Galp Energia

Quarterly Report • Jul 25, 2022

Interim Management Report and Accounts 1H22

25 July, 2022 Limited review accounts

Cautionary Statement

Following Article 29º F of the Portuguese Securities Code, this report is made available only in English. This document may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholder returns; liquidity; capital and operating expenditures; performance levels, operational or environmental goals, targets or commitments and project plans, timing, and outcomes; production rates; developments of Galp's markets; and impacts of the COVID-19 pandemic on Galp's businesses and results; any of which may significantly differ depending on a number of factors, including supply and demand for oil, gas, petroleum products, power and other market factors affecting them; the outcome of government policies and actions, including actions taken to address COVID-19 and to maintain the functioning of national and international economies and markets; the impacts of the COVID-19 pandemic on people and economies; the impact of Galp's actions to protect the health and safety of its employees, customers, suppliers and communities; actions of Galp's competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the actions of consumers; other legal and political factors, including changes in law and regulations and obtaining necessary permits; unexpected operating events or technical difficulties; the outcome of commercial negotiations, including negotiations with governments and private entities; and other factors discussed in Galp's Management Report & Accounts filed with the Portuguese Securities Market Commission (CMVM) for the year ended December 31, 2021 and available on our website at galp.com. This document may also contain statements regarding the perspectives, objectives, and goals of Galp, namely concerning ESG (Environmental, Social & Governance) objectives, including with respect to energy transition, carbon intensity reduction or carbon neutrality. An ambition expresses an outcome desired or intended by Galp, it being specified that the means to be deployed may not depend solely on Galp. Galp's business plans and budgets include investments that will accelerate the decarbonization of the Company over the next decade. These business plans and budgets will evolve over time to reflect its progress towards the 2050 Net Zero Emissions target. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements express future expectations that are based on management's expectations and assumptions as of the date they are disclosed and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such those statements. 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 forward-looking 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's 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 also contains non-financial performance indicators, according to applicable legislation, including a carbon intensity indicator for energy products sold by Galp, that measures the amount of greenhouse gas emissions of those products, from their production to their end use, per unit of energy delivered. This indicator covers the direct GHG emissions of production and processing facilities (scope 1) and their indirect emissions associated with energy purchased (scope 2), as well as the emissions associated with the use of products by Galp's costumers (scope 3). The same emissions are considered for products purchased from third parties and sold or transformed by Galp. For a complete definition of scopes 1, 2 and 3 and the methodology used by Galp for this indicator please refer to Galp's website at galp.com. This document may include data and information from sources that are publicly available. This document may also include data and information provided by third parties, including Wood Mackenzie, Rystad and market analysts, 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.

Index

Index

Table of Contents

1.	Results highlights	5
2.	Upstream	10
3.	Commercial	14
4.	Industrial & Energy Management	17
5.	Renewables & New Businesses	20
6. 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9	Financial Data Income Statement Capital Expenditure Cash flow Condensed Financial position Financial debt Share Repurchase Programme Reconciliation of IFRS and RCA figures Special Items IFRS consolidated income statement 6.10 Consolidated financial position	24 24 26 27 29 30 31 32 33 34 35
7.	Basis of reporting	38
8.	Appendix	40
9.	Definitions	73

1. RESULTS HIGHLIGHTS

Second quarter 2022

Galp's 2Q22 results reflect a robust operational performance, with the Company successfully capturing the favourable market conditions, namely in the Upstream, Refining and Renewables activities.

RCA Ebitda reached €1,244 m:

• Upstream: RCA Ebitda was strong at €878 m, reflecting increased oil and gas realisations, which benefited from the favourable macro environment. Working Interest (WI) production decreased 7% YoY reflecting a higher concentration of maintenance activities in the period.
• Commercial: RCA Ebitda was €97 m, supported by a gradual recovery on the demand of oil products, as well as a stronger performance from the B2B segment, namely on aviation and maritime bunkers activities.
• Industrial & Energy Management: RCA Ebitda was €283 m, with a robust contribution from the refining activities, partially offset by a negative lag in supply oil pricing formulas and persistent natural gas sourcing restrictions.
• Renewables & New Businesses: no relevant RCA Ebitda as most of the operations are not consolidated. The pro-forma Ebitda 1 of the Renewables operations reached €62 m in the period, reflecting increased generation from added capacity and higher availability, as well as stronger solar power prices in Iberia.

Group RCA Ebit was €924 m, including an impairment of €85 m in Upstream, related with exploration assets in Brazil, with no impact on the 2022-25 business plan production.

RCA net income was €265 m, also reflecting €-331 m in mark-to-market swings on Brent and refining margin hedges (c.€-230 m post-tax) related to the entire 1H22 (in 1Q22 booked as a special item).

IFRS net income2 was €727 m, with an inventory effect of €192 m and special items of €269 m, which includes positive mark-to-market swings, mostly from derivatives to cover client positions in natural gas (€130 m related with 1Q22).

The strong operational performance led Galp's adjusted operating cash flow (OCF3) to €964 m. CFFO reached €747 m, including a working capital build resulting from the increased commodities prices during the period although partially offset by a €199 m roll off in natural gas derivatives exposure.

FCF was positive at €488 m. Net debt decreased €207 m, considering €247 m spending in shareholder distributions, of which €207 m in dividends and €40 m in the share buyback programme in place since May.

First half 2022

Galp's RCA Ebitda was €2,114 m, while OCF was €1,603 m.

Net Capex totalled €365 m, mostly directed towards Upstream's developments and Renewables's portfolio execution.

FCF amounted to €517 m, with the strong cash generation supported by operational performance being partially offset by a working capital outflow.

Considering distributions of €247 m (cash dividends and buybacks) and dividends to noncontrolling interests of €111 m, as well as other adjustments, net debt decreased €173 m, compared to the end of last year.

At the end of the period, net debt amounted to €2,185 m and net debt to RCA Ebitda was at 0.7x.

³ Adjusted operating cash flow (OCF) indicator represents a proxy of Galp's operational performance excluding inventory effects, working capital changes and special items. The reconciliation of OCF with CFFO using IFRS is in chapter 6.3 Cash Flow.

¹ Pro-forma considers all Renewables projects as if they were consolidated according to Galp's equity stakes. ² Mark-to-market swings related with derivative hedges to cover client positions, namely in the natural gas trading segment, which have no direct translation into operating results, will continue to be considered as special items.

6

Other highlights

Share buyback programme of €150 m related with 2021 shareholder distributions

On May 12, 2022, Galp started its €150 m share repurchase programme of Galp Energia SGPS, SA's ordinary shares with the purpose to reduce the issued share capital of the Company (Buyback Programme). The Buyback Programme is planned to be executed within 125 to 150 trading days, with all shares repurchased to be cancelled after its conclusion until the year end.

The Buyback Programme follows Galp's shareholder distribution guidelines for the 2021 fiscal year (announced on February 21, 2022), and the authorisations obtained at the last Annual General Shareholders Meeting (held on April 29, 2022) for the acquisition of own shares representing up to 9% of share capital for the execution of buyback programmes and for its cancellation.

On June 30, Galp had acquired 3,417,390 shares (equivalent to 0.43% of the share capital), for an aggregate amount of €40 m.

Short Term Outlook

Galp is adjusting its key financial guidance for 2022 to reflect the 1H22 performance and a revised macro-outlook for the remaining of the year. The operational guidance remains unchanged.

Assumptions for 2H22

Brent	\$/bbl	90
Realised refining margin	\$/boe	15
Iberia solar capture price	€/MWh	130
Average exchange rate	EUR:USD	1.06

Operational indicators (no changes)

Upstream
WI production	kboepd	Flat YoY
Upstream production costs	\$/boe	<3
Commercial
Oil products sales to direct clients	mton	c.7.0
EV charging points	#	2k
Industrial & Energy Management
Sines refining throughput	mboe	c.90
Sines refining cash costs	\$/boe	c.2.0
Renewables
Renewable generation capacity by YE (@100%)	GW	1.4
Renewable generation (@100%)	TWh	2.0

Financial indicators

RCA Ebitda	€ bn	c.4.0
Upstream	€ bn	c.3.0
Commercial	€ m	c.300
Industrial & Energy Management	€ m	>700
Renewables & NB	€ m	c.60
OCF	€ bn	c.2.9
Upstream	€ bn	c.1.9
Commercial	€ m	c.230
Industrial & Energy Management	€ m	>700
Renewables & NB	€ m	c.50
Net capex	€ bn	c.1.0
Net debt to RCA Ebitda by YE	-	<1
Total expected distributions -

Financial data

€m (RCA, except otherwise stated)

Quarter								Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
571	869	1,244	673		n.m. RCA Ebitda	1,071	2,114	1,043	97%
467	803	878	410	88%	Upstream	906	1,680	775	86%
73	56	97	24	34%	Commercial	142	153	11	8%
50	2	283	233	n.m.	Industrial & Energy Management	45	285	240	n.m.
(6)	(1)	(4)	(2)	(33%)	Renewables & New Businesses	(8)	(5)	(4)	(43%)
(13)	10	(10)	(3)	(25%)	Others	(13)	(0)	(13)	(99%)
305	538	924	619		n.m. RCA Ebit	588	1,462	874	n.m.
290	555	653	363	n.m.	Upstream	603	1,208	604	n.m.
48	31	71	23	49%	Commercial	92	102	10	11%
(9)	(51)	219	228	n.m.	Industrial & Energy Management	(76)	168	244	n.m.
(5)	(1)	(4)	(1)	(13%)	Renewables & New Businesses	(8)	(5)	(2)	(31%)
(19)	5	(15)	(4)	(22%)	Others	(23)	(10)	(13)	(57%)
140	155	265	125	90%	RCA Net income	166	420	254	n.m.
(137)	(320)	269	406	n.m.	Special items	(103)	(51)	(52)	(50%)
68	152	192	124	n.m.	Inventory effect	169	344	175	n.m.
71	(14)	727	656		n.m. IFRS Net income	232	713	481	n.m.
470	638	964	495		n.m. Adjusted operating cash flow (OCF)	914	1,603	688	75%
346	576	597	251	73%	Upstream	736	1,173	437	59%
69	55	91	21	31%	Commercial	136	146	10	7%
64	(1)	288	223	n.m.	Industrial & Energy Management	55	286	231	n.m.
(2)	(1)	(4)	3	n.m.	Renewables & New Businesses	(4)	(5)	1	22%
440	193	747	307	70%	Cash flow from operations (CFFO)	817	940	123	15%
(186)	(122)	(244)	57	31%	Net Capex	8	(365)	(374)	n.m.
228	30	488	259		n.m. Free cash flow (FCF)	746	517	(229)	(31%)
(78)	(110)	(1)	(77)		(99%) Dividends paid to non-controlling interests	(78)	(111)	33	42%
(290)	-	(247)	(43)		(15%) Distributions to Galp shareholders	(290)	(247)	(43)	(15%)
(290)	-	(207)	(83)	(29%)	Dividends paid	(290)	(207)	(83)	(29%)
-	-	(40)	(40)	n.m.	Buybacks1	-	(40)	(40)	n.m.
1,711	2,392	2,185	473	28%	Net debt	1,711	2,185	473	28%
1.0x	1.0x	0.7x	-0.3x		-32% Net debt to RCA Ebitda2	1.0x	0.7x	-0.3x	-32%

1 Share repurchase amounts related to programmes for the sole purpose of the cancellation of own shares.

2 Ratio considers the LTM Ebitda RCA (€3,166 m), which includes the adjustment for the impact from the application of IFRS 16 (€199 m).

8

Operating data

Quarter							Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
128.4	131.1	119.6	(8.8)		(7%) Working interest production (kboepd)	126.8	125.4	(1.4)	(1%)
126.6	129.5	118.1	(8.5)		(7%) Net entitlement production (kboepd)	125.1	123.9	(1.2)	(1%)
-	102.2	110.6	n.m.		n.m. Upstream oil realisations indicator (USD/bbl)	-	105.8	n.m.	n.m.
-	43.6	51.9	n.m.		n.m. Upstream gas realisations indicator (USD/boe)	-	47.5	n.m.	n.m.
21.0	21.8	22.9	1.9	9%	Raw materials processed (mboe)	40.7	44.7	3.9	10%
2.4	6.9	22.3	20.0		n.m. Galp refining margin (USD/boe)	2.1	14.8	12.7	n.m.
3.6	3.9	4.1	0.4	11%	Oil products supply1 (mton)	7.2	7.7	0.5	7%
18.1	14.8	14.0	(4.1)		(23%) NG/LNG supply & trading volumes1 (TWh)	36	29	(7.6)	(21%)
269	113	174	(95)		(35%) Sales of electricity from cogeneration (GWh)	0.6	0.3	(0.3)	(52%)
1.5	1.7	1.9	0.3	22%	Oil Products - client sales (mton)	2.9	3.5	0.7	24%
4,461	5,590	5,006	545	12%	Natural gas - client sales (GWh)	9,410	10,596	1,186	13%
1,020	1,139	1,088	68	7%	Electricity - client sales (GWh)	1,970	2,228	257	13%
475	243	687	212	45%	Gross renewable power generation (GWh)	667	931	264	40%
69.1	210.1	151.5	82.4		n.m. Galp average solar generation sale price (EUR/MWh)	61.6	166.5	104.9	n.m.

¹ Includes volumes sold to the Commercial segment.

Market indicators

Quarter							Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
1.21	1.12	1.06	(0.14)		-12% Exchange rate EUR:USD	1.21	1.09	(0.11)	-9%
6.38	5.87	5.24	(1.14)		-18% Exchange rate EUR:BRL	6.49	5.56	(0.93)	-14%
69.0	102.2	113.9	45.0	65%	Dated Brent price (USD/bbl)	65.0	107.9	43.0	66%
(2.0)	(12.3)	(35.0)	33.0		n.m. Heavy-light crude price spread1 (USD/bbl)	(1.3)	(23.7)	22.4	n.m.
25.0	96.9	87.1	62.2		n.m. Iberian MIBGAS natural gas price (EUR/MWh)	22.8	92.0	69.2	n.m.
25.4	98.4	97.9	72.5		n.m. Dutch TTF natural gas price (EUR/MWh)	21.9	98.1	76.3	n.m.
28.5	95.3	87.4	58.8		n.m. Japan/Korea Marker LNG price (USD/mbtu)	28.3	91.4	63.1	n.m.
71.8	229.3	182.8	111.0		n.m. Iberian baseload pool price (EUR/MWh)	58.6	205.9	147.4	n.m.
69.2	218.3	163.0	93.7		n.m. Iberian solar captured price (EUR/MWh)	59.7	187.4	127.7	n.m.
13.7	14.8	16.3	2.6	19%	Iberian oil market (mton)	26.3	31.1	4.8	18%
96.8	120.6	96.2	(0.7)		(1%) Iberian natural gas market (TWh)	211.2	216.8	5.6	3%

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. 1 Urals NWE dated for heavy crude; dated Brent for light crude.

2. UPSTREAM

€m (RCA, except otherwise stated; unit figures based on total net entitlement production)

Quarter					Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
128.4	131.1	119.6	(8.8)		(7%) Working interest production1 (kboepd)	126.8	125.4	(1.4)	(1%)
114.9	117.5	107.7	(7.2)	(6%)	Oil production (kbpd)	113.5	112.7	(0.9)	(1%)
13.5	13.5	11.9	(1.6)	(12%)	Gas production (kboepd)	13.3	12.7	(0.6)	(4%)
126.6	129.5	118.1	(8.5)		(7%) Net entitlement production1 (kboepd)	125.1	123.9	(1.2)	(1%)
					By product
113.1	117.5	106.3	(6.9)	(6%)	Oil production (kbpd)	111.8	111.2	(0.6)	(1%)
13.5	13.5	11.9	(1.6)	(12%)	Gas production (kboepd)	13.3	12.7	(0.6)	(4%)
					By country
11.6	10.3	10.1	(1.5)	(13%)	Angola	11.5	10.2	(1.2)	(11%)
115.0	119.2	108.0	(7.0)	(6%)	Brazil	113.6	113.6	0.0	0%
					Realisations indicators2
-	102.2	110.6	n.m.	n.m.	Oil (USD/bbl)		- 105.8	n.m.	n.m.
-	43.6	51.9	n.m.	n.m.	Gas (USD/boe)		- 47.5	n.m.	n.m.
5.6	8.5	8.7	3.1	56%	Royalties (USD/boe)	5.2	8.6	3.4	65%
1.2	2.4	2.6	1.4		n.m. Production costs (USD/boe)	1.5	2.5	1.0	65%
13.4	12.7	13.1	(0.2)		(2%) DD&A2 (USD/boe)	13.5	12.9	(0.6)	(4%)
467	803	878	410	88%	RCA Ebitda	906	1,680	775	86%
(177)	(248)	(225)	47	27%	Depreciation, Amortisation and Impairments3	(303)	(473)	169	56%
-	0	(0)	(0)		n.m. Provisions	1	0	(1)	(96%)
290	555	653	363		n.m. RCA Ebit	603	1,208	604	n.m.
290	555	653	363		n.m. IFRS Ebit	630	1,208	578	92%
346	576	597	251	73%	Adjusted operating cash flow	736	1,173	437	59%
135	129	133	(2)		(2%) Capex	283	262	(22)	(8%)

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 of 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. 2Q21 and 1H22 unit figures exclude impairments of €48 m and €212 m, respectively, related with exploration and appraisal assets in Brazil.

Second quarter 2022

Operations

11

WI production was down 7% YoY, to 120 kboepd, reflecting the higher concentration of maintenance activities during the period. Natural gas accounted for 10% of WI production.

In Brazil, production decreased 6% YoY to 108 kboepd, following the increased planned and unplanned interventions performed on several FPSOs. Angola WI production decreased 13% YoY, to 12 kbpd.

The Group's net entitlement (NE) production followed the WI production decrease to 118 kboepd.

Results

RCA Ebitda was €878 m, up YoY from €467 m, reflecting increased oil and gas realisations, which benefited from the favourable macro environment, which more than offset the lower production in the quarter. OCF was €597 m, compared to €346 m in 2Q21.

Production costs were €26 m, higher YoY reflecting the higher maintenance in the period. In unit terms, and on a net entitlement basis, production costs were \$2.6/boe. As per the application of IFRS 16, the production costs exclude the amounts related with IFRS16 leases, which accounted for €31 m during the period.

Upstream realised hedging operations covered 1.6 mbbl of Galp's oil production in the period, resulting in a €-47 m impact to RCA Ebitda.

Amortisation and depreciation charges (including abandonment provisions) were €225 m, which includes impairments of €85 m related with exploration assets in Brazil, with no impact on the 2022-25 business plan production. On a net entitlement basis, and excluding the impairments, DD&A was \$13.2/boe.

RCA Ebit was €653 m, up €363 m YoY. IFRS Ebit amounted to €653 m.

First half 2022

Operations

Average WI production during 1H22 was 125 kboepd, whilst NE production stood at 124 kboepd, flattish YoY, despite reflecting a natural decline in production from Angola.

Results

OCF was €1,173 m, up from €736 m in 1H21, driven by the increased realisations in a higher oil and natural gas price environment.

Production costs were €51 m, excluding IFRS 16 leases of €64 m. In unit terms, and on a net entitlement basis, production costs were \$2.5/boe.

Realised hedging operations covered 2.9 mbbl of Galp's oil production in the period, resulting in a €-74 m contribution to RCA Ebitda.

Amortisation and depreciation charges (including abandonment provisions) amounted to €473 m, including the €212 m related with exploration and appraisal assets in Brazil, with no impact on the 2022-25 business plan production. On a net entitlement basis, and not considering the impacts from impairments, unit DD&A was \$12.9/boe.

RCA Ebit was €1,208 m, up €604 m YoY, and IFRS Ebit also amounted to €1,208 m.

12

Other Highlights

Introduction of hydrocarbons in Coral Sul FLNG (Mozambique)

In June 2022, Coral South FLNG project, in Area 4 offshore Mozambique, has safely achieved the introduction of hydrocarbons to the plant for commissioning and production ramp-up purposes. First commercial cargo is expected in 4Q22.

14

3. COMMERCIAL

€m (RCA, except otherwise stated)

Quarter							Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
					Commercial sales to clients
1.5	1.7	1.9	0.3	22%	Oil products (mton)	2.9	3.5	0.7	24%
4,461	5,590	5,006	545	12%	Natural Gas (GWh)	9,410	10,596	1,186	13%
1,020	1,139	1,088	68	7%	Electricity (GWh)	1,970	2,228	257.4	13%
73	56	97	24	34%	RCA Ebitda	142	153	11	8%
(25)	(25)	(26)	0	2%	Depreciation, Amortisation and Impairments	(50)	(51)	1	2%
1	(0)	-	(1)	n.m.	Provisions	(0)	(0)	(0)	(65%)
48	31	71	23	49%	RCA Ebit	92	102	10	11%
49	31	93	44	90%	IFRS Ebit	94	124	30	32%
69	55	91	21	31%	Adjusted operating cash flow	136	146	10	7%
22	6	18	(4)	(18%) Capex		26	24	(2)	(8%)

Second quarter 2022

Operations

15

Oil products' sales increased 22% YoY to 1.9 mton, reflecting the gradual recovery in the demand of oil products, namely in B2B activities.

Natural gas volumes sold increased 12% YoY to 5.0 TWh, also as a result of higher volumes sold in B2B, while sales of electricity were 1.1 TWh, up 7% YoY.

At the end of the quarter, a total of 1,506 charging points were operating in Portugal and Spain.

Results

RCA Ebitda was €97 m, 34% higher YoY, supported by a gradual recovery of demand, as well as a stronger performance from the B2B segment, namely on aviation and maritime activities, whilst the contribution from B2C activities, namely the retail segment, were pressured by discount campaigns to reduce the impact of the price environment on clients. OCF was €91 m, up from €69 m YoY.

RCA Ebit was €71 m, a 49% increase YoY, whilst IFRS Ebit was €93 m.

First half 2022

Operations

Total oil products' sales were 3.5 mton in 1H22, up 24% YoY, reflecting higher demand of oil products, both on B2B and B2C, following a post-pandemic gradual recovery.

Natural gas and electricity amounted to 10.6 TWh and 2.2 TWh, respectively, both up 13% YoY, driven by a considerable increase in contribution from the B2B segment.

Results

RCA Ebitda increased 8% YoY to €153 m, reflecting the recovery on volumes sold during the period and despite the pressure from discount campaigns to reduce the impact of the price environment on clients. OCF was €146 m, up 7% YoY.

RCA Ebit was €102 m, up 11% YoY. IFRS Ebit was €124 m.

17

4. INDUSTRIAL & ENERGY MANAGEMENT

€m (RCA, except otherwise stated)

Quarter						Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
21.0	21.8	22.9	1.9	9%	Raw materials processed (mboe)	40.7	44.7	3.9	10%
18.6	17.7	19.6	0.9	5%	Crude processed (mbbl)	35.5	37.3	1.8	5%
2.4	6.9	22.3	20.0		n.m. Galp refining margin (USD/boe)	2.1	14.8	12.7	n.m.
1.5	2.0	1.5	(0.1)		(4%) Refining cost (USD/boe)	1.7	1.8	0.1	6%
3.6	3.9	4.1	0.4	11%	Oil products supply1 (mton)	7.2	7.7	0.5	7%
18.1	14.8	14.0	(4.1)		(23%) NG/LNG supply & trading volumes1 (TWh)	36.4	28.8	(7.6)	(21%)
9.1	6.1	6.0	(3.2)	(35%)	Trading (TWh)	17.4	12.1	(5.4)	(31%)
269	113	174	(95)		(35%) Sales of electricity from cogeneration (GWh)	600	287	(313)	(52%)
50	2	283	233		n.m. RCA Ebitda	45	285	240	n.m.
(60)	(50)	(65)	5	9%	Depreciation, Amortisation and Impairments	(120)	(116)	(5)	(4%)
0	(2)	1	1		n.m. Provisions	(0)	(2)	1	n.m.
(9)	(51)	219	228		n.m. RCA Ebit	(76)	168	244	n.m.
61	124	480	419		n.m. IFRS Ebit	110	604	494	n.m.
64	(1)	288	223		n.m. Adjusted operating cash flow	55	286	231	n.m.
11	7	16	5	48%	Capex	18	23	5	30%

¹ Includes volumes sold to the Commercial segment.

Second quarter 2022

Operations

18

Raw materials processed in the quarter were 22.9 mboe, higher 9% YoY, reflecting the full availability of the refining system during the period.

Total supply of oil products increased 11% YoY to 4.1 mton, following the gradual increase in demand.

Supply & trading volumes of NG/LNG decreased 23% YoY to 14.0 TWh, still limited by natural gas sourcing restrictions and the challenging European natural gas environment.

Results

RCA Ebitda was €283 m, increasing €233 m YoY, considering a robust contribution from refining activities, partially offset by a negative lag in oil products supply pricing formulas and restricted natural gas trading activities. OCF was €290 m.

Galp's refining margin was up YoY from \$2.4/boe to \$22.3/boe, with the refining activities capturing the increase in international oil products' cracks, namely on middle distillates and gasoline, and despite the higher energy and CO2 emissions costs.

Refining costs were €32 m, or \$1.5/boe in unit terms, down 4% YoY, benefiting from an insurance receivable related with the upset on the atmospheric distillation unit in 4Q21. Realised refining margin hedging operations had a €-100 m impact to RCA Ebitda, covering 5.6 mboe during the period.

Energy Management contribution was impacted by a negative lag in oil pricing formulas of €50 m, during a period of increased commodities prices, and by the persistent restrictions on natural gas sourcing within the trading activities.

RCA Ebit was €219 m, whilst IFRS Ebit was €480 m, with inventory effect of €274 m.

First half 2022

Operations

Raw materials processed were 44.7 mboe during the period, 10% higher YoY, reflecting the full availability of the refining system during the first half of the period.

Crude oil accounted for 82% of raw materials processed, of which 84% corresponded to medium and heavy crudes. All crudes processed were sweet grades.

Middle distillates (diesel and jet) accounted for 46% of production, gasoline for 24% and fuel oil for 19%. Consumption and losses accounted for 9% of raw materials processed.

Total oil products supplied increased 7% YoY to 7.7 mton, driven by increased market demand in Iberia.

Supply & trading volumes of NG/LNG were 28.8 TWh, down 21% YoY, limited by natural gas sourcing restrictions and the international high prices.

Results

RCA Ebitda for Industrial & Energy Management increased €240 m YoY, following the increased contribution from the refining activities and despite a negative impact from the lag in pricing formulas for oil products' supply. OCF was €289 m.

Galp's refining margin was up YoY, to \$14.8/boe, following the strong improvement in the international refining environment. Refining unit cash costs slightly increased YoY from \$1.7/boe to \$1.8/boe, while the system operated with full availability. Industrial results followed the improved performance of the refining activities.

Energy Management contribution decreased YoY, given a €-138 m negative impact from the lag in oil pricing formulas during the period and the still restricted natural gas trading activities.

RCA Ebit was €168 m and IFRS Ebit was €604 m.

20

JULY 2022

5. RENEWABLES & NEW BUSINESSES

€m (RCA, except otherwise stated)

Quarter						Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
					Renewable power generation (GWh)
475	243	687	212	45%	Gross	667	931	264	40%
355	180	515	160	45%	Net to Galp	496	695	199	40%
69.1	210.1	151.5	82.4		n.m. Galp average solar generation sale price (EUR/MWh)	61.6	166.5	104.9	n.m.
(6)	(1)	(4)	(2)	(33%)	RCA Ebitda	(8)	(5)	(4)	(43%)
(5)	(1)	(4)	(1)	(13%)	RCA Ebit	(8)	(5)	(2)	(31%)
(5)	(1)	(4)	(1)	(13%)	IFRS Ebit	(8)	(5)	(2)	(31%)
(2)	(1)	(4)	3		n.m. Adjusted operating cash flow	(4)	(5)	1	22%
51	39	51	(0)		(0%) Capex	66	90	24	37%
					Renewables pro-forma - equity to Galp1
17	31	62	46	n.m.	Ebitda	19	93	74	n.m.
11	24	56	45	n.m.	Ebit	8	81	73	n.m.
17	31	62	46		n.m. Renewables pro-forma adjusted operating cash flow	19	93	74	n.m.

1 Pro-forma considers all Renewables projects as if they were consolidated according to Galp's equity stakes.

Second quarter 2022

Operations

21

Renewable installed capacity, on a 100% basis, increased to 1,162 MW during the quarter, after the start-up in April of 150 MW of new solar capacity in Spain, from the Titan portfolio.

Renewable energy generation, on a 100% basis, amounted to 687 GWh, a 45% increase YoY, driven by the new capacity online and the overall improvement on operational performance.

Results

Galp's average solar generation sale price was €152/MWh during the quarter, following the YoY increase registered in the Iberian wholesale market prices.

Renewables & New Businesses RCA Ebitda was €-4 m in 2Q22, as it mostly includes G&A and corporate expenses, given that all renewables' projects in operation are not consolidated into Galp's accounts.

Renewables pro-forma Ebitda, which considers all renewable projects as if they were consolidated according to Galp's equity stakes, was €62 m, reflecting increased generation from new added capacity and higher equipment's availability, as well as stronger solar power prices in Iberia. Of the total installed capacity, c.0.3 GW is subject to the application of the Spanish government's temporary clawback mechanism, with an impact on proforma Ebitda of €8 m.

First half 2022

Operations

Renewable energy generation, on a 100% basis, amounted to 931 GWh, a 40% increase YoY, reflecting the new capacity brought online and the overall improvement in the operational performance.

Results

All renewable generation is exposed to merchant conditions. Galp's average solar generation sale price was €167/MWh during 1H22, up from €62/MWh in 1H21, driven by the higher Iberian wholesale market prices.

Renewables & New Businesses RCA Ebitda was €-5 m in 1H22, mostly including G&A and corporate expenses, as all the renewables' projects operating are not consolidated.

Renewables pro-forma Ebitda, was €93 m, supported by higher power prices in Iberia and increased renewable power generation. The temporary Spanish clawback mechanism had an impact of €10 m in pro-forma Ebitda.

Pro-forma OCF was €93 m.

Pro-forma OCF was €62 m.

	In Operation	Under Contruction	Under Development	Total
Galp Renewable capacity (MW)	1,162	421	7,817	9,401
Spain	1,150	277	2,052	3,480
Portugal	12	144	351	507
Brazil	-	-	5,414	5,414

Other highlights

Galp takes full ownership of Titan solar

Galp has acquired the 24.99% it did not already own in Titan 2020 S.A. (Titan), the company created in September 2020 as a joint venture with the ACS Group.

The stake was acquired from Cobra, which had taken the position from ACS, for a total consideration of €140 m.

Titan's portfolio includes 1.15 GW of solar photovoltaic (PV) plants in operation and several projects at different stages of development with about 1.6 GW of additional capacity expected to be online by 2024, all located in Spain.

Galp will start to fully consolidate Titan in its financial statements. Titan's net debt currently stands at c.€220 m and the last twelve months Ebitda was c.€200 m.

Galp renewable power generation ambition is to have over 4 GW of gross operating capacity by 2025 and 12 GW by 2030.

6. FINANCIAL DATA

6.1 Income Statement

€m (RCA, except otherwise stated)

Quarter							Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
3,636	5,661	7,229	3,593	99%	Turnover	6,974	12,890	5,917	85%
(2,695)	(4,326)	(5,590)	2,896		n.m. Cost of goods sold	(5,106)	(9,917)	4,811	94%
(352)	(458)	(449)	97	28%	Supply & Services	(708)	(906)	198	28%
(68)	(81)	(76)	8	11%	Personnel costs	(138)	(156)	18	13%
53	79	130	78		n.m. Other operating revenues (expenses)	52	209	157	n.m.
(3)	(6)	(0)	(3)		(87%) Impairments on accounts receivable	(3)	(7)	4	n.m.
571	869	1,244	673		n.m. RCA Ebitda	1,071	2,114	1,043	97%
644	1,048	1,549	905		n.m. IFRS Ebitda	1,287	2,597	1,310	n.m.
(266)	(329)	(322)	56	21%	Depreciation, Amortisation and Impairments	(482)	(651)	169	35%
(0)	(2)	2	2		n.m. Provisions	(0)	(1)	0	n.m.
305	538	924	619		n.m. RCA Ebit	588	1,462	874	n.m.
376	709	1,211	835		n.m. IFRS Ebit	803	1,920	1,117	n.m.
26	26	62	35		n.m. Net income from associates	26	87	61	n.m.
(4)	(31)	(346)	342		n.m. Financial results	(59)	(377)	317	n.m.
(7)	(8)	(5)	(2)	(27%)	Net interests	(16)	(13)	(3)	(18%)
4	4	4	0	10%	Capitalised interest	7	9	2	28%
8	1	2	(6)	(80%)	Exchange gain (loss)	(9)	3	12	n.m.
(0)	-	(331)	331	n.m.	Mark-to-market of derivatives	(0)	(331)	331	n.m.
(18)	(19)	(20)	2	10%	Interest on leases (IFRS 16)	(37)	(39)	2	6%
10	(10)	4	(6)	(57%)	Other financial costs/income	(5)	(6)	1	24%
327	532	640	313	96%	RCA Net income before taxes and minority interests	555	1,172	617	n.m.
(153)	(330)	(295)	142	93%	Taxes	(334)	(625)	291	87%
(142)	(222)	(198)	56	39%	Taxes on oil and natural gas production1	(250)	(420)	169	68%
(34)	(48)	(79)	45		n.m. Non-controlling interests	(56)	(127)	72	n.m.
140	155	265	125	90%	RCA Net income	166	420	254	n.m.
(137)	(320)	269	406		n.m. Special items	(103)	(51)	(52)	(50%)
3	(165)	534	532		n.m. RC Net income	63	369	306	n.m.
68	152	192	124		n.m. Inventory effect	169	344	175	n.m.
71	(14)	727	656		n.m. IFRS Net income	232	713	481	n.m.

¹ Includes income taxes and taxes on oil and natural gas production, such as SPT payable in Brazil and IRP payable in Angola.

Second quarter 2022

RCA Ebitda increased €673 m YoY to €1,549 m, reflecting a robust operational performance, with the Company successfully capturing the favourable market conditions, namely in the Upstream, Refining and Renewables activities. IFRS Ebitda amounted to €1,549 m, considering €-301 m of inventory effect and €4 m of special items.

Group RCA Ebit was €924 m, including an impairment of €85 m in Upstream, related with exploration assets in Brazil. IFRS Ebit was €1,211 m.

Income from associated companies was €62 m, up YoY, reflecting the increased contribution of the Renewables' Titan joint venture.

Financial results were €-346 m, which include €-331 m in mark-to-market swings on Brent and refining margin hedges (c.€-230 m post-tax) related to the entire 1H22 (in 1Q22 booked as a special item). Mark-to-market swings related with derivative hedges to cover client positions, namely in the natural gas trading segment, which have no direct translation into operating results, are registered as special items.

RCA taxes increased YoY, from €153 m to €295 m, following the increased operational results, namely on the Upstream and Industrial segments.

Non-controlling interests of €-79 m are mostly attributed to Sinopec's stake in Petrogal Brasil.

RCA net income was €265 m. IFRS net income was €727 m, with an inventory effect of €192 m and special items of €269 m, which includes positive mark-to-market swings, mostly from derivatives to cover client positions in the natural gas trading activities (as mentioned above), but also €130 m related with 1Q22 which were booked in 2Q22 RCA financial results.

First half 2022

RCA Ebitda of €2,114 m was 97% higher YoY, driven by the stronger operational performance, supported by the improved market conditions during the period.

Following RCA Ebitda, the RCA Ebit was €1,462 m, up YoY from €588 m, also reflecting impairments in Upstream of €212 m related with exploration and appraisal assets in Brazil.

Financial results were €-377 m, mainly reflecting mark-to-market swings related with the fair value accounting of commodity derivatives in the Upstream and Refining segments.

RCA taxes increased YoY from €334 m to €625 m, following the increased operational results.

Non-controlling interests of €-127 m are related with Sinopec's stake in Petrogal Brasil.

RCA net income was €420 m, while IFRS net income was €713 m, considering an inventory effect of €344 m and special items of €-51 m.

6.2 Capital Expenditure

€m
Quarter						Half Year
2Q21	1Q22	2Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
	135 129	133	(2)		(2%) Upstream	283	262	(22)	(8%)
	22	6 18	(4)		(18%) Commercial	26	24	(2)	(8%)
	11	7 16	5	48%	Industrial & Energy Management	18	23	5	30%
	51 39	51	(0)		(0%) Renewables & New Businesses	66	90	24	37%
	5	7	7 2	31%	Others	9	14	5	61%
	224 188	224	0	0%	Capex (economic)1	402	412	11	3%

1 Capex figures based in change in assets during the period.

Second quarter 2022

Capex totalled €224 m during the quarter.

Investments in the Upstream were mostly directed to projects under development in the Brazilian pre-salt, namely Bacalhau and BM-S-11.

Commercial capex was mostly allocated to the transformation of the retail business, both in Portugal and Spain. Industrial & Energy Management capex was directed to initiatives to improve the efficiency of the refining system.

Investments within the Renewables & New Businesses segment, which are net of project finance contributions, were mostly deployed towards the continued execution of the solar portfolio.

First half 2022

Capex totalled €412 m, with Upstream accounting for 63% of total investments, whilst the downstream activities represented 11% and Renewables & New Businesses 22%.

Upstream investments were mainly directed to Brazil, namely Bacalhau and BM-S-11.

Commercial investments were allocated to business transformation. Industrial & Energy Management investments were allocated to refining activities.

Investments within the Renewables & New Businesses segment supported the continued execution of the solar projects.

6.3 Cash Flow

€m (IFRS figures)
	Quarter			Half Year
2Q21	1Q22	2Q22		2021	2022
571	869	1,244	RCA Ebitda	1,071	2,114
42	-	9	Dividends from associates	90	(9)
(144)	(231)	(289)	Taxes paid	(246)	(520)
470	638	964	Adjusted operating cash flow	914	1,603
(20)	(9)	4	Special items	(9)	(5)
92	188	301	Inventory effect	225	489
(102)	(625)	(522)	Changes in working capital	(314)	(1,146)
(98)	(224)	199	o.w. gas derivatives hedges	(71)	(25)
440	193	747	Cash flow from operations	817	940
(186)	(122)	(244)	Net capex1	8	(365)
(7)	(23)	5	Net financial expenses	(43)	(18)
(18)	(18)	(21)	IFRS 16 leases interest	(37)	(39)
228	30	488	Free cash flow	746	517
(78)	(110)	(1)	Dividends paid to non-controlling interest2	(78)	(111)
(290)	-	(247)	Distributions to Galp shareholders	(290)	(247)
(290)	-	(207)	Dividends paid	(290)	(207)
-	-	(40)	Buybacks3	-	(40)
(28)	(27)	(34)	Reimbursement of IFRS 16 leases principal	(54)	(61)
9	73	1	Others	31	74
159	35	(207)	Change in net debt	(354)	(173)

1 2021 includes the proceeds from the GGND stake sale of €343 m.

² Mainly dividends paid to Sinopec.

³ Share repurchase amounts related to programmes for the sole purpose of the cancellation of own shares.

28

Second quarter 2022

CFFO reached €747 m, including a working capital build resulting from the increased commodities prices during the period although partially offset by a €199 m roll off in natural gas derivatives exposure.

FCF was positive at €488 m. Net debt decreased €207 m, already considering a €247 m spending in shareholder distributions, of which €207 m in dividends and €40 m in the share buyback programme in place since May.

First half 2022

Galp's OCF1 was €1,603 m, capturing the favourable market conditions, while CFFO amounted to €940 m, including a material working capital build from the increased commodities price environment during the period.

FCF amounted to €517 m. Considering distributions to shareholders of €247 m (cash dividends and buybacks) and dividends to non-controlling interests of €111 m, as well as other adjustments, net debt decreased €173 m, compared to the end of last year.

¹The OCF indicator represents a proxy of Galp's operational performance excluding inventory effects, working capital changes and special items. The reconciliation of this indicator with CFFO using IFRS is in chapter 6.3 Cash Flow.

29

6.4 Condensed Financial Position

€m (IFRS figures)

	31 Dec. 2021	31 Mar. 2022	30 Jun. 2022	Var. vs 31 Dec. 2021	Var. vs 31 Mar. 2022
Net fixed assets	6,667	6,718	6,625	(41)	(93)
Rights of use (IFRS 16)	1,079	1,064	1,088	10	24
Working capital	1,879	2,504	3,026	1,146	522
Other assets/liabilities	(2,119)	(2,693)	(2,490)	(370)	203
Capital employed	7,506	7,594	8,250	744	656
Short term debt	1,305	2,374	1,531	227	(843)
Medium-Long term debt	2,995	2,655	2,718	(276)	63
Total debt	4,300	5,030	4,250	(50)	(780)
Cash and equivalents	1,942	2,638	2,065	123	(573)
Net debt	2,357	2,392	2,185	(173)	(207)
Leases (IFRS 16)	1,179	1,166	1,202	24	36
Equity	3,970	4,036	4,863	893	827
Equity, net debt and leases	7,506	7,594	8,250	744	656

On June 30, 2022, net fixed assets were €6,625 m, including work-in-progress of €2,116 m, mostly related to the Upstream business.

Other assets / liabilities increased €370 m compared to year-end 2021, mostly reflecting impacts from the mark-to-market of derivatives. Equity was up €893 m, supported by the IFRS net income in the period and the USD appreciation against the Euro, although partially offset by distributions to shareholders and dividends to minorities.

6.5 Financial Debt

€m (except otherwise stated)

	31 Dec. 2021	31 Mar. 2022	30 Jun. 2022	Var. vs 31 Dec. 2021	Var. vs 31 Mar. 2022
Cash and equivalents	1,942	2,638	2,065	123	(573)
Undrawn credit facilities	816	949	1,760	945	811
Bonds	2,421	2,801	2,814	394	13
Bank loans and other debt	1,879	2,228	1,436	(443)	(793)
Net debt	2,357	2,392	2,185	(173)	(207)
Leases (IFRS 16)	1,179	1,166	1,202	24	36
Net debt to RCA Ebitda 2	1.1x	1.0x	0.7x	-0.4x	-0.3x

1 Ratio considers the LTM Ebitda RCA (€3,166 m), which includes the adjustment for the impact from the application of IFRS 16 (€199 m).

On June 30, 2022, net debt was €2,185 m, down €173 m from year-end 2021. Net debt to RCA Ebitda stands at 0.7x. Excluding temporary impacts on working capital, related with margin accounts, net debt to RCA Ebitda at quarter end would have been c.0.5x.

At the end of the period, cash and equivalents reached €2.1 bn, whilst unused credit lines were c.€1.8 bn, of which c.82% were contractually guaranteed. The average cost of funding for the period, including charges for credit lines, was 1.44%.

During the period, Galp decided to exercise the call option with respect to the total outstanding amount of the notes representing the bond issue "EUR 150 M. FLOATING RATE NOTES DUE 2024" (CVM Code: GALDOM) ("Notes"). The redemption of the Notes made at principal amount thereof plus accrued interest and will occur on the 29 of July 2022 (payment date of the current Interest Period). Cancellation of the Notes will follow.

Debt maturity profile (€ m)

31

6.6 Share Repurchase Programme

	Programme Amount	Start Date	Duration	Status	Amount Spent	Total Shares Bought
2021 Fiscal Year	€150 m	12/05/2022	120 to 150 days	Ongoing	€40 m	3,417,390

Framework

The shareholder's remuneration framework considers a progressive base cash dividend, growing at 4% per year. The base dividend related to 2022 is therefore expected to be €0.52/sh, growing at the same rate over the subsequent years. This base dividend is expected to be paid semi-annually.

Additional supplementary distributions are planned to be made through buybacks, whenever Galp's Net Debt to RCA Ebitda remains below 1x. Total distributions to shareholders (cash dividend + buyback) are limited at 1/3 of the adjusted operational cash flows (OCF).

Buyback Programmes

Related to the 2021 fiscal year, a supplementary distribution of €150 m was decided to be executed through a buyback, which started in May 2022 and is currently ongoing.

On June 30, Galp had acquired 3,417,390 shares (equivalent to 0.43% of the share capital), for an aggregate amount of €40 m.

32

6.7 Reconciliation of IFRS and RCA figures

Ebitda by segment

€m
Second Quarter						First Half
Ebitda IFRS	Inventory effect	RC Ebitda	Special items	RCA Ebitda		Ebitda IFRS	Inventory effect	RC Ebitda	Special items	RCA Ebitda
1,549	(301)	1,248	(4)	1,244	Galp	2,597	(489)	2,108	5	2,114
878	-	878	-	878	Upstream	1,680	-	1,680	-	1,680
119	(22)	97	-	97	Commercial	175	(22)	153	-	153
561	(274)	287	(4)	283	Ind. & Energy Management	747	(467)	279	5	285
(4)	-	(4)	-	(4)	Renewables & New Businesses	(5)	-	(5)	-	(5)
(5)	(5)	(10)	-	(10)	Others	(0)	(0)	(0)	-	(0)

Ebit by segment

€m

Second Quarter						First Half
Ebit IFRS	Inventory effect	RC Ebit	Special items	RCA Ebit		Ebit IFRS	Inventory effect	RC Ebit	Special items	RCA Ebit
1,211	(301)	910	13	924	Galp	1,920	(489)	1,431	31	1,462
653	-	653	-	653	Upstream	1,208	-	1,208	-	1,208
93	(22)	71	-	71	Commercial	124	(22)	102	-	102
480	(274)	205	13	219	Ind. & Energy Management	604	(467)	136	31	168
(4)	-	(4)	-	(4)	Renewables & New Businesses	(5)	-	(5)	-	(5)
(10)	(5)	(15)	-	(15)	Others	(10)	(0)	(10)	-	(10)

6.8 Special Items

€m

	Quarter			Half Year
2Q21	1Q22	2Q22		2021	2022
20	9		(4) Items impacting Ebitda	9	5
0	-	-	Termination agreement for service and equipment (P-71)	(26)	-
20	9	(4)	Matosinhos Refinery	35	5
1	9	17	Items impacting non-cash costs	2	26
1	9	18	Matosinhos Refinery	2	26
184	421		(354) Items impacting financial results	123	67
1	-	7	Gains/losses on financial investments (GGND)	11	7
185	421	(315)	Mark-to-Market of derivatives	148	105
(2)	1	(47)	FX differences from natural gas derivatives	(35)	(46)
(75)	(136)	69	Items impacting taxes	(44)	(67)
(62)	(93)	73	Taxes on special items	(37)	(20)
(22)	(56)	(10)	BRL/USD FX impact on deferred taxes in Brazil	(25)	(66)
8	13	6	Energy sector contribution taxes	18	18
7	17	3	Non-controlling interests (FX on deferred taxes Brazil)	12	20
137	320		(269) Total special items	103	51

6.9 IFRS Consolidated Income Statement

€m
Quarter				Half Year
2Q21	1Q22	2Q22		2021	2022
3,520	5,548	7,153	Sales	6,734	12,700
117	114	76	Services rendered	240	190
55	139	139	Other operating income	123	278
3,691	5,800	7,368	Operating income	7,097	13,168
(2,609)	(4,142)	(5,281)	Inventories consumed and sold	(4,889)	(9,423)
(358)	(460)	(453)	Materials and services consumed	(720)	(913)
(73)	(82)	(77)	Personnel costs	(151)	(159)
(3)	(6)	(0)	Impairments on accounts receivable	(3)	(7)
(4)	(61)	(8)	Other operating costs	(46)	(69)
(3,047)	(4,752)	(5,819)	Operating costs	(5,809)	(10,571)
644	1,048	1,549	Ebitda	1,287	2,597
(267)	(338)		(340) Depreciation, Amortisation and Impairments	(484)	(677)
(0)	(2)	2	Provisions	(0)	(0)
376	709	1,211	Ebit	803	1,920
25	26	54	Net income from associates	16	80
(188)	(453)	16	Financial results	(172)	(437)
4	7	11	Interest income	8	18
(11)	(15)	(16)	Interest expenses	(24)	(31)
4	4	4	Capitalised interest	7	9
(18)	(19)	(20)	Interest on leases (IFRS 16)	(37)	(39)
9	1	48	Exchange gain (loss)	27	49
(185)	(421)	(15)	Mark-to-market of derivatives	(148)	(436)
10	(10)	4	Other financial costs/income	(5)	(6)
213	282	1,281	Income before taxes	646	1,563
(94)	(211)		(470) Taxes1	(319)	(681)
(8)	(19)		(3) Energy sector contribution taxes2	(27)	(22)
111	52	809	Income before non-controlling interests	300	860
(41)	(65)		(82) Income attributable to non-controlling interests	(68)	(147)
71	(13)	726	Net income	232	713

¹ Includes SPT payable in Brazil and IRP payable in Angola.

² Includes €9 m, €9 m and €4 m related to CESE I, CESE II and FNEE, respectively, during 2022.

6.10 Consolidated Financial Position

		31 Dec. 2021	31 Mar. 2022	30 Jun. 2022
Assets
Tangible fixed assets		5,169	5,155	5,430
Goodwill		85	88	89
Other intangible fixed assets		645	605	545
Rights of use (IFRS 16)		1,079	1,064	1,088
Investments in associates		389	451	524
Receivables		294	273	259
Deferred tax assets		485	449	473
Financial investments		559	774	456
	Total non-current assets	8,703	8,860	8,865
Inventories1		1,007	1,296	1,965
Trade receivables		1,381	1,775	2,279
Other receivables		885	1,108	1,217
Financial investments		992	1,598	1,849
Current Income tax recoverable		139	107	14
Cash and equivalents		1,942	2,638	2,065
	Total current assets	6,346	8,521	9,389
	Total assets	15,050	17,381	18,254

€m
	31 Dec. 2021	31 Mar. 2022	30 Jun. 2022
Equity
Share capital	829	829	829
Buybacks	-	-	(40)
Share premium	82	82	82
Reserves	1,327	1,429	1,695
Retained earnings	810	813	582
Net income	4	(14)	713
Total equity attributable to equity holders of the parent	3,052	3,140	3,862
Non-controlling interests	918	896	1,001
Total equity	3,970	4,036	4,863
Liabilities			-
Bank loans and overdrafts	824	804	854
Bonds	2,171	1,851	1,864
Leases (IFRS 16)	1,015	1,009	1,036
Other payables	95	99	105
Retirement and other benefit obligations	300	293	286
Deferred tax liabilities	653	494	550
Other financial instruments	136	260	305
Provisions	1,209	1,272	1,312
Total non-current liabilities	6,403	6,083	6,312
Bank loans and overdrafts	1,055	1,424	581
Bonds	250	950	950
Leases (IFRS 16)	164	157	166
Trade payables	811	1,472	2,059
Other payables	1,328	1,313	1,318
Other financial instruments	1,069	1,946	1,923
Total current liabilities	4,677	7,263	7,079
Total liabilities	11,080	13,345	13,391
Total equity and liabilities	15,050	17,381	18,254

1 Includes €76 m of stocks made on behalf of third parties as of 30 June 2022.

BASIS OF REPORTING

38

7. 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 on June 30 and March 31, 2022 and 2021, and December 31 2021.

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.

Mark-to-market swings related with derivative hedges to cover client positions, which have no direct translation into operating results, are registered as special items.

Following the decision to discontinue the Matosinhos refinery, the Company is now booking all Matosinhos related activities as a special item, in order to provide a better proxy of Galp's refining operations going forward.

With regards to risks and uncertainties, please read Part II – C. III Internal control and risk management (page 45) of Corporate Governance Report 2021, here.

Chairperson: _________________________ Paula Amorim Vice-chairman and Lead Independent Director: _________________________ Miguel Athayde Marques Vice-chairman:

_________________________ Andy Brown

Members:

Filipe Silva

Thore Kristiansen

_________________________

__________________________

__________________________

__________________________

__________________________

__________________________

__________________________

__________________________

Teresa Abecasis

Georgios Papadimitriou

Marta Amorim

Francisco Teixeira Rêgo

Carlos Pinto

Luís Todo Bom

Jorge Seabra

Rui Paulo Gonçalves

__________________________

__________________________

__________________________

__________________________

__________________________

__________________________

__________________________

__________________________

Diogo Tavares

Edmar de Almeida

Cristina Fonseca

Adolfo Mesquita Nunes

Javier Cavada Camino

Claúdia Almeida e Silva

Lisbon, 22 July 2022

8. APPENDIX

8.1 Governing bodies

The composition of the governing bodies of Galp Energia, SGPS, S.A. as of 30 June 2022 is as follows:

Board of Directors

Chairman:

Paula Fernanda Ramos Amorim

Vice-Chairman and Lead Independent Director:

Miguel Athayde Marques

Vice-Chairman:

Andrew Richard Dingley Brown

Members:

Filipe Quintin Crisóstomo Silva Thore Ernst Kristiansen Teresa Alexandra Pires Marques Leitão Abecasis Georgios Papadimitriou Marta Claudia Ramos Amorim Barroca de Oliveira Francisco Vahia de Castro Teixeira Rêgo Carlos Eduardo de Ferraz Carvalho Pinto Luís Manuel Pêgo Todo Bom Jorge Manuel Seabra de Freitas Diogo Mendonça Rodrigues Tavares Rui Paulo da Costa Cunha e Silva Gonçalves

Edmar Luiz Fagundes de Almeida Cristina Neves Fonseca Adolfo Miguel Baptista Mesquita Nunes Javier Cavada Camino Claudia Filipa Henriques de Almeida e Silva de Matos Sequeira

Executive Committee

Chairman: Andrew Richard Dingley Brown (CEO) Members: Filipe Crisóstomo Silva (CFO) Thore Ernst Kristiansen Teresa Alexandra Pires Marques Leitão Abecasis Georgios Papadimitriou Audit Board Chairman: José Pereira Alves Members: Maria de Fátima Castanheira Cortês Damásio Geada Pedro Antunes de Almeida

Alternate:

Amável Alberto Freixo Calhau

Statutory Auditor

Standing:

Ernst & Young Audit & Associados, SROC, S.A., represented by Rui Abel Serra Martins

Alternate:

Manuel Ladeiro de Carvalho Coelho da Mota

General Shareholders Meeting Board

Chairman:

Ana Paz Ferreira da Câmara Perestrelo de Oliveira

Vice-Chairman:

Rafael de Almeida Garrett Lucas Pires

Secretary:

Sofia Leite Borges

Company Secretary

Standing:

Nuno Moraes Bastos

Alternate:

Rita Picão Fernandes

8.2 Statement of compliance of information presented

Statement of compliance of the Board of Directors

According to article 29-J, paragraph 1. c) of the Portuguese Securities Code, each of the members of the Board of Directors of Galp indicated below declares that, to the best of their knowledge, the information provided for in the financial statements concerning the first half of the financial year 2022 was prepared in accordance with the applicable accounting standards and provide a true and a fair view of Galp's assets and liabilities, financial position and results as well as the companies included in the consolidation as a whole, and that the interim management report for the first half of 2022 faithfully describes the main events that occurred during the period and the respective impact on the financial statements, as well as a description of the main risks and uncertainties faced in the remaining six months.

Lisbon, 22 July 2022.

The Board of Directors

INTERIM MANAGEMENT REPORT AND ACCOUNTS 2022

Chairperson: Paula Amorim Vice-Chaiman and Lead Independent Director: Miguel Athayde Marques Vice-Chairman: Andy Brown Members: Filipe Silva Thore Kristiansen Teresa Abecasis Georgios Papadimitriou Marta Amorim Francisco Teixeira Rêgo Carlos Pinto Luis Todo Bom Jorge Seabra de Freitas Diogo Tavares Rui Paulo Gonçalves Edmar de Almeida Cristina Fonseca Adolfo Mesquita Nunes Javier Cavada Camino Cláudia Almeida e Silva

JULY 2022

Statement of compliance of the Audit Board

According to article 420, paragraph 6 of the Companies Code, each of the members of the Audit Board of Galp mentioned below declares that, to the best of their knowledge, the information provided for in the financial statements concerning the first half of the financial year 2022 was prepared in accordance with the applicable accounting standards and provide a true and a fair view of Galp's assets and liabilities, financial position and results as well as the companies included in the consolidation as a whole, and that the interim management report for the first half of 2022 faithfully describes the main events that occurred during the period and the respective impact on the financial statements, as well as a description of the main risks and uncertainties faced in the remaining six months, for what it deserves our agreement.

Lisbon, 22 July 2022.

The Board of Directors

___________________________

___________________________

___________________________

Chairman:

José Pereira Alves

Members:

Maria de Fátima Geada

Pedro Antunes de Almeida

1.	Corporate information ___________________	51
2.	Basis for preparation, changes to the Group's accounting policies and matters related to the condensed consolidated financial statements	___ 51
3.	Segment reporting ________________	53
4.	Tangible assets __________________56
5.	Goodwill and intangible assets _____________56
6.	Leases ___________________	57
7.	Investments in associates and joint ventures ______________58
8.	Inventories________________59
9.	Trade and other receivables _______________60
10.	Other financial assets _________________	61
11.	Cash and cash equivalents ______________	61
12.	Financial debt _________________	62
13.	Trade payables and other payables _____________	63
14.	Taxes and other contributions _________________64
15.	Post-employment benefits______________65
16.	Provisions ____________________66
17.	Other financial instruments _____________66
18.	Non-controlling interests _______________	67
19.	Revenue and income___________________68
20.	Costs and expenses ___________________68
21.	Financial results ________________69
22.	Related party transactions______________69
23.	Subsequent Events ___________________70
24.	Approval of the financial statements ____________	71

Interim Condensed Consolidated Statement of Financial Position

Galp Energia, SGPS, S.A.

Condensed Consolidated Statement of Financial Position as of 30 June 2022 and 31 December 2021

(Amounts stated in million Euros - € m)

Assets	Notes	June 2022	December 2021
Non-current assets:
Tangible assets	4	5,430	5,169
Goodwill and intangible assets	5	635	730
Right-of-use of assets	6	1,088	1,079
Investments in associates and joint ventures	7	524	389
Deferred tax assets	14.1	473	485
Other receivables	9.2	259	293
Other financial assets	10	456	560
Total non-current assets:		8,865	8,703
Current assets:
Inventories	8	1,965	1,007
Other financial assets	10	1,849	992
Current income tax receivable		14	139
Trade receivables	9.1	2,279	1,243
Other receivables	9.2	1,217	885
Cash and cash equivalents	11	2,065	1,942
Total current assets:		9,389	6,208
Total assets:		18,254	14,912

Equity and Liabilities	Notes	June 2022	December 2021
Equity:
Share capital and share premium		911	911
Own shares		(40)	-
Reserves		1,695	1,327
Retained earnings		1,295	813
Total equity attributable to shareholders:		3,862	3,052
Non-controlling interests	18	1,001	918
Total equity:		4,863	3,970
Liabilities:
Non-current liabilities:
Financial debt	12	2,718	2,995
Lease liabilities	6	1,036	1,015
Other payables	13	105	95
Post-employment and other employee benefit liabilities	15	286	300
Deferred tax liabilities	14.1	550	653
Other financial instruments	17	305	136
Provisions	16	1,312	1,209
Total non-current liabilities:		6,312	6,403
Current liabilities:
Financial debt	12	1,531	1,305
Lease liabilities	6	166	164
Trade payables	13	2,059	811
Other payables	13	1,318	1,190
Other financial instruments	17	1,923	1,069
Current income tax payable		80	-
Total current liabilities:		7,079	4,539
Total liabilities:		13,391	10,942
Total equity and liabilities:		18,254	14,912

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 Consolidated Statement of Comprehensive Income

Galp Energia, SGPS, S.A.

Condensed Consolidated Income Statement and Consolidated Statement of Comprehensive Income for the six-month periods ended 30 June 2022 and 30 June 2021

(Amounts stated in million Euros - € m) Unid: € m

	Notes	June 2022	June 2021
Sales	19	12,700	6,734
Services rendered	19	190	240
Other operating income	19	278	123
Financial income	21	33	11
Earnings from associates and joint ventures	7/19	78	16
	Total revenues and income:	13,278	7,124
Cost of sales	20	(9,423)	(4,889)
Supplies and external services	20	(913)	(720)
Employee costs	20	(159)	(151)
Amortisation and depreciation of fixed assets	20	(677)	(434)
Impairment losses on fixed assets	20	-	(50)
Provisions and impairment losses on receivables	20	(7)	(3)
Other operating costs	20	(69)	(46)
Financial expenses	21	(467)	(184)
	Total costs and expenses:	(11,715)	(6,478)
Profit/(Loss) before taxes and other contributions:		1,563	646
Taxes and SPT	14.1	(681)	(319)
Energy sector extraordinary contribution	14.2	(22)	(27)
Consolidated net profit/(loss) for the period		860	300
Attributable to:
Galp Energia, SGPS, S.A. Shareholders		713	232
Non-controlling interests	18	147	68
Basic and Diluted Earnings per share (in Euros)		0.86	0.28
Consolidated net profit/(loss) for the period		860	300
Items which will not be recycled in the future through net income:
Remeasurements		4	5
Income taxes related to remeasurements		(0)	-
Items which may be recycled in the future through net income:			-
Currency translation adjustments		421	179
Hedging reserves		(5)	28
Income taxes related to the above item		1	(7)
Total Comprehensive income for the period, attributable to:		1,281	506
Galp Energia, SGPS, S.A. Shareholders		1,057	404
Non-controlling interests		224	102

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.

49

Interim Condensed Consolidated Statement of Changes in Equity

Galp Energia, SGPS, S.A

Condensed Consolidated Statement of changes in equity for the six-month periods ended 30 June 2022 and 30 June 2021 (Amounts stated in million Euros - € m)

		Share Capital and Share Premium			Reserves			Non
	Share Capital	Share Premium	Own shares	Currency Translation Reserves	Hedging Reserves	Other Reserves	Retained earnings	Sub-Total	controlling interests	Total
As at 1 January 2021	829	82	-	(570)	3	1,535	1,281	3,160	940	4,100
Consolidated net profit for the period	-	-	-	-	-	-	232	232	68	300
Other gains and losses recognised in equity	-	-	-	146	21	-	5	172	34	205
Comprehensive income for the period	-	-	-	146	21	-	236	404	102	506
Dividends distributed	-	-	-	-	-	-	(290)	(290)	(44)	(334)
Decrease in reserves	-	-	-	-	-	-	-	-	(47)	(47)
As at 30 June 2021	829	82	-	(424)	24	1,535	1,227	3,273	952	4,225
	-	-	-	-	-	-	-	-	-	-
Balance as at 1 January 2022	829	82	-	(232)	24	1,535	813	3,052	918	3,970
Consolidated net profit for the period	-	-	-	-	-	-	713	713	147	860
Other gains and losses recognised in equity	-	-	-	371	(4)	-	(23)	344	78	422
Comprehensive income for the period	-	-	-	371	(4)	-	690	1,057	224	1,281
Dividends distributed	-	-	-	-	-	-	(207)	(207)	(141)	(349)
Repurchases of shares	-	-	(40)	-	-	-	-	(40)	-	(40)
Increase/decrease in reserves	-	-	-	-	-	-	-	-	-	-
Balance as at 30 June 2022	829	82	(40)	139	20	1,535	1,295	3,863	1,001	4,863

The accompanying notes form an integral part of the condensed consolidated statement of changes in equity and should be read in conjunction.

Interim Condensed Consolidated Statement of Cash Flow

Galp Energia, SGPS, S.A.

Condensed Consolidated Statement of Cash Flow for the six-month periods ended 30 June 2022 and 30 June 2021

(Amounts stated in million Euros - €m)

	Notes	June 2022	June 2021
Income/(Loss) before taxation for the period		1,563	646
Adjustments for:
Depreciation, depletion and amortisation	20	677	484
Adjustments to net realisable value of inventories	20	12	12
Interest Expense, net	21	434	172
Underlifting and/or Overlifting	19;20	(147)	11
Share of profit/(loss) of joint ventures and associates	19	(78)	(16)
Others		(1)	1
Increase / decrease in assets and liabilities:
(Increase) in inventories		(1,011)	(156)
(Increase)/decrease in current receivables		(1,035)	(288)
(Decrease)/increase in current payables		1,186	197
(Increase)/decrease in other receivables, net		(150)	(90)
Derivatives		(49)	(94)
Other (Increase)/decrease in other receivables, net		(101)	5
Dividends from associates		9	90
Taxes paid		(520)	(246)
Cash flow from operating activities		940	817
Capital expenditure in tangible and intangible assets		(289)	(396)
Investments in associates and joint ventures, net		0	460
Other investment cash outflows, net		(76)	(57)
Cash flow from investing activities		(365)	7
Loans obtained		2,244	2.533
Loans repaid		(2,197)	(3.046)
Interest paid		(18)	(43)
Leases repaid		(61)	(54)
Interest on leases paid		(39)	(37)
Change in non-controlling interest		0	(46)
Acquisition of own stocks		(40)	0
Dividends paid to Galp shareholders		(207)	(290)
Dividendos paid to non-controlling interests		(111)	(32)
Cash flow from financing activities		(429)	(1.015)
(Decrease)/increase in cash and cash equivalents		146	(191)
Currency translation differences in cash and cash equivalents		96	37
Cash and cash equivalents at the beginning of the period		1,811	1.675
Cash and cash equivalents at the end of the period		2,053	2,053

The accompanying notes form an integral part of the condensed consolidated statement of Cash Flow and should be read in conjunction.

Notes to the Condensed Consolidated Financial Statements

1. Corporate information

INTERIM MANAGEMENT REPORT AND ACCOUNTS 2022

Galp Energia SGPS, S.A. (the Company) has its Head Office in Lisbon, Portugal and its shares are listed on Euronext Lisbon.

2. Basis for preparation, changes to the Group's accounting policies and matters related to the condensed consolidated financial statements

2.1. Basis for preparation

The condensed consolidated financial statements for the six-month period ended 30 June 2022 were prepared in accordance with IAS 34 - Interim Financial Reporting.

The Galp Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Board of Directors considers that there no material uncertainties that may cast doubt over this assumption. The Board has formed a judgement that there is a reasonable expectation that the 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 financial statements do not include all of 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 2021.

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

Future long-term commodity price assumptions and management's view on the future development of refining margins represent a significant estimate. Future long-term commodity price assumptions were not subject to change in the second quarter 2022.

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 2021.

We have not identified impairment indicators that lead us to a detailed impairment analysis as at 30 June 2022, except for certain exploration assets as detailed in note 4.

2.3. Changes to IFRS not yet adopted

IFRS 17 Insurance contracts was issued in 2017, with amendments published in 2020 and 2021, and is to be adopted for annual reporting periods beginning on or after January 1, 2023. No significant impact of adoption of the standard is expected.

Several amendments apply for the first time in 2022, but do not have an impact on the interim condensed consolidated financial statements of the Group. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

JULY 2022

2.4. Macroeconomic event and financial derivatives

During Q2 2022 we have continued to witness major volatility in prices of all oil, gas and electricity products with increased tendency of market prices, due to decreased russian supply partially driven by the sanctions imposed by several countries.

Given the high volatility in energy prices verified in international markets the mark-to-market of financial derivatives held by Galp impacted Galp's suffered volatility of Mark-to-Market in Financial results, mostly related to refining margin, brent and natural gas. Some of the derivatives require margin deposits which temporarily affect Galp's cash position. As at 30 June 2022, Galp's working capital includes €638 m related to gas derivatives margin accounts.

2.5. Profit or Loss comparables

Profit or Loss of June 2022 compared to June 2021 showed significant fluctuations suffered high volatility in some captions. This results from an increase of economic activity was observed against a prior period affected by the Covid-19 economic slowdown as well as from an increase of commodity prices due to the war in Ukraine.

2.6. Changes to the consolidation perimeter

During the six-month period Galp has acquired the following entities:

Legal Entity	Country	% Acquired	Transaction	Consolidation Method
Aurora Lith, S.A.	Portugal	50,00%	Acquisition of Joint control	Equity Method
Cascudo Solar Energia, Ltda.	Brazil	100%	Acquisition of Control	Full consolidation
Enercapital Power Italia, S.A.	Italy	100%	Acquisition of Control	Full consolidation
Hytlantic, S.A.	Portugal	28,50%	Acquisition of significant influence	Equity Method
Ventinveste, S.A.	Portugal	remaining 50%	Acquisition of control	Full consolidation

All entities in the table above were incorporated, except for the acquisition of the remaining 50% in Ventinveste, which was acquired by an amount of €6.4m.

2.7. Acquisition of owns 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. Any difference between the carrying amount and the consideration, if reissued, is recognised as share premium.

Galp Shareholders approved the acquisition of own shares up to 9% of its Share capital. As such, Galp has initiated on the 12 May a programme to repurchase Galp Energia SGPS, S.A. own shares in the amount of €150m. After the conclusion of the programme, and until year-end 2022, the shares bought back will be canceled.

Galp has instructed Morgan Stanley Europe SE to act as a principal without risk for the execution of the programme to repurchase the shares on Euronext Lisbon.

Until 30 June 2022 3.417.390 shares were acquired at an average price of €11,62/shares, totalling €39,7m.

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 & Energy Management; (iii) Commercial and (iv) Renewables and New Businesses.

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 and Angola.

The Industrial & Energy Management segment incorporates the refining and logistics business, as well as the Group's oil, 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, power and non-fuel products. This commercial activity is focused in Iberia but also extends to certain countries in Africa.

The Renewables & New Businesses segment encompasses renewables power generation, mobility and new businesses.

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 various 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.

Segmented 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.

The replacement cost financial information for the segments identified above, for the six-month periods ended 30 June 2022 and 2021, is as follows:

														Unit: € m
	Consolidated Upstream			Industrial & Energy Commercial Management		Renewables and New businesses		Others		Consolidation adjustments
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Sales and services rendered	12,890	6,974	1,883	1,208	5,409	3,077	6,280	3,235	58	22	114	90	(854)	(659)
Cost of sales	(9,912)	(5,114)	93	1	(4,635)	(2,862)	(5,820)	(2,737)	(48)	(13)	(11)	(19)	509	515
of which Variation of Production	261	118	(1)	18	(61)	100	326	-	(2)	(1)	(0)	-	-	-
Other revenue & expenses	(870)	(797)	(296)	(277)	(495)	(206)	(306)	(357)	(14)	(17)	(104)	(84)	344	144
of which Under & Overlifting	147	(11)	147	(11)	-	-	-	-	-	-	-	-	-	-
EBITDA at Replacement Cost	2,108	1,062	1,680	932	279	9	153	142	(5)	(8)	(0)	(13)	(0)	(0)
Amortisation, depreciation and impairment losses on fixed assets	(677)	(484)	(473)	(303)	(142)	(122)	(51)	(50)	(0)	(1)	(11)	(7)	-	-
Provisions (net)	(0)	(0)	0	1	(1)	(0)	(0)	(0)	-	2	1	(3)	-	-
EBIT at Replacement Cost	1,431	578	1,208	630	136	(113)	102	92	(5)	(8)	(10)	(23)	(0)	(0)
Earnings from associates and joint ventures	80	16	4	4	(6)	10	3	6	77	(4)	2	0	-	-
Financial results	(437)	(172)	-	-	-	-	-	-	-	-	-	-	-	-
Taxes at Replacement Cost	(536)	(262)	-	-	-	-	-	-	-	-	-	-	-	-
Energy Sector Extraordinary Contribution	(22)	(27)	-	-	(10)	(12)	(4)	(9)	-	-	(8)	(6)	-	-
Consolidated net income at Replacement Cost, of which:	516	131	-	-	-	-	-	-	-	-	-	-	-	-
Attributable to non-controlling interests	147	68	-	-	-	-	-	-	-	-	-	-	-	-
Attributable to shareholders of Galp Energia SGPS SA	369	63	-	-	-	-	-	-	-	-	-	-	-	-
OTHER INFORMATION Segment Assets (1)
Financial investments (2)	524	389	251	200	9	24	14	22	234	145	16	4	-	(6)
Other assets	17,730	14,523	7,841	6,553	4,647	3,606	3,290	2,693	584	500	2,042	2,285	(674)	(1,114)
Segment Assets	18,254	14,911	8,092	6,753	4,656	3,629	3,304	2,714	818	646	2,058	2,289	(674)	(1,120)
of which Rights of use of assets	1,088	1,079	640	587	169	184	206	179	7	0	67	72	-	56
Investment in Tangible and Intangible Assets	417	408	266	347	17	18	32	23	90	13	13	9	-	-
1) Net amount
2) Accounted for based on the equity method of accounting

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 1	EBITDA RC			Tangible and intangible assests	Financial investiments
	2022	2021	2022	2021	2022	2021	2022	2021
	12,890	6,974	2,108	1,062	2,108	5,899	6,064	388
Europe	10,177	6,102	253	(716)	253	1,574	1,545	130
Latin America	2,376	699	1,657	1,781	1,657	3,204	3,317	42
Africa	337	174	198	(3)	198	1,121	1,203	216

1 Net consolidation operation

The reconciliation between the segment reporting and the Condensed Consolidated Income Statement for the periods ended 30 June 2022 and 30 June 2021 was as follows:

		Unit: € m
	2022	2021
Sales and services rendered	12,890	6,974
Cost of sales	(9,423)	(4,889)
Replacement cost adjustments (1)	(489)	(225)
Cost of sales at Replacement Cost	(9,912)	(5,114)
Other revenue and expenses	(870)	(797)
Depreciation and amortisation	(677)	(484)
Provisions (net)	(0)	(0)
Earnings from associates and joint ventures	80	16
Financial results	(437)	(172)
Profit before taxes and other contributions at Replacement Cost	1,074	421
Replacement Cost adjustments	489	225
Profit before taxes and other contributions at IFRS	1,563	646
Income tax	(681)	(319)
Income tax on Replacement Cost Adjustment (2)	145	57
Energy Sector Extraordinary Contribution	(22)	(27)
Consolidated net income for the period at Replacement Cost	516	131
Replacement Cost (1) +(2)	344	169
Consolidated net income for the period based on IFRS	860	300

4. Tangible assets

					Unit: € m
	Land, natural resources and buildings	Plant and machinery	Other equipment	Assets under construction	Total
As at 30 June 2022
Acquisition cost	1,278	12,160	502	2,307	16,247
Impairment	(77)	(1,549)	(6)	(247)	(1,879)
Accumulated depreciation and depletion	(743)	(7,745)	(450)	-	(8,938)
Net Value	458	2,866	46	2,060	5,430
Balance as at 1 January 2022	462	2,866	46	1,794	5,169
Additions	0	2	0	322	325
Depreciation, depletion and impairment	(10)	(338)	(31)	(100)	(479)
Disposals/Write-offs	(0)	(8)	(1)	0	(10)
Transfers	4	118	7	(129)	-
Currency exchange differences and other adjustments	2	226	25	173	426
Balance as at 30 June 2022	458	2,866	46	2,059	5,430

During the six-month period under review the Group has made Upstream investments in the amount of €241 m, essentially related to projects in Brazil (€210 m), Angola (€18 m) and Mozambique (€3 m) and in the businesses units Industrial & Energy Management (€39 m), Renewables (€32 m) and Commercial (€3 m). The additions to tangible assets for the six-month period ended 30 June 2022 also include the capitalisation of financial charges amounting to €9 m (Note 21).

An analysis on Exploration and Appraisal of Brazilian assets was conducted during Q2 in relation to the economic and technical viability of potencial oil resources, thus was determined an impairment of €212m of tangible assets (€102m) and intangible assets (€110m) (note 5).

5. Goodwill and intangible assets

				Unit: € m
	Industrial properties and other rights	Intangible assets in progress	Goodwill	Total
As at 30 June 2022
Acquisition cost	1,145	80	91	1,316
Impairment	(137)	(25)	(2)	(163)
Accumulated amortisation	(519)	-	-	(519)
Net Value	489	56	89	635
Balance as at 1 January 2022	595	50	84	729
Additions	0	12	-	12
Amortisation and impairment	(128)	-	-	(128)
Write-offs/Disposals	(0)	-	-	(0)
Transfers	7	(9)	2	-
Currency exchange differences and other adjustments	17	2	3	22
Balance as at 30 June 2022	488	55	89	635

6. Leases

Right-of-use assets

						Unit: € m
	FPSO's1	Buildings	Service stations		Vessels Other usage rights	Total
As at 30 June 2022
Acquisition cost	760	91	273	158	211	1,494
Accumulated amortisation	(168)	(16)	(71)	(103)	(48)	(405)
Net Value	592	76	202	55	164	1,088
As at 1 January 2022	565	75	212	59	168	1,079
Additions	-	0	15	11	2	29
Amortisation	(23)	(3)	(16)	(20)	(7)	(69)
Write-offs/Disposals	-	(0)	(6)	-	(0)	(6)
Currency exchange differences and other adjustments	50	4	(2)	4	1	57
Balance as at 30 June 2022	592	76	202	55	164	1,088

¹ Floating, production, storage and offloading unit.

Lease liabilities

		Unit: € m
	June 2022	December 2021
Maturity analysis – contractual undiscounted cash flow	1,809	1,696
Less than one year	183	174
One to five years	614	573
More than five years	1,012	949
Lease liabilities included in the statement of financial position	1,202	1,179
Non current	1,036	1,015
Current	166	164

The amounts recognised in consolidated profit or loss were as follows:

		Unit: € m
	June 2022	June 2021
	249	184
Interest on lease liabilities	39	37
Expenses related to short term, low value and variable payments of operating leases 1	210	147

¹ Includes variable payments and short term leases recognised under the heading of transport of goods.

Amounts recognised in the consolidated statement of cash flow were as follows:

		Unit: € m
	June 2022	June 2021
Financing activities	100	91
(Payments) relating to leasing (IFRS 16)	61	54
(Payments) relating to leasing (IFRS 16) interests	39	37

7. Investments in associates and joint ventures

		Unit: € m
	June 2022	December 2021
	524	389
Joint ventures	429	311
Associates	95	78

7.1 Investments in joint ventures

						Unit: € m
	As at 31 December 2021	Share capital increase/ decrease	Equity Method	Other adjustments	Dividends	As at 30 June 2022
	311	48	77	(6)	-	429
Titan 2020, SA	88	-	71	1	-	160
Coral FLNG, S.A.	201	42	-	6	-	249
Other joint ventures	22	6	6	(13)	-	20

7.2 Investments in associates

						Unit: € m
	As at 31 December 2021	Share capital increase/ decrease	Equity Method	Other adjustments	Dividends	As at 30 June 2022
	78	(10)	9	18	-	95
Tauá Brasil Palma, S.A.	43	-	7	11	-	61
Sonangalp - Sociedade Distribuição e Comercialização de Combustíveis, Lda.	9	1	-	(1)	-	9
Galp Gás Natural Distribuição	8	-	-	-	-	8
Geo Alternativa, S.L.	4	3	-	-	-	7
Other associates	14	(13)	1	7	-	9

In the caption of Earnings from associates and joint ventures in the Condensed Consolidated Income Statement is a result of €8 m. The amount reflected the obligation assumed by Galp with the Galp Gás Natural Distribuição, S.A.(GGND) shareholders in relation to the CESE I liability (€7 m).

8. Inventories

		Unit: € m
	June 2022	December 2021
	1,965	1,007
Raw, subsidiary and consumable materials	422	184
Crude oil	286	105
Other raw materials	136	79
Raw materials in transit	207	-
Finished and semi-finished products	830	592
Goods	541	277
Adjustments to net realisable value	(35)	(46)

The movements in the adjustments to net realisable value balance for the six-month period ended 30 June 2022 were as follows:

					Unit: € m
	Raw, subsidiary and consumable materials	Finished and semi-finished products	Goods	Adjustments	Total
Adjustments to net realisable value at 1 January 2022	16	11	18	-	46
Net reductions	15	(7)	(18)	(2)	(12)
Other adjustments	-	-	-	1	1
Adjustments to net realisable value at 30 June 2022	31	4	-	(1)	35

The reduction of €12m was recognised in the caption cost of sales being part of the consolidated Profit or Loss. This reduction, which resulted on the application on the Net realizable Value (NRV), was caused by the price fluctuation in the markets during the period under analysis.

9. Trade and other receivables

9.1. Trade receivables

			Unit: € m
		June 2022	December 2021
	Notes	Current	Current
		2,279	1,243
Trade receivables		2,418	1,379
Impairments	9.3	(139)	(136)

9.2. Other receivables

					Unit: € m
			June 2022		December 2021
	Notes	Current	Non-current	Current	Non-current
		1,217	259	885	293
State and other Public Entities		60	0	25	7
Other debtors		555	135	303	132
Non-operated oil blocks		93	-	86	-
Underlifting		198	-	46	-
Other receivables		264	135	171	132
Related Parties		(2)	-	2	0
Contract Assets		531	64	447	67
Sales and services rendered but not yet invoiced		361	-	111	-
Adjustments to tariff deviations - "pass through"		26	-	24	-
Other accrued income		143	64	312	67
Deferred charges		78	60	113	87
Energy sector extraordinary contribution (CESE II)	14.2	9	21	10	25
Deferred charges for services		8	13	4	14
Other deferred charges		60	26	98	49
Impairment of other receivables	9.3	(5)	-	(5)	-

The balance of €198 m recorded in "Other debtors – Underlifting" corresponds to the amounts receivable by the Group as a result of the lifting of barrels of crude oil below the production quota, and is valued at the lower of the market price as at the sale date and the market price as at 30 June 2022.

Other deferred charges (non-current) include the amount of €25 m relating to post-employment benefits (Note 15).

9.3. Impairment of Trade Receivables and Other Receivables

The movements in the impairment of trade receivables and other receivables, for the six-month period ended 30 June 2022, were as follow:

						Unit: € m
	Opening balance	Increase	Decrease	Utilisation	Others	Closing balance
	141	8	(1)	-	(4)	144
Trade receivables	136	5	(1)	-	(1)	139
Other receivables	5	3	-	-	(3)	5

10. Other financial assets

As at 30 June 2022 and 31 December 2021 Other financial assets were as follow:

			Unit: € m
	June 2022	December 2021
Current	Non-current	Current	Non-current
			560
			114
			7
			411
-	56	-	27
Notes 17	1,849 1,461 - 388	456 295 3 102	992 992 - -

The balance in the current portion is predominantly related to a shareholder loan to Group Titan 2020, S.A., of €364m.

Financial assets at fair value through profit or loss refer to financial derivatives (note 17). Increase is mainly related to the high volatility observed in commodity prices, that impacts Mark-to-Market.

11. Cash and cash equivalents

			Unit: € m
	Notes	June 2022	December 2021
		2,053	1,811
Cash at bank		2,065	1,942
Bank overdrafts	12	(12)	(131)

12. Financial debt

					Unit: € m
			June 2022		December 2021
	Notes	Current	Non-current	Current	Non-current
		1,531	2,718	1,305	2,995
Bank loans		581	854	1,055	824
Origination fees		-	-	-	-
Loans and commercial paper		569	854	924	824
Bank overdrafts	12	12	-	131	-
Bonds and notes		950	1,864	250	2,171
Origination fees		-	(8)	-	(6)
Bonds		450	1,373	250	1,177
Notes		500	500	-	1,000

Changes in financial debt during the period from 31 December 2021 to 30 June 2022 were as follows:

						Unit: € m
	Opening balance	Loans obtained	Principal Repayment	Changes in Overdrafts	Foreign exchange rate differences and others	Closing balance
	4,300	2,244	(2,197)	(118)	21	4,250
Bank Loans:	1,879	1,564	(1,897)	(118)	8	1,436
Origination fees	(0)	-	-	-	-	-
Loans and commercial papers	1,748	1,564	(1,897)	-	8	1,423
Bank overdrafts	131	-	-	(118)	(0)	12
Bond and Notes:	2,421	680	(300)	-	14	2,814
Origination fees	(6)	-	-	-	(2)	(8)
Bonds	1,427	680	(300)	-	16	1,823
Notes	1,000	-	-	-	-	1,000

The average cost of financial debt for the period under review, including charges for credit lines, amounted to 1.44%.

Financial debt, excluding origination fees and bank overdrafts, had the following repayment plan as at 30 June 2022:

			Unit: € m
			Loans
Maturity	Total	Current	Non-current
	4,246	1,519	2,727
2022	559	559	-
2023	970	960	10
2024	513	-	513
2025	505	-	505
2026	748	-	748
2027 and following	951	-	951

Galp decided to exercise the call option with respect to the total outstanding amount of the notes representing the bond issue "EUR 150 M. FLOATING RATE NOTES DUE 2024" (CVM Code: GALDOM) ("Notes"). The redemption of the Notes will be made at principal amount thereof plus accrued interest and will occur on the 29th of July 2022 (payment date of the current Interest Period). Cancellation of the Notes will follow.

13. Trade payables and other payables

				Unit: € m
		June 2022		December 2021
	Current	Non-current	Current	Non-current
Trade payables	2,059	-	811	-
Other payables	1,318	105	1,191	95
State and other public entities	448		475	-
Payable VAT	345	-	237	-
Tax on oil products (ISP)	55	-	196	-
Other taxes	48		42	-
Other payables	227	45	235	50
Suppliers of tangible and intangible assets	98	45	166	50
Advances on sales	-	-	-	-
Overlifting	-	-	-	-
Other Creditors	129	-	69	-
Related parties	29	-	4	-
Other accounts payable	23	8	38	7
Accrued costs	541	43	409	29
External supplies and services	385	-	242	-
Holiday, holiday subsidy and corresponding contributions	38	4	58	4
Other accrued costs	118	38	108	24
Contract liabilities	48	-	28	-
Other deferred income	1	10	2	11

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 and the Netherlands, 31.5% in Portugal, and 34% for companies based 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..

The Company and its subsidiaries' income tax estimates are recorded based on the taxable income.

Taxes and SPT recognised in the condensed consolidated income statement for the six-month periods ended 30 June 2022 and 30 June 2021 were as follows:

						Unit: € m
			June 2022			June 2021
	Current tax	Deferred tax	Total	Current tax	Deferred tax	Total
Taxes for the period	746	(65)	681	301	17	319
Current income tax	323	(62)	261	48	20	68
Oil income Tax (IRP)	20	(3)	16	14	(3)	11
Special Participation Tax (SPT)	403	-	403	239	-	239

As at 30 June 2022, the movements in deferred tax assets and liabilities were as follows:

					Unit: € m
	As at 31 December 2021	Impact on the income statement	Impact on equity	Foreign exchange rate changes	As at 30 June 2022
Deferred Taxes – Assets	485	(31)	1	17	473
Adjustments to tangible and intangible assets	44	29	-	6	78
Retirement benefits and other benefits	87	(4)		-	83
Tax losses carried forward	80	(52)	-	()	27
Regulated revenue	7		-	-	7
Temporarily non-deductible provisions	194	(5)	-	6	194
Potential foreign exchange rate differences in Brazil	40	(40)	-	-	-
Others	33	42	1	5	82
Deferred Taxes – Liabilities	(654)	96	-	7	(550)
Adjustments to tangible and intangible assets	(616)	84	-	7	(524)
Adjustments to the fair value of tangible and intangible assets	(10)	10	-	-	-
Regulated revenue	(13)	-	-	-	(13)
Potential foreign exchange rate differences in Brazil	-	-	-	-	-
Others	(15)	2	-		(12)

14.2. Energy Sector Extraordinary Contribution

					Unit: € m
		Statement of financial position
		Provisions (Note 16)	"CESE II" Deferred Charges (Note 9.2)		Energy Sector Extraordinary Contribution
	CESE I	CESE II	Current	Non-current
As at 1 January 2022	(125)	(238)	10	25	-
"CESE I" Increase	(9)	-	-	-	9
"CESE II" Increase	-	(4)	(1)	(4)	9
Fondo Nacional de Eficiencia Energética (FNEE)	-	-	-	-	4
As at 30 June 2022	(134)	(242)	9	21	22

15. Post-employment benefits

On 30 June 2022 and 31 December 2021, the assets of the Pension Funds, valued at fair value, were as follows, in accordance with the report presented by the pension plan management company:

		Unit: € m
	June 2022	December 2021
Total	217	248
Shares	45	58
Bonds	124	145
Real Estate	44	43
Liquidity	2	2
Others	2	1

As at 30 June 2022 and 31 December 2021, the details of post employment benefits were as follow:

		Unit: € m
	June 2022	December 2021
Assets under the heading "Other Receivables"	25	48
Liabilities	(286)	(300)
Net responsibilities	(262)	(252)
Liabilities, of which:	(478)	(500)
Past service liabilities covered by the pension fund	(193)	(200)
Other employee benefit liabilities	(286)	(300)
Assets	217	248

16. Provisions

During the six-month period ended 30 June 2022, the movements in Provisions were as follows:

					Unit: € m
		June 2022
	Decomissioning/ environmental provisions	CESE (I and II)	Other provisions	Total	December 2021
At the beginning of the period	645	363	200	1,208	1,008
Additional provisions and increases to existing provisions	7	13	2	22	154
Decreases of existing provisions	(1)	()	(1)	(2)	(23)
Amount used during the period	(4)	-	()	(4)	(21)
Adjustments during the period	37		50	88	90
At the end of the period	685	376	251	1,312	1,208

17. Other financial instruments

										Unit: € m
June 2022								December 2021
		Assets (Note 10)	Liabilities			Assets (Note 10)		Liabilities
	Current	Non current	Current	Non current	Equity	Current	Non current	Current	Non current	Equity
	1,461	295	(1,923)	(305)	25	992	114	(1,069)	(136)	31
Commodity swaps	1,152	295	(1,923)	(300)	(11)	786	113	(1,069)	(136)	(18)
Options	(0)	-	-	-	-	-	-	-	-	-
Commodity futures	273	-	-	-	35	188	-	-	-	49
Forwards	37	0	-	(4)	-	18	2	-	-	0

The accounting impacts of gains and losses on derivative financial instruments on the income statement and comprehensive income as at 30 June 2022 and 2021 are presented below:

								Unit: € m
				June 2022				June 2021
		Income statement		Income statement
	MTM	Realised	MTM + Realised	Equity	MTM	Realised	MTM + Realised	Equity
	(422)	(154)	(577)	(6)	(113)	89	(23)	20
Commodities	(436)	(176)	(612)	(6)	(148)	98	(50)	20
Swaps	(477)	54	(423)	7	(13)	101	88	1
Swaps - Fair value hedge	(2)	-	(2)	-	(14)	-	(14)	-
Options	1	(2)	(1)	-	(17)	(18)	(35)	-
Futures	42	(228)	(186)	(14)	(105)	16	(89)	19
Currency	14	22	35	-	35	(9)	26	-
Forwards	14	22	35	-	35	(9)	26	-

The table above includes a positive MTM of Swaps derivatives (€54 m) related to Synthetic Power Purchase Agreements of solar projects in Spain, for which the fair value valuations were not based on observable market data (level 3). The derivatives commencement date ocurred during 2020 and have a life span of approximate 12 years. With these Synthetic Power Purchase Agreements a fixed quantity of Guarantees of Origin will be transferred from the solar projects to Galp during the same time frame.

During Q2, high volatility in energy prices was observed which led to high variation in MTM compared with the prior period (Note 2.4.).

The realised results of derivative financial instruments are mainly recognised as part of the cost of sales (Note 21), financial income or expenses.

The breakdown of the financial results related to derivative financial instruments (Note 21) is as follows:

		Unit: € m
	June 2022	June 2021
	(436)	(149)
Commodity Swaps	(479)	(27)
Options	1	(17)
Commodity Futures	42	(105)
Other trading operations	-	-

The table above excludes MTM and gains or losses on FX Forwards which are reflected in the caption of Foreign exchange gains/losses.

18. Non-controlling interests

(a) Non-controlling interest dividends in the amount of €141 m were declared during the period, of which €111 m were already paid.

19. Revenue and income

The details of revenue and income for the six-month periods ended 30 June 2022 and 30 June 2021 were as follow:

			Unit: € m
	Notes	June 2022	June 2021
		13,278	7,124
Total sales		12,700	6,734
Goods		7,112	2,939
Products		5,588	3,792
Exchange differences			2
Services rendered		190	240
Other operating income		278	123
Underlifting income		147
Others		131	123
Earnings from associates and joint ventures	7	78	16
Financial income	21	33	11

20. Costs and expenses

The details of costs and expenses, for the six-month periods ended 30 June 2022 and 30 June 2021 were as follow:

			Unit: € m
	Notes	June 2022	June 2021
Total costs and expenditure:		11,715	6,478
Cost of sales		9,423	4,889
Raw and subsidiary materials		2,029	2,841
Goods		6,228	1,050
Tax on oil products		1,228	1,166
Variations in production		(261)	(118)
Write downs on inventories	8	(12)	12
Financial derivatives	17	176	(61)
Exchange differences		0
Costs related to CO2 emissions		35
External supplies and services		913	720
Subcontracts - network use		123	177
Transportation of goods		101	112
E&P - production costs		72	51
E&P - exploration costs		23	13
Royalties		176	98
Other costs		418	269
Employee costs		159	151
Amortisation, depreciation and impairment losses
on fixed assets	4/ 5/ 6	677	484
Provision and impairment losses on receivables	9,3 / 16	7	3

Other costs		69	46
Other taxes		12	10
Overlifting costs		-	11
Other operating costs		57	25
Financial expenses	21	467	184

21. Financial results

The details of financial income and costs for the six-month periods ended 30 June 2022 and 30 June 2021 were as follow:

			Unit: € m
	Notes	June 2022	June 2021
		(434)	(172)
Financial income		33	11
Interest on bank deposits		19	3
Interest and other income from related companies		7	5
Other financial income		7	3
Derivative financial instruments	17	-	-
Premium options		-	-
Financial expenses		(467)	(184)
Interest on bank loans, bonds, overdrafts and others		(27)	(24)
Interest from related parties		(1)	-
Interest capitalised within fixed assets	4	9	7
Interest on lease liabilities	6	(39)	(37)
Derivative financial instruments	17	(436)	(148)
Exchange gains/(losses)		49	27
Other financial costs		(22)	(8)

22. Related party transactions

The Group had the following transactions with related parties:

				Unit: € m
		June 2022	December 2021
	Current	Non-current	Current	Non-current
Assets:	431	47	44	411
Associates	32	47	3	65
Joint ventures	396	-	31	346
Other related entities	3	-	10	-

Unit: € m

	June 2022		December 2021
	Current	Non-current	Current	Non-current
Liabilities:	(82)	(65)	(61)	(84)
Associates	(1)	(65)	(4)	(84)
Joint Ventures	(51)	-	(54)	-
Winland International Petroleum, S.A.R.L.	(29)	-	(4)	-
Other related entities	-	-	-	-

Unit: € m

	June 2022			June 2021
	Purchases	Operating cost/income	Financial costs/income	Purchases	Operating cost/income	Financial costs/income
Transactions:	(21)	(24)	7	(8)	(33)	1
Associates	-	(23)	-	(1)	(43)	1
Joint Ventures	(21)	(14)	4		- (5)	-
Other related entities	-	13	3	(7)	15	-

¹ Energy purchases from Joint Venture Titan 2020, S.A..

23. Subsequent Events

Galp acquired on July 21 2022 the 24.99% it did not already own in Titan 2020 S.A. (Titan), the company created in September 2020 as a joint venture with the ACS Group. The stake was a acquired for a total consideration of €140 m paid to Cobra, which had since acquired the position from ACS.

Galp will start to fully consolidate Titan in its financial statements.

24. Approval of the financial statements

The consolidated financial statements were approved by the Board of Directors on 22 July 2022.

Chairperson: _________________________ Paula Amorim Vice-chairman and Lead Independent Director: _________________________ Miguel Athayde Marques Vice-chairman: _________________________ Andy Brown Members: _________________________ Filipe Silva __________________________ Thore Kristiansen __________________________ Teresa Abecasis __________________________ Georgios Papadimitriou __________________________ Marta Amorim __________________________ Francisco Teixeira Rêgo __________________________ Carlos Pinto __________________________ Jorge Seabra __________________________ Rui Paulo Gonçalves __________________________ Diogo Tavares __________________________ Edmar de Almeida __________________________ Cristina Fonseca __________________________ Adolfo Mesquita Nunes __________________________ Javier Cavada Camino __________________________ Claúdia Almeida e Silva

Luís Todo Bom

__________________________

Accountant:

72

INTERIM MANAGEMENT REPORT AND ACCOUNTS 2022 JULY 2022

_________________________ Cátia Cardoso

9. 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 natural gas derivatives hedges, capital gains or losses on the disposal of assets, extraordinary taxes, 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 & Energy Management 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 PV: photovoltaic p.p.: percentage point Q: Quarter QoQ: Quarter -on -quarter

R&N B: Renewables & New Businesses REN: Rede Eléctrica Nacional RC: Replacement Cost RCA: Replacement Cost Adjusted 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

Galp Energia, SGPS, S.A. Investor Relations

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

Contacts: +351 21 724 08 66

Address: Rua Tomás da Fonseca, Torre A, 1600-209 Lisbon Portugal

Website: www.galp.com/corp/en/investors Email: investor.relations@galp.com

Reuters: GALP.LS Bloomberg: GALP PL