay rights and obligations set forth in the 20-year SPA, signed in May 2, 2018, with Venture Global LNG, for 1 mtpa, from the Calcasieu Pass LNG export facility in Louisiana, U.S..
2.3 Commercial
€m (RCA, except otherwise stated)
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Commercial sales to clients | ||||
| Oil products (mton) | 1.6 | 1.8 | 1.6 | 2% |
| Natural Gas (GWh) | 4.2 | 4.3 | 4.7 | 13% |
| Electricity (GWh) | 1.7 | 1.8 | 2.0 | 17% |
| RCA Ebitda | 62 | 72 | 61 | (2%) |
| Depreciation, Amortisation, Impairments and Provisions | (31) | (68) | (31) | 3% |
| RCA Ebit | 32 | 4 | 30 | (6%) |
| IFRS Ebit | 33 | (1) | 29 | (13%) |
First quarter 2025
Oil products' sales were up 2% YoY, at 1.6 mton, driven by higher sales in Spain across both B2B and B2C segments.
Natural gas sales were 4.7 TWh, 13% higher YoY, mainly supported by the Iberian B2B segment.
Electricity sales were up 17% YoY, to 2.0 TWh, with the growing client base in Iberia reflecting higher B2B and B2C sales.
In electric mobility, operating charging points in operations reached c.6,900 by the end of the period, a 56% YoY increase.
RCA Ebitda was €61 m, flat YoY, with the improved performance from slightly higher oil products sales offset by weaker contributions from the gas and power segments. Convenience & Energy Solutions represented 44% of the divisional Ebitda.
RCA Ebit was €30 m, whilst IFRS Ebit was €29 m.
9
2.4 Renewables
€m (RCA, except otherwise stated)
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Renewable installed capacity1 (GW) | 1.4 | 1.5 | 1.5 | 8% |
| Renewable power generation (GWh) | 404 | 346 | 380 | (6%) |
| Galp realised sale price (EUR/MWh) | 56 | 71 | 70 | 23% |
| RCA Ebitda | 9 | 9 | 10 | 12% |
| Depreciation, Amortisation, Impairments & Provisions | (11) | (59) | (13) | 19% |
| RCA Ebit | (2) | (50) | (3) | 49% |
| IFRS Ebit | (2) | (50) | (2) | (10%) |
1 Installed capacity at the end of the period.
First quarter 2025
Renewable energy generation reached 380 GWh, 6% down YoY, in a quarter with lower than usual irradiation aggravated by increased voluntary technical curtailments. Installed capacity at the end of the period stood unchanged at 1.5 GW.
Realised sale price was €70/MWh, a 23% YoY increase, driven by more supportive power prices and bolstered by the contribution of ancillary services, resulting in realisations above the market average.
RCA Ebitda was €10 m, marginally up YoY as improved realisations offset the lower generation. RCA Ebit was €-3 m.
3.1 Income Statement
€m (RCA, except otherwise stated)
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Turnover | 5,075 | 4,906 | 4,807 | (5%) |
| Cost of goods sold | (3,583) | (3,616) | (3,565) | (1%) |
| Supply & Services | (473) | (538) | (524) | 11% |
| Personnel costs | (105) | (110) | (117) | 12% |
| Other operating revenues (expenses) | 24 | 46 | 72 | n.m. |
| Impairments on accounts receivable | 1 | 1 | (4) | n.m. |
| RCA Ebitda | 939 | 688 | 669 | (29%) |
| IFRS Ebitda | 994 | 700 | 816 | (18%) |
| Depreciation, Amortisation, Impairments and Provisions | (179) | (342) | (172) | (4%) |
| RCA Ebit | 761 | 347 | 497 | (35%) |
| IFRS Ebit | 796 | 349 | 634 | (20%) |
| Net income from associates | (1) | 18 | 3 | n.m. |
| Financial results | (25) | (52) | (13) | (48%) |
| Net interests | (3) | (5) | (4) | 43% |
| Capitalised interest | 13 | 21 | 12 | (12%) |
| Exchange gain (loss) | (2) | (39) | 6 | n.m. |
| Interest on leases (IFRS 16) | (21) | (21) | (20) | (3%) |
| Other financial charges/income | (13) | (9) | (7) | (49%) |
| RCA Net income before taxes and non-controlling interests | 734 | 313 | 487 | (34%) |
| Taxes | (351) | (201) | (268) | (24%) |
| Taxes on oil and natural gas production1 | (159) | (99) | (148) | (7%) |
| Non-controlling interests | (58) | (40) | (27) | (53%) |
| RCA Net income | 325 | 71 | 192 | (41%) |
| Special items | 85 | 19 | 171 | n.m. |
| RC Net income - attributable to Galp Energia shareholders | 410 | 90 | 363 | (11%) |
| Inventory effect | (35) | (56) | (1) | (98%) |
| IFRS Net income - attributable to Galp Energia shareholders | 374 | 34 | 362 | (3%) |
1 Includes taxes on oil and natural gas production, such as SPT payable in Brazil.
First quarter 2025
RCA Ebitda was €669 m, reflecting the sound operating performance across businesses under a weaker macro context. IFRS Ebitda amounted to €816 m, considering an inventory effect of €-3 m and special items of €150 m, mainly related to the completion of Mozambique Area 4 divestment.
Group RCA Ebit was €497 m, following non-cash costs of €172 m.
Financial Results were €-13 m. RCA taxes amounted to €268 m, including €49 m related to FNEE and CESE.
Non-controlling interests amounts to €27 m, mostly attributed to Sinopec's stake in Petrogal Brasil.
RCA net income was €192 m. IFRS net income was €362 m, with special items of €171 m, mainly attributable to the completion of Mozambique Area 4 divestment.
3.2 Capital Expenditure
€m
| 1Q24 | 4Q24 | 1Q25 | % Var. YoY | |
|---|---|---|---|---|
| Upstream1 | 232 | 284 | 221 | (5%) |
| Industrial & Midstream | 32 | 87 | 43 | 35% |
| Commercial | 4 | 59 | 5 | 14% |
| Renewables | 6 | 57 | 22 | n.m. |
| Others | 27 | 14 | 3 | (88%) |
| Capex (economic)2 | 302 | 500 | 295 | (2%) |
1Excludes any amounts related to the Mozambique Upstream assets. Related to Namibia, 4Q24 figures include carried interests of €88 m, previously registered as Working Capital. 2 Capex figures based in change in assets during the period.
First quarter 2025
Capex totalled €295 m during the quarter, with Upstream and Industrial accounting for 75% and 15% of total investments, respectively, whilst Commercial and Renewables businesses represented the remaining.
Investments in Upstream were mostly directed towards the exploration & appraisal campaign in Namibia, which mostly included the drilling of one well and the shooting of proprietary 3D seismic, and projects under execution and development in the Brazilian pre-salt, namely Bacalhau.
Industrial & Midstream capex was directed to the ongoing construction of the HVO/SAF unit and the 100 MW electrolyser plant for green hydrogen production in the Sines' industrial complex.
Renewables investments supported the construction of solar projects and storage solutions in Iberia.
3.3 Cash Flow
€m
| 1Q24 | 4Q24 | 1Q25 | |
|---|---|---|---|
| RCA Ebitda | 939 | 688 | 669 |
| Dividends from associates | 0 | 0 | 1 |
| Taxes paid | (380) | (296) | (405) |
| Adjusted operating cash flow1 | 559 | 393 | 266 |
| Special items | 10 | 9 | (1) |
| Inventory effect | (53) | (80) | (3) |
| Changes in working capital | (122) | 596 | (533) |
| Cash flow from operations | 395 | 917 | (271) |
| Net capex | (299) | (541) | 487 |
| o.w. Divestments | 65 | 4 | 870 |
| Net financial expenses | (25) | (51) | (9) |
| IFRS 16 leases interest | (21) | (22) | (21) |
| Free cash flow | 5 0 | 304 | 186 |
| Dividends paid to non-controlling interest2 | (2) | (69) | (90) |
| Dividends paid to Galp shareholders | - | - | - |
| Share buybacks3 | (48) | (27) | (39) |
| Reimbursement of IFRS 16 leases principal | (40) | (55) | (43) |
| Others | (65) | 111 | (34) |
| Change in net debt | 106 | (264) | (19) |
1 Considers adjustments to exclude contribution from Angolan and Mozambique upstream assets, following the respective divestments.
2 Mainly dividends paid to Sinopec.
3 Related to the 2024 fiscal year, share repurchase programme for capital reduction purposes of €250 m started in February. At 31 March, Galp had acquired the equivalent to 0.35% of the current share capital.
-
First quarter 2025
Galp's OCF was €266 m, reflecting the sound operating performance although considering phasing on income paid taxes in Brazil during the first quarter of €405 m. CFFO reached €-271 m as result of a material working capital build related to a momentary increase in refining inventories, following adverse weather conditions, and a normalisation of receivables balance from Upstream sold cargoes compared to 2024-end.
Net capex in the period resulted in an inflow of €487 m, which includes divestment proceeds of €870 m mostly related to the completion of Area 4, Mozambique, stake sale as well as the final earn-out from the Angola Upstream assets disposal.
FCF amounted to €186 m. Net debt was flat by the end of the period, considering dividends to minorities of €90 m and the execution of the buyback programme for capital reduction purposes of €39 m.
3.4 Financial Position
€m
| 31 Dec. 2024 | 31 Mar. 2025 | Var. vs 31 Dec. 2024 |
|
|---|---|---|---|
| Net fixed assets | 6,887 | 6,915 | 29 |
| Right-of-use of assets (IFRS 16) | 1,215 | 1,162 | (53) |
| Working capital | 332 | 857 | 525 |
| Other assets/liabilities | (1,345) | (846) | 499 |
| Assets held for sale | 1,171 | 45 | (1,126) |
| Capital employed | 8,260 | 8,134 | (126) |
| Short term debt | 367 | 958 | 591 |
| Medium-Long term debt | 3,125 | 2,627 | (498) |
| Total debt | 3,492 | 3,585 | 9 3 |
| Cash and cash equivalents | 2,285 | 2,359 | 74 |
| Net debt | 1,207 | 1,226 | 1 9 |
| Leases (IFRS 16) | 1,414 | 1,350 | (65) |
| Equity | 5,638 | 5,558 | (81) |
| Equity, net debt and leases | 8,260 | 8,134 | (126) |
First quarter 2025
On March 31, 2025, net fixed assets were €6.9 bn, including work-in-progress of €3.0 bn, mostly related to the Upstream business.
At the end of March, assets/liabilities held for sale decreased significantly as result of the completion of Mozambique Area 4 divestment, with remaining balance attributed to the Guinea commercial position held for sale.
3.5 Financial Debt
€m (except otherwise stated)
| 31 Dec. 2024 | 31 Mar. 2025 | Var. vs 31 Dec. 2024 |
|
|---|---|---|---|
| Cash and equivalents | 2,285 | 2,359 | 74 |
| Undrawn credit facilities | 1,660 | 1,807 | 147 |
| Bonds | 2,225 | 2,225 | 0 |
| Bank loans and overdrafts | 1,268 | 1,360 | 93 |
| Net debt | 1,207 | 1,226 | 19 |
| Leases (IFRS 16) | 1,414 | 1,350 | (65) |
| Net debt to RCA Ebitda1 | 0.40x | 0.44x | 0.0x |
1Ratio considers the LTM Ebitda RCA (€2,791 m), which includes an adjustment for the impact from the application of IFRS 16 (€236 m).
On March 31, 2025, Net debt was €1,226 m. Net debt to RCA Ebitda stood at 0.44x.
At the end of the period, cash and cash equivalents were €2,359 m, whilst unused credit lines were €1,807 m, of which c.84% were contractually guaranteed with maturity longer than one year. The average cost of funding for the period, including charges for credit lines, was 3.28%.
Debt maturity profile (€ m)
3.6 Reconciliation of IFRS and RCA Figures
Ebitda by segment
| €m | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1Q25 | 1Q24 | |||||||||
| Ebitda IFRS |
Inventory effect |
RC Ebitda |
Special items |
RCA Ebitda |
Ebitda IFRS |
Inventory effect |
RC Ebitda |
Special items |
RCA Ebitda |
|
| 816 | 3 | 820 | (150) | 669 | Galp | 994 | 53 | 1,046 | (107) | 939 |
| 532 | - | 532 | (147) | 385 | Upstream | 664 | - | 664 | (95) | 569 |
| 218 | (1) | 217 | 1 | 218 | Industrial & Midstream | 266 | 48 | 314 | (10) | 304 |
| 60 | 4 | 64 | (3) | 61 | Commercial | 64 | 1 | 64 | (2) | 62 |
| 11 | - | 11 | (1) | 10 | Renewables | 9 | - | 9 | - | 9 |
| (4) | - | (4) | - | (4) | Others | (9) | 4 | (5) | - | (5) |
Ebit by segment
| €m | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1Q25 | 1Q24 | |||||||||
| Ebit IFRS | Inventory effect |
RC Ebit | Special items |
RCA Ebit | Ebit IFRS | Inventory effect |
RC Ebit | Special items |
RCA Ebit | |
| 634 | 3 | 638 | (141) | 497 | Galp | 796 | 53 | 849 | (89) | 761 |
| 433 | - | 433 | (142) | 291 | Upstream | 551 | - | 551 | (81) | 470 |
| 187 | (1) | 186 | 6 | 192 | Industrial & Midstream | 232 | 48 | 280 | (6) | 275 |
| 29 | 4 | 33 | (3) | 30 | Commercial | 33 | 1 | 33 | (2) | 32 |
| (2) | - | (2) | (1) | (3) | Renewables | (2) | - | (2) | - | (2) |
| (12) | - | (12) | - | (12) | Others | (18) | 4 | (14) | - | (14) |
3.7 Special Items
€m
18
| 1Q24 | 4Q24 | 1Q25 | |
|---|---|---|---|
| Items impacting Ebitda | (107) | (92) | (150) |
| LNG vessel subchartering | (10) | (5) | 1 |
| Angola disposal gains | - | (54) | - |
| Mozambique disposal gains | - | - | (129) |
| Ebitda - Assets/liabilities held for sale | (97) | (29) | (23) |
| Settlement of equipment rental agreements in Brazil | - | (3) | - |
| Items impacting non-cash costs | 18 | 10 | 10 |
| LNG vessel subchartering | 4 | 5 | 5 |
| DD&A-Assets/liabilities held for sale | 14 | 5 | 5 |
| Items impacting financial results | (16) | 51 | 1 |
| Gains/losses on financial investments (GGND) | - | 1 | - |
| Gains/losses on financial investments (Aurora) | - | 37 | - |
| Gains/losses on financial investments (Coral) | (7) | 2 | 3 |
| Gains/losses on financial investments (BBB) | - | 6 | 1 |
| Mozambique disposal gains | - | - | (18) |
| Financial costs - Others | 10 | 9 | 9 |
| Mark-to-Market of derivatives | (20) | (3) | 6 |
| Items impacting taxes | 23 | 10 | (43) |
| Taxes on special items | 12 | 14 | (4) |
| BRL/USD FX impact on deferred taxes in Brazil | 11 | (3) | (39) |
| Non-controlling interests | (3) | 2 | 12 |
| Total special items | (85) | (19) | (171) |
3.8 Consolidated Income Statement
| 1Q24 | 4Q24 | 1Q25 | |
|---|---|---|---|
| Sales | 4,957 | 4,777 | 4,669 |
| Services rendered | 118 | 128 | 139 |
| Other operating income | 222 | 215 | 316 |
| Operating income | 5,297 | 5,120 | 5,124 |
| Inventories consumed and sold | (3,584) | (3,650) | (3,528) |
| Materials and services consumed | (490) | (546) | (534) |
| Personnel costs | (105) | (110) | (117) |
| Impairments on accounts receivable | 1 | 1 | (4) |
| Other operating costs1 | (126) | (115) | (124) |
| Operating costs | (4,303) | (4,420) | (4,307) |
| Ebitda | 994 | 700 | 816 |
| Depreciation, Amortisation and Impairments | (197) | (341) | (182) |
| Provisions | (0) | (10) | (0) |
| Ebit | 796 | 349 | 634 |
| Net income from associates | 6 | (27) | 18 |
| Financial results | (16) | (58) | (28) |
| Interest income | 32 | 34 | 25 |
| Interest expenses | (35) | (40) | (29) |
| Capitalised interest | 13 | 21 | 12 |
| Interest on leases (IFRS 16) | (34) | (34) | (29) |
| Exchange gain (loss) | (2) | (39) | 6 |
| Mark-to-market of derivatives | 20 | 3 | (6) |
| Other financial charges/income | (10) | (4) | (7) |
| Income before taxes | 786 | 263 | 624 |
| Taxes2 | (312) | (182) | (173) |
| Windfall Taxes | - | 1 | - |
| Energy sector contribution taxes3 | (45) | (7) | (49) |
| Income before non-controlling interests | 430 | 76 | 401 |
| Income attributable to non-controlling interests | (55) | (42) | (39) |
| Net income | 374 | 34 | 362 |
1For further detail, please refer to Note 20 of the Interim Condensed Consolidated Financial Statements.
2 Includes SPT payable in Brazil.
3 Includes €7 m, €5 m and €37 m related to CESE I, CESE II and FNEE, respectively, during 2025.
3.9 Consolidated Financial Position
€m
| 31 Dec. 2024 | 31 Mar. 2025 | |
|---|---|---|
| Assets | ||
| Tangible fixed assets | 6,195 | 6,248 |
| Goodwill | 44 | 44 |
| Other intangible fixed assets | 694 | 675 |
| Rights-of-use of assets (IFRS 16) | 1,215 | 1,162 |
| Investments in associates | 109 | 106 |
| Receivables | 310 | 329 |
| Deferred tax assets | 669 | 688 |
| Financial investments | 69 | 56 |
| Total non-current assets | 9,306 | 9,309 |
| Inventories | 1,101 | 1,536 |
| Trade receivables | 1,237 | 1,455 |
| Other receivables | 837 | 1,255 |
| Other financial assets | 150 | 152 |
| Current income tax receivable | 106 | 113 |
| Cash and cash equivalents | 2,285 | 2,359 |
| Non-current assets held for sale | 1,794 | 51 |
| Total current assets | 7,511 | 6,922 |
| Total assets | 16,817 | 16,231 |
| Equity | ||
| Share capital | 753 | 753 |
| Buybacks1 | (47) | (94) |
| Reserves | 1,563 | 1,379 |
| Retained earnings | 1,379 | 2,371 |
| Net income | 1,040 | 362 |
| Total equity attributable to equity holders of the parent | 4,689 | 4,772 |
| Non-controlling interests | 950 | 785 |
| Total equity | 5,638 | 5,558 |
| Liabilities | ||
| Bank loans and overdrafts | 1,051 | 1,050 |
| Bonds | 2,075 | 1,577 |
| Leases (IFRS 16) | 1,182 | 1,127 |
| Other payables | 109 | 104 |
| Retirement and other benefit obligations | 221 | 218 |
| Deferred tax liabilities | 579 | 513 |
| Other financial instruments | 102 | 77 |
| Provisions | 1,497 | 1,514 |
| Total non-current liabilities | 6,814 | 6,180 |
| Bank loans and overdrafts | 217 | 310 |
| Bonds | 150 | 648 |
| Leases (IFRS 16) | 233 | 222 |
| Trade payables | 945 | 1,185 |
| Other payables2 | 1,755 | 1,860 |
| Other financial instruments | 111 | 75 |
| Income tax payable | 332 | 186 |
| Liabilities related to non-current assets held for sale | 622 | 6 |
| Total current liabilities | 4,365 | 4,493 |
| Total liabilities | 11,179 | 10,673 |
| Total equity and liabilities | 16,817 | 16,231 |
1 Includes own shares purchases for share cancellation purposes and for the share-based remuneration plan as part of the Company's long-term incentives (LTIs).
2For further detail, please refer to Note 13 of the Interim Condensed Consolidated Financial Statements.
st Quarter 202
April 202
Basis of Reporting
Galp's consolidated financial statements have been prepared in accordance with IFRS. The financial information in the consolidated income statement and in the consolidated financial position is reported for the quarters ended December 31, 2024, and March 31, 2025.
Galp's financial statements are prepared in accordance with IFRS, and the cost of goods sold is valued at weighted-average cost. When goods and commodity prices fluctuate, the use of this valuation method may cause volatility in results through gains or losses in inventories, which do not reflect the Company's operating performance. This is called the inventory effect.
Other factors that may affect the Company's results, without being an indicator of its true performance, are set as special items.
For the purpose of evaluating Galp's operating performance, RCA profitability measures exclude special items and the inventory effect, the latter because the cost of goods sold and materials consumed has been calculated according to the Replacement Cost (RC) valuation method.
All mark-to-market swings related with derivatives are registered as special items (starting from January 1, 2023).
With regards to risks and uncertainties, please read Part II – C. III Internal control and risk management (page 24) of Corporate Governance Report 2024, here.
st Quarter 202
April 202
| Interim Condensed Consolidated Statement of Financial Position | |
|---|---|
| Interim Condensed Consolidated Income Statement and Condensed Consolidated Statement of Comprehensive Income |
|
| Interim Condensed Consolidated Statement of Changes in Equity | |
| Interim Condensed Consolidated Statement of Cash Flows | |
| Notes to the Interim Condensed Consolidated Financial Statements | |
| 1. Corporate information 29 | |
| 2. Information about material accounting policies, judgments, estimates and changes related to the condensed consolidated financial statements 29 |
|
| 3. Segment reporting 31 | |
| 4. Tangible assets 34 | |
| 5. Goodwill and intangible assets 35 | |
| 6. Leases 35 | |
| 7. Investments in associates and joint ventures 36 | |
| 8. Inventories 36 | |
| 9. Trade and other receivables 37 | |
| 10. Other financial assets 38 | |
| 11. Cash and cash equivalents 38 | |
| 12. Financial debt 38 | |
| 13. Trade payables and other payables 39 | |
| 14. Taxes and other contributions 40 | |
| 15. Post-employment benefits 41 | |
| 16. Provisions 41 | |
| 17. Other financial instruments 42 | |
| 18. Non-controlling interests 43 | |
| 19. Revenue and income 43 | |
| 20. Costs and expenses 44 | |
| 21. Financial results 44 | |
| 22. Related party transactions 45 | |
| 23. Subsequent Events 45 | |
| 24. Approval of the financial statements 46 | |
Interim Condensed Consolidated Statement of Financial Position
Galp Energia SGPS, S.A.
Condensed Consolidated Statement of Financial Position as of 31 March 2025 and 31 December 2024
(Amounts stated in million Euros - €m)
| Assets | Notes | March 2025 | December 2024 |
|---|---|---|---|
| Non-current assets: | |||
| Tangible assets | 4 | 6,248 | 6,194 |
| Goodwill and intangible assets | 5 | 720 | 739 |
| Right-of-use of assets | 6 | 1,162 | 1,215 |
| Investments in associates and joint ventures | 7 | 106 | 109 |
| Deferred tax assets | 14.1 | 688 | 669 |
| Other receivables | 9.2 | 329 | 310 |
| Other financial assets | 10 | 56 | 69 |
| Total non-current assets: | 9,309 | 9,306 | |
| Current assets: | |||
| Inventories | 8 | 1,536 | 1,101 |
| Other financial assets | 10 | 584 | 150 |
| Trade receivables | 9.1 | 1,455 | 1,237 |
| Other receivables | 9.2 | 824 | 837 |
| Current income tax receivable | 14 | 113 | 106 |
| Cash and cash equivalents | 11 | 2,359 | 2,285 |
| Non-current assets classified as held for sale | 2.3 | 51 | 1,794 |
| Total current assets: | 6,922 | 7,511 | |
| Total assets: | 16,231 | 16,817 | |
| Equity and Liabilities | Notes | March 2025 | December 2024 |
| Equity: | |||
| Share capital and share premium | 753 | 753 | |
| Own shares | 2.5 | (94) | (47) |
| Reserves | 1,379 | 1,563 | |
| Retained earnings | 2,734 | 2,418 | |
| Total equity attributable to shareholders: | 4,772 | 4,689 | |
| Non-controlling interests | 18 | 785 | 950 |
| Total equity: | 5,558 | 5,638 | |
| Liabilities: | |||
| Non-current liabilities: | |||
| Financial debt | 12 | 2,627 | 3,125 |
| Lease liabilities | 6 | 1,127 | 1,182 |
| Other payables | 13 | 104 | 109 |
| Post-employment and other employee benefit liabilities | 15 | 218 | 221 |
| Deferred tax liabilities | 14.1 | 513 | 579 |
| Other financial instruments | 17 | 77 | 102 |
| Provisions | 16 | 1,514 | 1,497 |
| Total non-current liabilities: | 6,180 | 6,814 | |
| Current liabilities: | |||
| Financial debt | 12 | 958 | 367 |
| Lease liabilities | 6 | 222 | 233 |
| Trade payables | 13 | 1,185 | 945 |
| Other payables | 13 | 1,860 | 1,755 |
| Other financial instruments | 17 | 75 | 111 |
| Current income tax payable | 14 | 186 | 332 |
| Liabilities directly associated with non-current assets held for sale | 2.3 | 6 | 622 |
| Total current liabilities: | 4,493 | 4,365 | |
| Total liabilities: | 10,673 | 11,179 | |
| Total equity and liabilities: | 16,231 | 16,817 |
The accompanying notes form an integral part of the condensed consolidated statement of financial position and should be read in conjunction.
Interim Condensed Consolidated Income Statement and Interim Condensed Consolidated Statement of Comprehensive Income
Galp Energia SGPS, S.A.
Condensed Consolidated Income Statement and Condensed Consolidated Statement of Comprehensive Income for the three-month periods ended 31 March 2025 and 31 March 2024
(Amounts stated in million Euros - €m)
| Notes | March 2025 | March 2024 | |
|---|---|---|---|
| Sales | 19 | 4,669 | 4,957 |
| Services rendered | 19 | 139 | 118 |
| Other operating income | 19 | 316 | 222 |
| Financial income | 21 | 29 | 53 |
| Earnings from associates and joint ventures | 7/19 | 18 | 6 |
| Total revenue and income: | 5,170 | 5,355 | |
| Cost of sales | 20 | (3,528) | (3,584) |
| Supplies and external services | 20 | (534) | (490) |
| Employee costs | 20 | (117) | (105) |
| Amortisation, depreciation and impairment losses on fixed assets | 20 | (182) | (197) |
| Provision and impairment losses on other receivables | 20 | (4) | 0 |
| Other operating costs | 20 | (124) | (125) |
| Financial expenses | 21 | (57) | (69) |
| Total costs and expenses: | (4,546) | (4,569) | |
| Profit/(Loss) before taxes and other contributions: | 624 | 786 | |
| Taxes and SPT | 14.1 | (173) | (312) |
| Energy sector extraordinary contribution | 14.2 | (49) | (45) |
| Consolidated net profit/(loss) for the period | 401 | 430 | |
| Income/(Loss) attributable to: | |||
| Galp Energia, SGPS, S.A. Shareholders | 362 | 374 | |
| Non-controlling interests | 18 | 39 | 55 |
| Basic Earnings per share (in Euros) | 0.48 | 0.49 | |
| Diluted Earnings per share (in Euros) | 0.48 | 0.49 | |
| Consolidated net income/(loss) for the year | 401 | 430 | |
| Items which may be recycled in the future through net income: | |||
| Currency translation adjustments | (304) | 120 | |
| Hedging reserves | 17 | 42 | 3 |
| Income taxes related to the above items | 14 | (13) | (1) |
| Subtotal of other comprehensive income/(loss) | (274) | 123 | |
| Total Comprehensive income/(loss) for the year, attributable to: | 127 | 552 | |
| Galp Energia, SGPS, S.A. Shareholders | 127 | 478 | |
| Non-controlling interests | 0 | 74 |
The accompanying notes form an integral part of the condensed consolidated income statement and consolidated statement of comprehensive income and should be read in conjunction.
Interim Condensed Consolidated Statement of Changes in Equity
Galp Energia SGPS, S.A.
Condensed Consolidated Statement of Changes in Equity for the three-month periods ended 31 March 2025 and 31 March 2024
(Amounts stated in million Euros - €m)
| Share Capital and Share Premium |
Own | Reserves | Retained | Sub | NCI | Total | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Share Capital |
Share Premium |
shares | CTR (*) | Hedging Reserves |
Other Reserves |
earnings | Total | (**) | ||
| Balance as at 1 January 2024 | 773 | 0 | 0 | (128) | 48 | 1,529 | 2,187 4,409 | 920 | 5,329 | |
| Consolidated net profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | 374 | 374 | 55 | 430 |
| Other gains and losses recognised in | ||||||||||
| equity | 0 | 0 | 0 | 102 | 2 | 0 | 1 | 104 | 19 | 123 |
| Comprehensive income for the period |
0 | 0 | 0 | 102 | 2 | 0 | 375 | 478 | 74 | 552 |
| Dividends distributed | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (98) | (98) |
| Repurchases of shares | 0 | 0 | (98) | 0 | 0 | 0 | 0 | (98) | 0 | (98) |
| Long term incentives plan | 0 | 0 | 0 | 0 | 0 | (1) | 0 | (1) | 0 | (1) |
| Cumulative income as at 31 March 2024 - CTR with non-current asset held for sale |
0 | 0 | 0 | 154 | 0 | 0 | 0 | 154 | 0 | 154 |
| Cumulative loss at 31 March 2024 - Other CTR's |
0 | 0 | 0 | (180) | 0 | 0 | 0 | (180) | 0 | (180) |
| Balance as at 31 March 2024 | 773 | 0 | (98) | (26) | 50 | 1,528 | 2,563 4,790 | 896 | 5,685 | |
| Balance as at 1 January 2025 | 753 | 0 | (47) | 6 | (22) | 1,579 | 2,418 4,689 | 950 | 5,638 | |
| Consolidated net profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | 362 | 362 | 39 | 401 |
| Other gains and losses recognised in equity (***) |
0 | 0 | 0 | (265) | 30 | 0 | 0 | (235) | (39) | (274) |
| Comprehensive income for the period |
0 | 0 | 0 | (265) | 30 | 0 | 362 | 127 | 0 | 127 |
| Dividends distributed | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (164) | (164) |
| Repurchases of shares | 0 | 0 | (47) | 0 | 0 | 0 | 0 | (47) | 0 | (47) |
| Increase/(Decrease) in reserves | 0 | 0 | 0 | 0 | 0 | 47 | (47) | 0 | 0 | 0 |
| Long term incentives plan | 0 | 0 | 0 | 0 | 0 | 3 | 0 | 3 | 0 | 3 |
| Cumulative income as at 31 March 2025 - CTR with Non current Asset classified as held for sale |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cumulative loss at 31 March 2025 - Other CTR's |
0 | 0 | 0 | (258) | 0 | 0 | 0 | (258) | 0 | (258) |
| Balance as at 31 March 2025 | 753 | 0 | (94) | (258) | 7 | 1,630 | 2,734 4,772 | 785 | 5,558 |
The accompanying notes form an integral part of the condensed consolidated statement of changes in equity and should be read in conjunction. (*) Currency Translation Reserves
(**) Non-controlling Interests
(***) Includes an adjustment of cumulative CTR at March 2025 that was recycled to net profit for the period (€96 m), regarding the sale of upstream assets of Mozambique (Note 2.3 and Note 19).
Interim Condensed Consolidated Statement of Cash Flows
Galp Energia SGPS, S.A.
Condensed Consolidated Statement of Cash Flow for the three-month periods ended 31 March 2025 and 31 March 2024
(Amounts stated in million Euros - €m)
| Notes | March 2025 | March 2024 | |
|---|---|---|---|
| Income/(Loss) before taxation for the period | 624 | 786 | |
| Adjustments for: | |||
| Amortization, depreciation and impairment losses on fixed assets | 20 | 182 | 197 |
| Adjustments to net realisable value of inventories | 20 | 12 | (50) |
| Mark-to-market of derivatives | 17 | 6 | (20) |
| Other financial costs/income | 21 | 22 | 35 |
| Underlifting and/or Overlifting | 19/20 | (52) | (58) |
| Share of profit/(loss) of joint ventures and associates | 7 | (18) | (6) |
| Capital gain of Mozambique upstream | 2.3 | (130) | 0 |
| Others | (58) | 11 | |
| Increase / decrease in assets and liabilities: | |||
| (Increase)/decrease in inventories | (447) | 293 | |
| (Increase)/decrease in current receivables | (218) | 24 | |
| (Decrease)/increase in current payables | 241 | (348) | |
| (Increase)/decrease in other receivables, net | (63) | (14) | |
| Dividends from associates | 1 | 0 | |
| Taxes paid | 14 | (405) | (379) |
| Own shares for LTI reflected in Equity (share-based payment) | 2.5 | (8) | (49) |
| Cash flow from operating activities | (311) | 424 | |
| Capital expenditure in tangible and intangible assets | (337) | (359) | |
| Investments in associates and joint ventures, net | (19) | (16) | |
| Other investment cash inflow/(outflows), net | 37 | (30) | |
| Divestments | 2.3/9 | 875 | 0 |
| Cash flow from investing activities | 556 | (405) | |
| Loans obtained | 12 | 803 | 431 |
| Loans repaid | 12 | (706) | (627) |
| Interest paid | (10) | (26) | |
| Leases repaid | 6 | (48) | (47) |
| Interest on leases paid | 6 | (29) | (34) |
| Dividends paid to non-controlling interests | 18 | (90) | (2) |
| Acquisition of own stocks | 2.5 | (39) | (48) |
| Cash flow from financing activities | (119) | (352) | |
| (Decrease)/increase in cash and cash equivalents | 126 | (333) | |
| Currency translation differences in cash and cash equivalents | (48) | 33 | |
| Cash and cash equivalents at the beginning of the period | 11 | 2,279 | 2,071 |
| Cash and cash equivalents at the end of the period | 11 | 2,357 | 1,772 |
The accompanying notes form an integral part of the condensed consolidated statement of Cash Flow and should be read in conjunction.
Notes to the Interim Condensed Consolidated Financial Statements
1. Corporate information
Galp Energia SGPS, S.A. (the Company) has its Head Office in Lisbon, Portugal and its shares are listed on Euronext Lisbon.
2. Information about material accounting policies, judgments, estimates and changes related to the condensed consolidated financial statements
2.1. Basis of preparation
The condensed consolidated financial statements for the three-month period ended 31 March 2025 were prepared in accordance with IAS 34 - Interim Financial Reporting.
Galp Group has prepared its condensed consolidated financial statements on the basis that it will continue to operate as a going concern. The Board of Directors considers that there are no material uncertainties that may cast doubt over this assumption. The Board has formed a judgement that there is a reasonable expectation that Galp Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.
These condensed consolidated financial statements do not include all the information and disclosures required for annual financial statements, and therefore should be read in conjunction with the consolidated financial statements of the Galp Group for the year ended as of 31 December 2024.
The condensed consolidated financial statements have been prepared in millions of Euros, except where expressly indicated otherwise. Due to the effects of rounding, the totals and sub-totals of tables may not be equal to the sum of the individual figures presented.
2.2. Key accounting estimates and judgments
The forecasting of future long-term oil and gas prices, refining margins and electricity prices represents a significant estimate. Future long-term oil and gas prices, refining margins and electricity prices assumptions were not subject to change during the first three-month of 2025.
The Group performed its annual impairment test in December and when circumstances indicated that the carrying value may be impaired. The key assumptions used to determine the recoverable amount for the different cash generating units were disclosed in the annual consolidated financial statements for the year ended 31 December 2024.
We have not identified impairment indicators during the first three-month that would trigger an impairment analysis as at 31 March 2025.
2.3. Non-current assets classified as held for sale
Mozambique Upstream
Following the announcement on May 22, 2024, Galp has successfully completed, on 27 March 2025, the sale of its upstream assets in Area 4 Mozambique to XRG P.J.S.C., a wholly-owned subsidiary of Abu Dhabi National Oil Company (ADNOC) P.J.S.C..
With completion, Galp collected a payment of circa USD 881 m in 1Q25 (recognised in cash flows from investing activities, €815 m), encompassing the equity value of shares (USD 572,5 m), shareholder loans reimbursement and accumulated investments made since the transaction reference date of 31/12/2023 (locked box date). Additional contingent payments of USD 100 m and USD 400 m will be payable with the final investment decision of Coral North and Rovuma LNG, respectively.
As at 31 March 2025, the proceeds from the sale (excluding shareholder loans reimbursement and accumulated investments made since locked box date) amounts to USD 1,039 m, which includes USD 572,5 m received at transaction closing date and USD 467 m contingent to the FID (Note 10).
The capital gain was recognized in the amount of €147 m, of which €96 m related to recycling of currency translation reserves (CTR) on disposal, that was accounted as "Other operating income" (€129 m) (Note 19) and as "Earnings from associates and joint ventures" (€18 m) (Note 7.1).
Guinea Bissau
During the second quarter of 2024, Galp agreed to sell its commercial assets in Guinea Bissau and signed an agreement with Zener International Holding, S.A..
The assets and liabilities associated with the commercial business in Guinea Bissau were classified as noncurrent assets and liabilities directly associated with non-current assets held for sale, within current assets and current liabilities, respectively, in the financial position. As at 31 March 2025, the Group has received €13 m (€4 m during the period) of initial proceeds from the Guinea Bissau assets disposal (which is accounted in "Other deferred income" caption in Note 15) and expected to collect €24 m (including ticking fee) upon closing of the transaction. Completion of the transaction is expected to occur during 2025.
The assets, liabilities and accumulated conversion reserves in equity that make up the amounts presented in the financial statements on 31 March 2025 are as follows:
| Unit: € m | |
|---|---|
| March 2025 | |
| Guinea Bissau | |
| Assets: | 51 |
| Tangible assets | 12 |
| Right-of-use of assets | 2 |
| Inventories | 12 |
| Current income tax receivable | 3 |
| Cash and cash equivalents | 13 |
| Other receivables | 9 |
| Liabilities: | (6) |
| Lease liabilities | (2) |
| Other payables | (4) |
| Equity – Accumulated conversion reserves | 0 |
2.4. Changes to the consolidation perimeter
During the three-month period, Galp has entered the following main transactions:
| Legal Entity | Country | Transaction | Consolidation Method |
|---|---|---|---|
| Solar companies (2 companies) | Brazil | Merger | Merged with Galp Energia Brasil S.A. (the surviving entity) |
| Aurora Lith, S.A. | Portugal | Liquidation | - |
| Galp Rovuma, B.V. | Netherland | Sold | - |
| Galp Rovuma, B.V., branch Mozambique |
Mozambique | Sold | - |
| Coral FLNG, S.A. | Mozambique | Sold | - |
| Coral South FLNG DMCC | United Arab Emirates | Sold | - |
| Rovuma LNG, S.A. | Mozambique | Sold | - |
| Rovuma LNG Investments (DIFC) LTD. | United Arab Emirates | Sold | - |
2.5. Acquisition of own shares
Own equity instruments that are reacquired (own shares or treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group's own equity instruments.
On 28 February 2025, Galp initiated a €250 m share repurchase of Galp Energia SGPS, S.A. shares with the purpose to reduce the issued share capital of the Company. The buyback is planned to terminate at the latest by 30 January, 2026, subject to the necessary approvals. In addition, Galp will continue its share-based remuneration plan as part of the Company's long-term incentives framework applicable to the executive board members and senior managers.
During the period, 3,160,015 shares were acquired at an average price of €15.00/share, totalizing €47 m, regarding the repurchase of own shares (share buyback programme and LTI plan).
On 31 March 2025, Galp had 6,387,871 outstanding own shares (accumulated position), acquired at an average price of €15.00/share (during 2025) and €14.42/share (during 2024), totalizing €94 m for both programs.
2.6. Changes to IFRS not yet adopted
The accounting policies applied in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2024. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
One amendment (Lack of exchangeability - Amendments to IAS 21) applies for the first time in 2025 but does not have impact on the interim condensed consolidated financial statements of the Group.
2.7. Commitments and contingencies
During the three-month period of 2025, Galp Energia SGPS, S.A. provided Parent Company Guarantees amounting to €9,709 m in connection with commercial agreements entered by its subsidiaries, which reflects a reduction of circa €909 m compared to the disclosure in the consolidated financial statements for the year ended as of 31 December 2024, mainly related with foreign exchange (circa €385 m) and expired Parent Company Guarantees (circa €510 m).
In addition, Galp cancelled commitment in the amount €442 m, linked with the completion of the sale of Mozambique Upstream assets.
Contingencies
On 23 January 2025, ANP communicated the decision that the reservoirs of Berbigão and Sururu should be considered as unified for the purposes of calculating the Special Participation Tax. This interpretation from ANP results in a Special Participation Tax difference of circa \$115 m up to 31 March 2025. The decision from ANP is based on the fact that both reservoirs are currently being developed through a single FPSO, P-68.
Galp and the remaining partners of the consortium disagree with this interpretation from ANP. The appropriate legal measures for contesting this claim are currently under assessment. This tax contingency was assessed as possible (and not probable) and, as such, no provision was recognized in these interim condensed financial statements.
3. Segment reporting
The Group operates across four different operating segments based on the types of products sold and services rendered: (i) Upstream, (ii) Industrial & Midstream; (iii) Commercial and (iv) Renewables.
The Upstream segment represents Galp's presence in the upstream sector of the oil and gas industry, which involves the management of all activities relating to the exploration, development and production of hydrocarbons, mainly focused in Brazil, Mozambique 1 and Namibia.
The Industrial & Midstream segment incorporates the refining and logistics business, as well as the Group's oil, CO2, gas and power supply and trading activities. This segment also includes co-generation.
The Commercial segment integrates the entire offering to Galp's clients - business to business (B2B) and business to consumer (B2C), of oil, gas, electric mobility, power and non-fuel products. This commercial activity is focused in Iberia but also extends to certain countries in Africa2 .
The Renewables segment encompasses renewables power generation and new businesses.
1 The results (profit or loss) of Mozambique upstream entities, which were being classified as non-current assets held for sale at 31 December 2024 (Note 2.3), are included in the consolidated income statement until earlier March 2025.
2 Despite Guinea Bissau subsidiaries (ie net assets) are being classified as non-current assets held for sale (Note 2.3), their profit or loss is included in the consolidated income statement.
Besides these four business segments, the Group has also included within the category "Others" the holding company Galp Energia, SGPS, S.A. and companies with other activities including Tagus Re, S.A. and Galp Energia, S.A., a reinsurance company and a provider of shared services at the corporate level, respectively.
Segment reporting is presented on a replacement cost (RC) basis, which is the earnings metric used by the Chief Operating Decision Maker to make decisions regarding the allocation of resources and to assess performance. Based on the RC method, the current cost of sales measured under IFRS (the weighted average cost) is replaced by the crude reference price (i.e. Brent-dated) as at the balance sheet date, as though the cost of sales had been measured at the replacement cost of the inventory sold, Replacement cost adjustments affect mainly Supply and Trading regarding Oil products.
The replacement cost financial information for the segments identified above, for the three-month periods ended 31 March 2025 and 2024, is as follows:
| Unit: € m | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated | Upstream | Industrial & Midstream |
Commercial | Renewables & New businesses |
Others | Consolidation adjustments |
||||||||
| March 2025 |
March 2024 | March 2025 | March 2024 |
March 2025 |
March 2024 |
March 2025 |
March 2024 |
March 2025 |
March 2024 |
March 2025 |
March 2024 |
March 2025 |
March 2024 |
|
| Sales and services rendered Cost of sales |
4,807 (3,525) |
5,075 (3,531) |
533 15 |
920 (108) |
1,930 (1,523) |
2,144 (1,672) |
2,610 (2,313) |
2,340 (2,086) |
27 (1) |
11 12 |
63 2 |
56 (3) |
(356) 296 |
(396) 327 |
| of which Variation of Production |
(27) | (95) | (167) | (87) | 140 | (8) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other revenue & expenses | (463) | (498) | (17) | (148) | (190) | (158) | (233) | (189) | (15) | (14) | (69) | (57) | 60 | 69 |
| of which Under & Overlifting | 52 | 58 | 52 | 58 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBITDA at Replacement Cost | 820 | 1,046 | 532 | 664 | 217 | 314 | 64 | 64 | 11 | 9 | (4) | (5) | 0 | 0 |
| Amortisation, depreciation and impairment losses on fixed assets |
(182) | (197) | (99) | (113) | (31) | (34) | (31) | (30) | (13) | (11) | (7) | (9) | 0 | 0 |
| Provisions (net) | (0) | 0 | (0) | 1 | (0) | 1 | 0 | (1) | 0 | 0 | (0) | 0 | 0 | 0 |
| EBIT at Replacement Cost | 638 | 849 | 433 | 551 | 186 | 280 | 33 | 33 | (2) | (2) | (12) | (14) | 0 | 0 |
| Earnings from associates and joint ventures |
18 | 6 | 15 | 7 | 1 | (1) | 3 | 1 | (1) | (1) | 0 | 0 | 0 | 0 |
| Financial results | (28) | (16) | ||||||||||||
| Taxes and SPT at Replacement Cost |
(176) | (329) | ||||||||||||
| Energy Sector Extraordinary Contribution |
(49) | (45) | 0 | 0 | (12) | (7) | 0 | 0 | 0 | 0 | (37) | (38) | 0 | 0 |
| Consolidated net income at Replacement Cost, of which: |
402 | 465 | ||||||||||||
| Attributable to non-controlling interests |
39 | 55 | ||||||||||||
| Attributable to shareholders of Galp Energia SGPS, S.A. |
363 | 410 | ||||||||||||
| OTHER INFORMATION Segment Assets:* |
||||||||||||||
| Financial investments** | 106 | 109 | 0 | 0 | 13 | 18 | 31 | 32 | 58 | 56 | 4 | 4 | 0 | 0 |
| Other assets | 16,124 | 16,708 | 7,426 | 9,083 | 3,460 | 2,933 | 3,124 | 3,151 | 1,729 | 1,656 | 3,301 | 2,856 | (2,915) | (2,970) |
| Segment Assets: | 16,231 | 16,817 | 7,426 | 9,083 | 3,473 | 2,950 | 3,155 | 3,183 | 1,787 | 1,711 | 3,305 | 2,860 | (2,915) | (2,970) |
| of which right-of-use of assets | 1,162 | 1,215 | 544 | 589 | 222 | 232 | 203 | 205 | 111 | 106 | 81 | 82 | 0 | 0 |
| of which tangible and intangible assets |
6,969 | 6,933 | 3,878 | 3,867 | 887 | 856 | 693 | 709 | 1,416 | 1,404 | 95 | 97 | 0 | 0 |
| Investment in Tangible and Intangible Assets*** |
312 | 315 | 230 | 250 | 50 | 39 | 5 | 4 | 23 | 11 | 3 | 9 | 0 | 0 |
* Net amount as of 31 March 2025 and as of 31 December 2024
** "Investments in associates and joint ventures" (Note 7) *** Amounts as of 31 March 2025 and as of 31 March 2024, excludes abandonment provisions (March 2025: nil / March 2024: nil)
The details of sales and services rendered, tangible and intangible assets and financial investments for each geographical region in which Galp operates were as follow:
| Unit: € m | |||||||
|---|---|---|---|---|---|---|---|
| Sales and services rendered* | Tangible and intangible assets | Financial investments | |||||
| March 2025 | March 2024 | March 2025 | December 2024 | March 2025 | December 2024 | ||
| Africa | 178 | 194 | 603 | 512 | 23 | 23 | |
| Latin America | 407 | 654 | 3,345 | 3,428 | 52 | 51 | |
| Europe | 4,222 | 4,227 | 3,021 | 2,993 | 31 | 35 | |
| 4,807 | 5,075 | 6,969 | 6,933 | 106 | 109 |
* Net consolidation operation
The reconciliation between the segment reporting and the Condensed Consolidated Income Statement for the periods ended 31 March 2025 and 2024 was as follows:
| Unit: € m | ||
|---|---|---|
| March 2025 | March 2024 | |
| Sales and services rendered | 4,807 | 5,075 |
| Cost of sales | (3,528) | (3,584) |
| Replacement cost adjustments (1) | 3 | 53 |
| Cost of sales at Replacement Cost | (3,525) | (3,531) |
| Other revenue and expenses | (463) | (498) |
| Amortisation, depreciation and impairment on fixed assets | (182) | (197) |
| Earnings from associates and joint ventures | 18 | 6 |
| Financial results | (28) | (16) |
| Profit before taxes and other contributions at Replacement Cost | 628 | 839 |
| Replacement Cost adjustment | (4) | (53) |
| Profit before taxes and other contributions at IFRS | 624 | 786 |
| Income tax and SPT | (173) | (312) |
| Income tax on Replacement Cost Adjustment (2) | (3) | (18) |
| Energy Sector Extraordinary Contribution | (49) | (45) |
| Consolidated net income for the period at Replacement Cost | 402 | 465 |
| Replacement Cost (1) + (2) | (1) | (35) |
| Consolidated net income for the period based on IFRS | 401 | 430 |
4. Tangible assets
| Unit: € m | |||||
|---|---|---|---|---|---|
| Land, natural resources and buildings |
Plant and machinery |
Other equipment |
Assets under construction |
Total | |
| As at 31 March 2025 | |||||
| Acquisition cost Impairment |
1,360 (44) |
11,604 (239) |
532 (3) |
3,217 (262) |
16,713 (549) |
| Accumulated depreciation and depletion |
(823) | (8,645) | (448) | 0 | (9,915) |
| Net value | 493 | 2,719 | 82 | 2,954 | 6,248 |
| Balance as at 1 January 2025 | 489 | 2,820 | 95 | 2,789 | 6,194 |
| Additions | 0 | 0 | 0 | 310 | 310 |
| Depreciation, depletion and impairment |
(6) | (107) | (6) | 0 | (119) |
| Currency exchange differences and other adjustments |
10 | 6 | (7) | (145) | (136) |
| Balance as at 31 March 2025 | 493 | 2,719 | 82 | 2,954 | 6,248 |
During the three-month period the Group has made tangible and intangible investments amounting to €312 m, of which Upstream investments in the amount of €230 m, essentially related to projects in Brazil (€119 m) and Namibia (€110 m), Industrial & Midstream (€51 m), Renewables (€23 m), Commercial (€5 m) and Corporate (€3 m). The additions to tangible assets for the three-month period ended 31 March 2025 also include the capitalization of financial charges amounting to €12 m (Note 21).
5. Goodwill and intangible assets
| Unit: € m | ||||
|---|---|---|---|---|
| Industrial properties and other rights |
Intangible assets in progress |
Goodwill | Total | |
| As at 31 March 2025 | ||||
| Acquisition cost | 1,338 | 90 | 87 | 1,515 |
| Impairment | (140) | (29) | (43) | (212) |
| Accumulated amortisation | (582) | 0 | 0 | (582) |
| Net value | 615 | 61 | 44 | 720 |
| Balance as at 1 January 2025 | 630 | 65 | 44 | 739 |
| Additions | (1) | 3 | 0 | 2 |
| Amortisation and impairment | (11) | 0 | 0 | (11) |
| Transfers | 9 | (9) | 0 | 0 |
| Currency exchange differences and other adjustments |
(12) | 1 | 0 | (10) |
| Balance as at 31 March 2025 | 615 | 61 | 44 | 720 |
During the three-month period the Group has made €2 m of intangible investments (Note 4).
6. Leases
| Unit: € m | ||||||
|---|---|---|---|---|---|---|
| FPSO's* | Buildings | Service stations |
Time Charter |
Other usage rights |
Total | |
| As at 31 March 2025 | ||||||
| Acquisition cost | 730 | 109 | 408 | 367 | 382 | 1,997 |
| Impairment | 0 | 0 | (39) | 0 | (0) | (39) |
| Accumulated depreciation | (289) | (29) | (171) | (195) | (112) | (796) |
| Net value | 441 | 80 | 198 | 172 | 270 | 1,162 |
| Balance as at 1 January 2025 | 472 | 81 | 201 | 196 | 266 | 1,215 |
| Additions | 0 | 2 | 8 | (1) | 10 | 19 |
| Depreciation | (16) | (2) | (11) | (17) | (6) | (52) |
| Currency exchange differences and other adjustments |
(14) | 0 | 0 | (6) | 0 | (20) |
| Balance as at 31 March 2025 | 441 | 80 | 198 | 172 | 270 | 1,162 |
* Floating, production, storage and offloading unit – floating oil production system, built on a ship structure, with a capacity for oil and natural gas production processing, liquid storage and transfer of oil to tankers.
Lease liabilities are as follows:
| Unit: € m | ||
|---|---|---|
| March 2025 | December 2024 | |
| Less than one year | 258 | 253 |
| One to five years | 736 | 747 |
| More than five years | 842 | 858 |
| Maturity analysis – contractual undiscounted cash flow | 1,837 | 1,859 |
| Current | 222 | 233 |
| Non-current | 1,127 | 1,182 |
| Lease liabilities included in the consolidated statement of financial position | 1,350 | 1,414 |
The amounts recognized in consolidated profit or loss were as follows:
| Unit: € m | |||
|---|---|---|---|
| Notes | March 2025 | March 2024 | |
| Interest on lease liabilities | 21 | 29 | 34 |
| Expenses related to short term, low value and variable payments of operating leases |
98 | 94 | |
| 127 | 127 |
Amounts recognized in the consolidated statement of cash flow were as follows:
| Unit: € m | ||
|---|---|---|
| March 2025 | March 2024 | |
| Payments relating to leasing (IFRS 16) | 48 | 47 |
| Payments relating to leasing (IFRS 16) interests | 29 | 34 |
| Financing activities | 77 | 81 |
7. Investments in associates and joint ventures
| Unit: € m | ||
|---|---|---|
| March 2025 | December 2024 | |
| Joint ventures | 5 | 10 |
| Associates | 101 | 99 |
| 106 | 109 |
7.1. Investments in joint ventures
| Unit: € m | ||||||
|---|---|---|---|---|---|---|
| As at 31 December 2024 |
Equity method |
Foreign exchange rate differences |
Other adjustments |
Dividends | As at 31 March 2025 |
|
| C,L,C, - Companhia Logística de Combustíveis, S.A. |
9 | 1 | 0 | 0 | (6) | 5 |
| 10 | 1 | 0 | 0 | (6) | 5 |
In March 2025, "Earnings from associates and joint ventures" includes the Coral FLNG, S.A. share of results (loss) of the period until transaction closing date, in the amount of €3 m (loss), and part of the capital gain resulting from the completion of the sale, in the amount of €18 m (Note 2.3).
7.2. Investments in associates
| As at 31 December 2024 |
Share capital increase/ decrease |
Equity method |
Foreign exchange rate differences |
Other adjustments |
Dividends | Unit: € m As at 31 March 2025 |
|
|---|---|---|---|---|---|---|---|
| Belém Bioenergia Brasil, S.A. |
51 | 0 | (1) | 2 | 0 | 0 | 52 |
| Floene Energias, S.A. | 7 | 0 | 0 | 0 | 0 | 0 | 7 |
| Sonangalp - Sociedade de Distribuição e Comercialização de Combustíveis, Lda. |
10 | 0 | 1 | 0 | 0 | 0 | 11 |
| CMD – Aeroportos Canarios S.L. |
8 | 0 | 1 | 0 | (1) | (1) | 8 |
| Other associates | 23 | 2 | 0 | (1) | 0 | 0 | 24 |
| 99 | 2 | 2 | 1 | (1) | (1) | 101 |
Refer to Note 22 for details on the nature of the transactions and balances.
8. Inventories
| Unit: € m | ||
|---|---|---|
| March 2025 | December 2024 | |
| Raw, subsidiary and consumable materials | 504 | 373 |
| Crude oil | 154 | 16 |
| Crude oil in transit | 303 | 316 |
| Other raw materials | 47 | 42 |
| Finished and semi-finished products | 617 | 511 |
| Finished and semi-finished products in transit | 15 | 0 |
| Goods | 248 | 240 |
| Goods in transit | 187 | 0 |
| Write-downs | (35) | (23) |
| 1,536 | 1,101 |
The movements in the adjustments to Net Realizable Value (NRV) balance for the three-month period ended 31 March 2025 were as follows:
| Unit: € m | |||||
|---|---|---|---|---|---|
| Notes | Raw, subsidiary and consumable materials |
Finished and semi finished products |
Goods | Total | |
| Write-down as at 1 January 2025 | 5 | 6 | 12 | 23 | |
| Net reductions | 20 | 1 | 11 | 1 | 12 |
| Write-down as at 31 March 2025 | 5 | 17 | 13 | 35 |
The reduction of €12 m was recognized in the caption cost of sales being part of the consolidated Profit and Loss (Note 20). This variation, which resulted on the application on the NRV, was caused by the price fluctuation in the markets during the period.
9. Trade and other receivables
9.1. Trade receivables
| Unit: € m | ||
|---|---|---|
| March 2025 | December 2024 | |
| Current | Current | |
| Trade receivables | 1,558 | 1,337 |
| Allowance for doubtful amounts | (103) | (99) |
| 1,455 | 1,237 | |
| Movements in allowance for doubtful trade receivables | ||
| As at 1 January 2025 | 99 | 111 |
| Increase/(Decrease) | 4 | 6 |
| Utilisation | (1) | (4) |
| Other adjustments | 0 | (13) |
| As at 31 March 2025 | 103 | 99 |
Increase and decreases of impairment of trade receivables are related with the reassessments of customers' credit risk levels.
9.2. Other receivables
| Unit: € m | |||||
|---|---|---|---|---|---|
| March 2025 | December 2024 | ||||
| Notes | Current | Non-current | Current | Non-current | |
| State and other Public Entities | 83 | 0 | 91 | 0 | |
| Other debtors | 320 | 258 | 268 | 238 | |
| Non-operated oil blocks | 3 | 0 | 3 | 0 | |
| Underlifting | 157 | 0 | 110 | 0 | |
| Other receivables | 161 | 258 | 155 | 238 | |
| Related Parties | 6 | 0 | 0 | 0 | |
| Contract Assets | 281 | 53 | 353 | 53 | |
| Sales and services rendered but not yet invoiced | 230 | 0 | 222 | 0 | |
| Adjustment to tariff deviation – "pass through" | 27 | 0 | 26 | 0 | |
| Other accrued income | 23 | 53 | 104 | 53 | |
| Deferred charges | 146 | 18 | 138 | 19 | |
| Energy sector extraordinary contribution | 14.2 | 5 | 4 | 5 | 5 |
| Deferred charges for services | 12 | 10 | 7 | 10 | |
| Post employment benefit assets | 15 | 0 | 2 | 0 | 2 |
| CO2 licenses |
78 | 0 | 76 | 0 | |
| Other deferred charges | 51 | 2 | 50 | 2 | |
| Impairment of other receivables | (13) | 0 | (13) | 0 | |
| Other receivables | 824 | 329 | 837 | 310 | |
| Movements in allowance for doubtful other receivables | |||||
| Allowance at the beginning of the year | 13 | 0 | 10 | 0 | |
| Increase/(Decrease) | 0 | 0 | (13) | 0 | |
| Utilisation | 0 | 0 | (1) | 0 | |
| Other adjustments | 0 | 0 | 17 | 0 | |
| Allowance at the end of the year | 13 | 0 | 13 | 0 |
Other receivables (non-current) include an amount of €253 m (2024: €233 m) relating to a judicial deposit regarding the lawsuit between BM-S-11 consortium and the ANP, ANP claims that the oil fields of Tupi and Iracema, which are located within the BM-S-11, should be unified for Special Participation Tax purposes. However, the consortium has a different understanding. Thus, the judicial deposit represents part of the difference between the two criteria under discussion.
CO2 licenses (current) include the amount of €78 m (2024: €76 m) related to the remaining CO2 licenses after satisfying the legal obligations regarding CO2 emissions.
Other accrued income (current) mainly includes accruals regarding other operating revenue while non-current includes natural gas tariffs deviations from regulated market. During the period, the amount of €56 m related to additional proceeds (contingent consideration) in connection with the sale of Angola Upstream assets, was received and has been recognised in cash flows from investing activities (divestments).
10. Other financial assets
As at 31 March 2025 and 31 December 2024 Other financial assets were as follow:
| Unit: € m | |||||
|---|---|---|---|---|---|
| March 2025 | December 2024 | ||||
| Notes | Current | Non-current | Current | Non-current | |
| Financial Assets at fair value through profit & loss – derivatives |
17 | 113 | 42 | 110 | 55 |
| Financial Assets at fair value through profit & loss – Contingent consideration |
2.3 | 432 | 0 | 0 | 0 |
| Financial Assets at fair value through comprehensive income |
0 | 1 | 0 | 1 | |
| Financial Assets not measured at fair value – Loans and Capital subscription |
39 | 1 | 41 | 1 | |
| Others | 0 | 11 | 0 | 12 | |
| 584 | 56 | 150 | 69 |
Financial assets at fair value through profit or loss – Contingent consideration relates to amounts arising on disposal of Mozambique Upstream assets (Note 2.3), amounting to €432 m (\$467 m), which are financial assets classified as measured at fair value through profit or loss. The fair value is determined using an estimate of discounted cash flows that are expected to be received and is considered a level 3 valuation under the fair value hierarchy. The discount rate used is based on a risk-free rate adjusted for cash flows-specific risks.
11. Cash and cash equivalents
| Unit: € m | |||
|---|---|---|---|
| Notes | March 2025 | December 2024 | |
| Cash in banks | 2,359 | 2,285 | |
| Bank overdrafts | 12 | (2) | (6) |
| 2,357 | 2,279 |
12. Financial debt
| Unit: € m | |||||
|---|---|---|---|---|---|
| March 2025 | December 2024 | ||||
| Notes | Current | Non-current | Current | Non-current | |
| Bank loans | 310 | 1,050 | 217 | 1,051 | |
| Loans and commercial paper | 304 | 1,039 | 206 | 1,039 | |
| Factoring | 4 | 11 | 5 | 11 | |
| Bank overdrafts | 11 | 2 | 0 | 6 | 0 |
| Bonds and notes | 648 | 1,577 | 150 | 2,075 | |
| Origination fees | (2) | (3) | 0 | (5) | |
| Bonds and notes | 650 | 1,580 | 150 | 2,080 | |
| Debt | 958 | 2,627 | 367 | 3,125 |
Unit: € m Initial balance Loans obtained Principal repayment Changes in Overdrafts Ending Balance Bank Loans: 1,268 803 (706) (4) 1,360 Loans and commercial paper 1,245 803 (705) 0 1,343 Factoring 16 0 (1) 0 15 Bank overdrafts 6 0 0 (4) 2 Bonds and Notes: 2,225 0 0 0 2,225 Origination fees (5) 0 0 0 (5) Bonds and Notes 2,230 0 0 0 2,230 3,492 803 (706) (4) 3,585
Changes in financial debt during the period from 31 December 2024 to 31 March 2025 were as follows:
The annual average cost of financial debt for the period under review, including charges for credit lines, amounted to 3.28%.
Financial debt, excluding origination fees and bank overdrafts, had the following repayment plan as at 31 March 2025:
| Unit: € m | |||
|---|---|---|---|
| Loans | |||
| Maturity | Total | Current | Non-current |
| 2025 | 458 | 458 | 0 |
| 2026 | 753 | 500 | 253 |
| 2027 | 1,021 | 0 | 1,021 |
| 2028 | 252 | 0 | 252 |
| 2029 onwards | 1,104 | 0 | 1,104 |
| 3,588 | 958 | 2,630 |
13. Trade payables and other payables
| Unit: € m | |||||
|---|---|---|---|---|---|
| March 2025 | December 2024 | ||||
| Current | Non-current | Current | Non-current | ||
| Suppliers | 1,185 | 0 | 945 | 0 | |
| State and other public entities | 416 | 0 | 402 | 0 | |
| Payable VAT | 266 | 0 | 257 | 0 | |
| "ISP" - Tax on oil products | 103 | 0 | 123 | 0 | |
| Other taxes | 47 | 0 | 22 | 0 | |
| Other creditors | 273 | 39 | 283 | 40 | |
| Tangible and intangible suppliers | 138 | 39 | 134 | 40 | |
| Overlifting | 23 | 0 | 24 | 0 | |
| Other creditors | 113 | 0 | 124 | 0 | |
| Related parties | 137 | 0 | 62 | 0 | |
| Other accounts payables | 103 | 24 | 104 | 24 | |
| Accrued costs | 881 | 19 | 877 | 23 | |
| External supplies and services | 668 | 0 | 673 | 0 | |
| Holiday, holiday subsidy and | |||||
| corresponding contributions | 126 | 1 | 101 | 2 | |
| Other accrued costs | 87 | 18 | 103 | 21 | |
| Contract liabilities | 33 | 0 | 19 | 0 | |
| Other deferred income | 17 | 22 | 7 | 22 | |
| Other payables | 1,860 | 104 | 1,755 | 109 |
"Related parties" includes dividend to be paid to non-controlling interest (Note 18 and 22).
14. Taxes and other contributions
14.1. Taxes and Special Participation Tax (SPT)
The Group operations take place in several regions and are carried out by various legal entities, subject to locally established income tax rates, varying between 25% in Spain, 25.8% in the Netherlands, 30.5% in Portugal (before Energy sector extraordinary contribution and Windfall tax), and 34% in Brazil.
Group companies headquartered in Portugal in which the Group has an interest equal to or greater than 75%, if such participation grants voting rights of more than 50%, are taxed in accordance with the special regime for the taxation of groups of companies, with the taxable income being determined at the level of Galp Energia, SGPS, S.A..
Spanish tax resident companies, in which the percentage held by the Group exceeds 75%, are taxed on a consolidated basis in Spain since 2005, Currently, fiscal consolidation in Spain is performed by Galp Energia España, S.A..
As of 31 March 2025 and 31 December 2024, the current income tax receivable and payable is as follows:
| Unit: € m | ||
|---|---|---|
| March 2025 | December 2024 | |
| Current income tax receivable | 113 | 106 |
| Current income tax payable | (186) | (332) |
| (73) | (226) |
The total taxes paid during the period was €405 m (March 2024: €379 m), of which €138 m related to SPT, €261 m related to income tax, and €6 m related to extraordinary taxes contributions.
Taxes and SPT recognized in the condensed consolidated income statement for the three-month periods ended 31 March 2025 and 2024 were as follows:
| Unit: € m | ||||||
|---|---|---|---|---|---|---|
| March 2025 | March 2024 | |||||
| Current tax | Deferred tax | Total | Current tax | Deferred tax | Total | |
| Current income tax | 140 | (97) | 43 | 152 | (7) | 145 |
| "IRP" – Oil Income Tax | 0 | 0 | 0 | 12 | (4) | 8 |
| "SPT" – Special Participation Tax |
130 | 0 | 130 | 159 | 0 | 159 |
| Taxes for the year | 271 | (97) | 173 | 323 | (11) | 312 |
As at 31 March 2025, the movements in deferred tax assets and liabilities were as follows:
| Unit: € m | |||||
|---|---|---|---|---|---|
| As at 1 January 2025 |
Impact on the income statement |
Impact on equity |
Foreign exchange rate changes |
As at 31 March 2025 |
|
| Adjustments to tangible and intangible assets | 295 | 17 | 0 | 0 | 311 |
| Retirement benefits and other benefits | 62 | (1) | 0 | 0 | 62 |
| Tax losses carried forward | 3 | 0 | 0 | 0 | 3 |
| Regulated revenue | 7 | 0 | 0 | 0 | 7 |
| Temporarily non-deductible provisions | 223 | 0 | 0 | 2 | 225 |
| Others | 79 | 1 | 0 | 0 | 80 |
| Deferred Taxes – Assets | 669 | 17 | 0 | 2 | 688 |
| Adjustments to tangible and intangible assets | (612) | 74 | 0 | 0 | (537) |
| Regulated revenue | (13) | (1) | 0 | 0 | (14) |
| Others | 46 | 6 | (13) | 0 | 39 |
| Deferred Taxes – Liabilities | (579) | 80 | (13) | 0 | (513) |
14.2. Energy Sector Extraordinary Contribution
| Unit: € m | |||||
|---|---|---|---|---|---|
| Statement of financial position | Income statement | ||||
| Provisions (Note 16) |
CESE II - Deferred Charges (Note 9.2) |
Energy Sector Extraordinary |
|||
| CESE I | CESE II | Current | Non-current | Contribution | |
| As at 1 January 2025 | (73) | (275) | 5 | 5 | 0 |
| Increase | (7) | (4) | 0 | 0 | 49 |
| Decrease | 0 | 0 | (0) | (1) | 0 |
| Utilisation | (0) | 0 | 0 | 0 | 0 |
| Other adjustments | (0) | 0 | 0 | 0 | 0 |
| As at 31 March 2025 | (80) | (279) | 5 | 4 | 49 |
During the period a cost of €49 m was recognized as "Energy Sector Extraordinary Contribution" (which includes CESE I and II and FNEE).
15. Post-employment benefits
On 31 March 2025, the assets of the pension funds, valued at fair value, were as follows, in accordance with the information provided by the pension plan management entity:
| Type of assets | March 2025 | December 2024 |
|---|---|---|
| Liquidity | 1% | 2% |
| Other investments | 12% | 11% |
| Shares | 15% | 15% |
| Real Estate | 24% | 23% |
| Bonds | 48% | 47% |
As at 31 March 2025 and 31 December 2024, the details of post-employment benefits were as follow:
| Unit: € m | |||
|---|---|---|---|
| Notes | March 2025 | December 2024 | |
| Asset under the heading of "Other Receivables" (non-current) | 9.2 | 2 | 2 |
| Liability | (218) | (221) | |
| Net responsibilities | (216) | (218) | |
| Obligations, of which: | (405) | (406) | |
| Past service liability covered by the pension fund | (185) | (184) | |
| Other employee benefit liabilities | (219) | (222) | |
| Assets | 189 | 188 |
16. Provisions
During the three-month period ended 31 March 2025, the movements in Provisions were as follows:
| Unit: € m | |||||
|---|---|---|---|---|---|
| March 2025 | December 2024 | ||||
| Decommissioning/ environmental provisions |
CESE (I and II) |
Other provisions |
Total | Total | |
| At the beginning of the period | 802 | 348 | 347 | 1,497 | 1,437 |
| Increases/(Decreases) to existing provisions |
(10) | 11 | 0 | 1 | 105 |
| Amount used during the year | (3) | 0 | 0 | (3) | (20) |
| Adjustments during the year | (1) | 0 | 20 | 19 | (25) |
| At the end of the period | 788 | 359 | 367 | 1,514 | 1,497 |
"Other provisions" of €367 m includes a €253 m (2024: €233 m) provision relating to a dispute between ANP and BM-S-11 consortium, as explained in Note 9, and a €26 m (2024: €26 m) provision related to the commitment to reimburse CESE I to the shareholders of Floene, if due, according to the agreement between the parties.
17. Other financial instruments
| Unit: € m | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 2025 | December 2024 | |||||||||
| Assets (Note 12) | Liabilities | Equity | Assets (Note 12) | Liabilities | Equity | |||||
| Current | Non current |
Current | Non current |
Current | Non current |
Current | Non current |
|||
| Designated hedge derivatives Gas |
13 | 5 | (7) | (1) | 10 | 0 | 7 | (18) | (22) | (32) |
| Swaps | 13 | 0 | (7) | (1) | 5 | 0 | 0 | (18) | (22) | (39) |
| Electricity | ||||||||||
| Swaps | 0 | 5 | 0 | 0 | 5 | 0 | 7 | 0 | 0 | 7 |
| Non designated hedge derivatives Oil |
100 | 37 | (68) | (76) | 0 | 110 | 49 | (94) | (81) | 0 |
| Futures | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Swaps | 4 | 0 | (7) | (0) | 0 | 0 | 0 | (1) | 0 | 0 |
| Gas | ||||||||||
| Futures | 9 | 0 | 0 | 0 | 0 | 7 | 0 | 0 | 0 | 0 |
| Swaps | 53 | 10 | (53) | (11) | 0 | 82 | 35 | (81) | (35) | 0 |
| Options | 21 | 0 | (1) | 0 | 0 | 9 | 0 | (2) | 0 | 0 |
| Electricity | ||||||||||
| Futures | 9 | 0 | 0 | 0 | 0 | 11 | 0 | 0 | 0 | 0 |
| Swaps | 2 | 26 | (7) | (65) | 0 | 1 | 13 | (11) | (45) | 0 |
| CO2 | ||||||||||
| Futures | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 113 | 42 | (75) | (77) | 10 | 110 | 55 | (111) | (102) | (32) |
Day 1 gain or losses on derivatives that are categorized as level 3 in the fair value hierarchy do not qualify for recognition in the financial statements. These day 1 gains and losses are disclosed in the financial statements and only recognized when the prices become sufficiently observable or as the contract matures. The cumulative amounts of MTM of day 1 gains not recognized were (€2 m) (2024: (€2 m)). The cumulative amount is recognized during the life span of the derivative.
There were no changes in the Group's valuation processes, valuation techniques, and types of inputs used in the fair value measurements during the period. The accounting impacts of gains and losses on derivative financial instruments on the income statement and comprehensive income as at 31 March 2025 and 2024 are presented below:
| Unit: € m | ||||||||
|---|---|---|---|---|---|---|---|---|
| March 2025 | March 2024 | |||||||
| Income statement | ||||||||
| MTM | Realised (Note 20) |
Equity MTM + Realised |
MTM | Realised (Note 20) |
MTM + Realised |
Equity | ||
| Designated hedge derivatives Gas |
0 | 1 | 1 | 42 | 0 | 0 | 0 | 4 |
| Swaps (Cash flow hedge) Electricity |
0 | 1 | 1 | 44 | 0 | 0 | 0 | 2 |
| Swaps | 0 | 0 | 0 | (2) | 0 | 0 | 0 | 0 |
| Interest rate | ||||||||
| Swaps (IRS) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 |
| Non designated hedge derivatives Oil |
(6) | 6 | 0 | 0 | 19 | 5 | 26 | 0 |
| Futures | 1 | (0) | 0 | 0 | 0 | 1 | 1 | 0 |
| Swaps | (3) | 1 | (2) | 0 | 0 | (5) | (5) | 0 |
| Options | 0 | 0 | 0 | 0 | 0 | 4 | 4 | 0 |
| Gas | ||||||||
| Futures | 2 | 1 | 3 | 0 | 0 | (3) | (3) | 0 |
| Swaps | (1) | (1) | (2) | 0 | 1 | 16 | 18 | 0 |
| Options | 8 | (1) | 7 | 0 | (1) | 0 | (1) | 0 |
| Electricity | ||||||||
| Futures | (9) | 5 | (4) | 0 | (1) | (9) | (9) | 0 |
| Swaps | (2) | 1 | (1) | 0 | 17 | (1) | 16 | 0 |
| CO2 | ||||||||
| Futures | (1) | 0 | (1) | 0 | 0 | 0 | 0 | 0 |
| Interest rate | ||||||||
| Swaps (IRS) | 0 | 0 | 0 | 0 | 3 | 2 | 5 | 0 |
| (6) | 6 | 1 | 42 | 20 | 6 | 26 | 3 |
The realised results of derivative financial instruments are mainly recognized as part of the cost of sales (Note 20), financial income or expenses.
The breakdown of the financial results (ie MTM) related to derivative financial instruments (Note 21) is as follows:
| Unit: € m | ||
|---|---|---|
| March 2025 | March 2024 | |
| Commodity Swaps | (6) | 18 |
| Options | 8 | (1) |
| Commodity Futures | (8) | (1) |
| Interest rate swaps | 0 | 3 |
| (6) | 20 |
18. Non-controlling interests
| Unit: € m | |||||
|---|---|---|---|---|---|
| 31 December 2024 |
Net profit for the period |
Currency translation reserves |
Dividends | 31 March 2025 |
|
| Non-controlling interests |
950 | 39 | (39) | (164) | 785 |
In the period ended 31 March 2025, dividends attributable to non-controlling interests mainly related to Winland International Petroleum, S.A.R.L. (entity belonging to Sinopec Group). The dividends to be paid, amounts to €133 m (December 2024: €63 m) (Note 22).
19. Revenue and income
The details of revenue and income for the three-month periods ended 31 March 2025 and 2024 were as follow:
| Unit: € m | |||
|---|---|---|---|
| Notes | March 2025 | March 2024 | |
| Total sales | 4,669 | 4,957 | |
| Goods | 2,314 | 2,352 | |
| Products | 2,355 | 2,604 | |
| Services rendered | 139 | 118 | |
| Other operating income | 316 | 222 | |
| Underlifting income | 111 | 125 | |
| Others | 205 | 97 | |
| Earnings from associates and joint ventures | 7 | 18 | 6 |
| Financial income | 21 | 29 | 53 |
| 5,170 | 5,355 |
In March 2025, the sale of the Mozambique upstream assets was completed, and a capital gain was recognized in the amount of €147 m, of which €129 m accounted as "Other operating income - Others" and €18 m as "Earnings from associates and joint ventures" (Note 2.3 and Note 7.1).
20. Costs and expenses
The details of costs and expenses, for the three-month periods ended 31 March 2025 and 2024 were as follow:
| Unit: € m | |||
|---|---|---|---|
| Notes | March 2025 | March 2024 | |
| Cost of sales | 3,528 | 3,584 | |
| Raw and subsidiary materials | 829 | 863 | |
| Goods | 2,003 | 2,083 | |
| Tax on oil products | 648 | 577 | |
| Variation in production | 27 | 95 | |
| Write downs on inventories | 8 | 12 | (49) |
| Costs with the emissions of CO2 | 15 | 18 | |
| Financial derivatives | 17 | (6) | (4) |
| External supplies and services | 534 | 490 | |
| Subcontracts – network use | 95 | 66 | |
| Transport of goods | 74 | 70 | |
| E&P – production costs | 77 | 87 | |
| Royalties | 60 | 65 | |
| E&P – exploration costs | 9 | (4) | |
| Other costs | 219 | 206 | |
| Employee costs | 117 | 105 | |
| Amortisation, depreciation and impairment losses on fixed assets | 4/5/6 | 182 | 197 |
| Provision and impairment losses on receivables | 9/16 | 4 | 0 |
| Other costs | 124 | 125 | |
| Other taxes | 17 | 9 | |
| Overlifting | 59 | 66 | |
| Other operating costs | 49 | 49 | |
| Financial expenses | 21 | 57 | 69 |
| Total costs and expenditure | 4,546 | 4,569 |
21. Financial results
The details of financial income and costs for the three-month periods ended 31 March 2025 and 2024 were as follow:
| Unit: € m | |||
|---|---|---|---|
| Notes | March 2025 | March 2024 | |
| Financial income | 29 | 53 | |
| Interest from bank deposits | 22 | 28 | |
| Interest income and other income with related companies | 4 | 4 | |
| Other financial income | 4 | 1 | |
| Results from derivative financial instruments | 17 | 0 | 20 |
| Financial expenses | (57) | (69) | |
| Interest on bank loans, bonds, overdrafts and others | (26) | (36) | |
| Interest on related party loans | 0 | 1 | |
| Interest capitalized in fixed assets | 4 | 12 | 13 |
| Interest on lease liabilities | 6 | (29) | (34) |
| Exchange gains/(losses) | 6 | (2) | |
| Results from derivative financial instruments | 17 | (6) | 0 |
| Other financial costs | (13) | (12) | |
| (28) | (16) |
22. Related party transactions
The Group had the following transactions with related parties:
| Unit: € m | ||
|---|---|---|
| March 2025 | December 2024 | |
| Current | Current | |
| Associates | 60 | 60 |
| Joint ventures* | 6 | 184 |
| Other related entities | 2 | 2 |
| Assets: | 68 | 246 |
*As of December 2024, it has included Coral FLNG, S.A. (classified as held for sale) - sale completed at the end of March 2025 (Note 2.3).
| Unit: € m | ||||
|---|---|---|---|---|
| March 2025 | December 2024 | |||
| Current | Non-current | Current | Non-current | |
| Associates | (8) | (26) | (4) | (26) |
| Joint ventures | (55) | 0 | (59) | 0 |
| Tip Top Energy, S.A.R.L. | (1) | 0 | (1) | 0 |
| Winland International Petroleum, S.A.R.L. | (133) | 0 | (63) | 0 |
| Other related entities | (1) | 0 | 0 | 0 |
| Liabilities: | (198) | (26) | (127) | (26) |
| Unit: € m | ||||
|---|---|---|---|---|
| March 2025 | March 2024 | |||
| Operating cost/income |
Financial costs/income |
Operating cost/income |
Financial costs/income |
|
| Associates | (18) | 1 | (11) | 1 |
| Joint ventures | (4) | 0 | (4) | 2 |
| Tip Top Energy, S.A.R.L. | (2) | 0 | (5) | 0 |
| Winland International Petroleum, S.A.R.L. | 0 | 0 | 0 | 1 |
| Other related entities | 2 | 0 | 10 | 0 |
| Transactions: | (22) | 1 | (10) | 4 |
23. Subsequent Events
Galp lifted first cargo from Venture Global
Galp has lifted the first LNG cargo from Venture Global LNG on April 15, 2025, under its sales and purchase agreement (SPA).
This first cargo signals the start of the take-or-pay rights and obligations set forth in the 20-year SPA, signed in May 2, 2018, with Venture Global LNG, for 1 mtpa, from the Calcasieu Pass LNG export facility in Louisiana, U.S..
No impact on the Interim Condensed Consolidated Statement of Income, Interim Condensed Consolidated Statements of Financial Position or Interim Condensed Consolidated Statement of Cash Flows from the event mentioned above.
No additional subsequent events to disclose at the date of the authorization of these interim condensed consolidated financial statements.
24. Approval of the financial statements
The consolidated financial statements were approved by the Board of Directors on 24 April 2025.
Chairman:
Paula Amorim
Vice-chair and Lead Independent Director:
Adolfo Mesquita Nunes
Vice-chairman:
Maria João Carioca
Members:
João Diogo Marques da Silva
Georgios Papadimitriou
Ronald Doesburg
Rodrigo Vilanova
Nuno Holbech Bastos
Marta Amorim
Francisco Teixeira Rêgo
Carlos Pinto
Jorge Seabra de Freitas
Diogo Tavares
Rui Paulo Gonçalves
Cristina Neves Fonseca
Javier Cavada Camino
Cláudia Almeida e Silva
Fedra Ribeiro
Ana Zambelli
Certified Accountant:
Cátia Cardoso
6.1 Definitions
Replacement cost (RC)
According to this method of valuing inventories, the cost of goods sold is valued at the cost of replacement, i.e. at the average cost of raw materials of the month when sales materialise irrespective of inventories at the start or end of the period. The Replacement Cost Method is not accepted by the IFRS and is consequently not adopted for valuing inventories. This method does not reflect the cost of replacing other assets.
Replacement cost adjusted (RCA)
In addition to using the replacement cost method, RCA items exclude special items such as mark-to-market of derivatives hedges, contributions from assets held for sale, capital gains or losses on the disposal of assets, impairment or reinstatement of fixed assets and environmental or restructuring charges which may affect the analysis of the Company's P&L metrics and do not reflect its operational performance.
Acronyms
%: Percentage ACS: Actividades de Construccion Y Servicios SA APETRO: Associação Portuguesa de Empresas Petrolíferas (Portuguese association of oil companies) B2B: Business to business B2C: Business to consumer bbl: barrel of oil bn: billion boe: barrels of oil equivalent BRL: Brazilian real c.: circa CO2: Carbon dioxide COD: Commercial Operation Date Capex: Capital expenditure CESE: Contribuição Extraordinária sobre o Sector Energético (Portuguese Extraordinary Energy Sector Contribution) CFFO: Cash flow from operations COD: Commercial Operation Date COFINS: Contribution for the Financing of Social Security CMVM: Portuguese Securities Market Commission CORES: Corporación de Reservas Estratégicas de Produtos Petrolíferos (Spain) d: day DD&A: Depreciation, Depletion and Amortisation Ebit: Earnings before interest and taxes Ebitda: Ebit plus depreciation, amortisation and provisions EMPL: Europe Magreb Pipeline, Ltd EUR/€: Euro FCC: Fluid Catalytic Cracker
FCF: Free Cash Flow FID: Final Investment Decision FLNG: Floating liquified natural gas FNEE: Fondo Nacional de Eficiência Energética (Spain) FPSO: Floating, production, storage and offloading unit Galp, Company or Group: Galp Energia, SGPS, S.A., subsidiaries and participated companies GGND: Galp Gás Natural Distribuição, S.A. GSBV: Galp Sinopec Brazil Services GW: Gigawatt GWh: Gigawatt hour I&EM: Industrial & Midstream IAS: International Accounting Standards IRC: Income tax IFRS: International Financial Reporting Standards IRP: Oil income tax (Oil tax payable in Angola) ISP: Payments relating to tax on oil products kboepd: thousands of barrels of oil equivalent per day kbpd: thousands of barrels of oil per day LNG: liquefied natural gas LTM: last twelve months m: million MIBGAS: Iberian Market of Natural Gas mbbl: million barrels of oil mboe: million barrels of oil equivalent mbtu: million British thermal units mm³: million cubic metres MTM: Mark-to-Market mton: million tonnes MW: Megawatt MWh: Megawatt-hour NE: Net entitlement NG: natural gas n.m.: not meaningful NWE: Northwestern Europe OCF: Adjusted Operating Cash Flow (RCA Ebitda + dividends associates – taxes paid) PV: photovoltaic p.p.: percentage point Q: Quarter QoQ: Quarter-on-quarter R&NB: Renewables & New Businesses REN: Rede Eléctrica Nacional RC: Replacement Cost RCA: Replacement Cost Adjusted SEM: Successful Efforts Method SPA: Sale and purchase agreement SPT: Special participation tax ton: tonnes TTF: Title transfer facility TWh: Terawatt-hour UA: Unitisation Agreements U.S.: United States UOP: Units of production USD/\$: Dollar of the United States of America Var.: Variation WI: working interest
YoY: year-on-year
6.2 Cautionary Statement
This document may include forward-looking statements. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forwardlooking 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. Accordingly, neither Galp nor any other person can assure that its future results, performance or events will meet those expectations, nor assume any responsibility for the accuracy and completeness of the forwardlooking statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Galp to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections, and assumptions. These forward-looking statements may generally be identified by the use of the future, gerund or conditional tense or the use of terms and phrases such as "aim", "ambition", "anticipate", "believe", "consider", "could", "develop", "envision", "estimate", "expect", "goals", "intend", "may'', "objectives", "outlook", "plan", "potential", "probably", "project", "pursue", "risks", "schedule", "seek", "should", "target", "think", "will" or the negative of these terms and similar terminology. Financial information by business segment is reported in accordance with the Galp management reporting policies and shows internal segment information that is used to manage and measure the Group's performance. In addition to IFRS measures, certain alternative performance measures are presented, such as performance measures adjusted for special items (adjusted operational cash flow, adjusted earnings before interest, taxes, depreciation and amortisation, adjusted earnings before interest and taxes, and adjusted net income), return on equity (ROE), return on average capital employed (ROACE), investment return rate (IRR), equity investment return rate (eIRR), gearing ratio, cash flow from operations and free cash flow. These indicators are meant to facilitate the analysis of the financial performance of Galp and comparison of results and cash flow among periods. In addition, the results are also measured in accordance with the replacement cost method, adjusted for special items. This method is used to assess the performance of each business segment and facilitate the comparability of the segments' performance with those of its competitors. This document may include data and information provided by third parties, which are not publicly available.
Such data and information should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by those third parties in writing. To the fullest extent permitted by law, those third parties accept no responsibility for your use of such data and information except as specified in a written agreement you may have entered into with those third parties for the provision of such data and information. 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.
Galp Energia, SGPS, S.A. Investor Relations
Investor Relations: Alexandre Gonçalves, Director João G. Pereira, Head Tommaso Fornaciari César Teixeira João Simões
.
Contacts:
Tel: +351 21 724 08 66
Contacts: +351 21 724 08 66 Address: Avenida da India, 8 1349-065 Lisbon Portugal
Website: www.galp.com/corp/en/investors Email: [email protected] Reuters: GALP.LS Bloomberg: GALP PL