Galp Energia

Quarterly Report • Feb 13, 2023

4 th QUARTER AND FULL YEAR 2022

13 February, 2023 Unaudited

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.	Renewables & New Businesses	13
4.	Industrial & Midstream	16
5.	Commercial	19
6. 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10	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 Consolidated Financial Position	22 23 25 25 26 29 30 31 32 33 34
7.	Basis of Reporting	36
8.	Definitions	38

1. RESULTS HIGHLIGHTS

Fourth quarter 2022

Galp's 4Q22 results reflect a robust operational performance, with Upstream and Industrial activities capturing the supportive macro environment. Free cash flow generation was strong, at €737 m, also supported by a working capital release, enabling net debt to be reduced during the period to €1,555 m.

RCA Ebitda reached €951 m, 48% higher YoY:

• Upstream: RCA Ebitda was €791 m, up YoY, supported by the improved operational performance and benefitting from the favourable oil price environment.

Working Interest (WI) production was up 5% YoY, reflecting reduced maintenance interventions and the ramp-up of Berbigão / Sururu and Sépia in Brazil, as well as the start-up of Coral FLNG, in Mozambique.

• Renewables & New Businesses: RCA Ebitda was €17 m, with all renewables' projects in operation now consolidated into Galp's accounts.

Renewables installed capacity reached 1.4 GW, following the commercial startup at year-end of c.100 MW of solar projects in Iberia.

• Industrial & Midstream: RCA Ebitda was €118 m, supported by the contribution from industrial activities, capturing the improved international refining environment, although partially offset by the natural gas trading activities performance, pressured by persisting natural gas sourcing restrictions and pricing differentials.

• Commercial: RCA Ebitda was €42 m, with oil products demand pressured by the high price environment, as well as higher development costs on transformational businesses and adjustments from past periods structural costs.

Group RCA Ebit was €475 m, a 14% increase YoY including a €108 m impairment related with retail distribution assets and a €60 m provision for the Matosinhos' site transformation project.

RCA net income was €273 m, also benefiting from positive financial results, namely markto-market swings, mostly related with Brent and refining margin hedges as well as the evolution from gas pricing differentials in Iberia. IFRS net income was €455 m, with an inventory effect of €-206 m and special items for €388 m.

Galp's adjusted operating cash flow (OCF¹ ) was €701 m following the improved RCA Ebitda, whilst cash flow from operations (CFFO) reached €1,107 m, including a €700 m working capital release driven by the decrease in commodities prices and the unwind of all gas derivatives margin account balances.

Net debt decreased €541 m during the quarter, after dividends paid to minorities of €-100 m and €-34 m related with the buyback programme concluded in the quarter.

Full year 2022

Galp's RCA Ebitda was €3,849 m, while OCF was €2,788 m.

Net capex totalled €1,266 m, mostly directed towards Upstream projects, namely for the execution of Bacalhau and Tupi & Iracema maintenance, and the expansion of the Renewables' portfolio, including Titan Solar's stake acquisition.

The OCF indicator represents a proxy of Galp's operational performance excluding inventory effects, working capital changes and special items.

FCF amounted to €1,681 m, with the strong cash generation driven by the operational performance under a supportive macro environment, as well as by the expected working capital release from the unwind of all gas derivatives margin account balances.

Net debt decreased €802 m compared to the end of last year, also considering dividends paid to shareholders of €420 m and the €150 m share repurchase programme executed throughout the year, as well as dividends to non-controlling interests of €245 m.

At the end of the period, net debt amounted to €1,555 m and net debt to RCA Ebitda was at 0.4x.

Subsequent events

Galp to divest from Angolan upstream assets

Galp has signed an agreement with SOMOIL - Sociedade Petrolífera Angolana S.A. for the sale of its upstream assets in Angola.

Proceeds are expected to reach c.\$830 m, already net of capital gain taxes, including c.\$655 m to be received until completion and \$175 m in contingent payments due in 2024 and 2025 dependent on Brent price.

The transaction is subject to customary terms and conditions, with completion expected during the second half of 2023.

Short Term Outlook

Galp is providing key operating and financial guidance for 2023, in accordance with its updated views and macro assumptions.

Assumptions for 2023
Brent	\$/bbl	c.85
Realised refining margin	\$/boe	c.9
Iberian PVB natural gas price	€/MWh	c.60
Iberia solar capture price	€/MWh	c.120
Average exchange rate	EUR:USD	1.12

Operational indicators (full year 2023)

Upstream
WI production	kboepd	>110
Upstream production costs	\$/boe	c.3
Renewables
Renewable generation capacity by YE (@100%)	GW	1.6
Industrial & Energy Management
Sines refining throughput	mboe	c.75
Sines refining cash costs	\$/boe	3-4
Commercial
Oil products sales to direct clients	mton	7.4
Convenience Ebitda growth YoY	%	10%
EV charging points	#	>5 k
Decentralised energy installations by YE	#	>25 k

Financial indicators

RCA Ebitda	€ bn	3.2
Upstream	€ bn	>2
Renewables & NB	€ m	>180
Industrial & Energy Management	€ m	>550
Commercial	€ m	c.300
OCF	€ bn	2.2
Upstream	€ bn	>1.1
Renewables & NB	€ m	>160
Industrial & Energy Management	€ m	>550
Commercial	€ m	c.230
Net capex (avg. 2023-25)	€ bn	c.1

Financial data

€m (RCA, except otherwise stated)

Quarter						Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
644	784	951	307		48% RCA Ebitda	2,322	3,849	1,527	66%
593	612	791	198		33% Upstream	2,020	3,083	1,062	53%
2	38	17	15	n.m.	Renewables & New Businesses	(13)	50	63	n.m.
5	48	118	114	n.m.	Industrial & Midstream	64	451	387	n.m.
59	103	42	(17)	(29%)	Commercial	288	298	10	4%
(14)	(17)	(17)	3		18% Others	(38)	(34)	(4)	(12%)
415	408	475	60		14% RCA Ebit	1,372	2,345	973	71%
456	420	602	145		32% Upstream	1,434	2,229	794	55%
1	32	5	4	n.m.	Renewables & New Businesses	(13)	32	45	n.m.
(55)	(86)	(15)	(39)	(72%)	Industrial & Midstream	(173)	66	239	n.m.
30	77	(104)	(134)	n.m.	Commercial	179	75	(104)	(58%)
(18)	(34)	(13)	(5)	(28%)	Others	(56)	(57)	1	1%
130	187	273	143		n.m. RCA Net income	457	881	424	93%
(89)	223	388	477	n.m.	Special items	(737)	560	1,297	n.m.
65	(103)	(206)	(271)	n.m.	Inventory effect	284	35	(250)	(88%)
106	307	455	349		n.m. IFRS Net income	4	1,475	1,471	n.m.
470	484	701	231		49% Adjusted operating cash flow (OCF)	1,852	2,788	935	50%
426	320	529	103		24% Upstream	1,527	2,022	496	32%
1	35	19	17	n.m.	Renewables & New Businesses	(4)	49	53	n.m.
12	57	116	104	n.m.	Industrial & Midstream	98	459	361	n.m.
47	88	56	10		20% Commercial	266	290	24	9%
(17)	(17)	(19)	2		13% Others	(35)	(33)	(2)	(5%)
61	1,024	1,107	1,047		n.m. Cash flow from operations (CFFO)	1,052	3,071	2,019	n.m.
(273)	(558)	(342)	69		25% Net Capex	(525)	(1,266)	741	n.m.
(236)	427	737	973		n.m. Free cash flow (FCF)	397	1,681	1,284	n.m.
(120)	(34)	(100)	(20)		(17%) Dividends paid to non-controlling interests	(198)	(245)	47	24%
-	(289)	(34)	(34)		n.m. Distributions to Galp shareholders	(498)	(570)	73	15%
-	(213)	-	-		n.m. Dividends paid to Galp shareholders	(498)	(420)	(78)	(16%)
-	(77)	(34)	(34)		n.m. Buybacks1	-	(150)	(150)	n.m.
2,357	2,096	1,555	(802)		(34%) Net debt	2,357	1,555	(802)	(34%)
1.1x	0.6x	0.4x	-0.7x		-61% Net debt to RCA Ebitda2	1.1x	0.4x	-0.7x	-61%

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

²Ratio considers the LTM Ebitda RCA (€3,631 m), which includes the adjustment for the impact from the application of IFRS 16 (€217 m).

Operating data

Quarter							Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
124.8	127.7	130.4	5.7		5% Working interest production (kboepd)	126.7	127.1	0.5	0%
123.0	126.1	128.6	5.6		5% Net entitlement production (kboepd)	124.9	125.5	0.6	0%
-	99.4	84.4	n.m.		n.m. Upstream oil realisations indicator (USD/bbl)	-	98.9	n.m.	n.m.
-	55.5	54.6	n.m.		n.m. Upstream gas realisations indicator (USD/boe)	-	52.7	n.m.	n.m.
213	693	307	93		44% Gross renewable power generation (GWh)	1,288	1,930	643	50%
197.5	126.1	100.9	(96.6)		(49%) Galp average solar generation sale price (EUR/MWh)	98.9	144.1	45.2	46%
13.6	22.9	20.5	6.9		51% Raw materials processed (mboe)	76.6	88.0	11.4	15%
5.5	7.7	13.5	8.0		n.m. Galp refining margin (USD/boe)	3.3	11.6	8.3	n.m.
3.7	4.3	3.8	0.1		2% Oil products supply1 (mton)	14.8	15.8	1.0	7%
14.3	13.1	12.7	(1.5)		(11%) NG/LNG supply & trading volumes1 (TWh)	67.2	54.6	(12.6)	(19%)
119	177	166	47		39% Sales of electricity from cogeneration (GWh)	980	630	(350.1)	(36%)
1.8	2.0	1.8	(0.0)		(1%) Oil Products - client sales (mton)	6.5	7.4	0.9	14%
4,509	4,180	4,270	(240)		(5%) Natural gas - client sales (GWh)	18,282	19,046	764	4%
1,121.5	979.4	940.5	(181.0)		(16%) Electricity - client sales (GWh)	4,178.2	4,147.5	(30.6)	(1%)

1 Includes volumes sold to the Commercial segment.

Market indicators

Quarter						Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
1.14	1.01	1.02	(0.12)		(11%) Exchange rate EUR:USD	1.18	1.05	(0.13)	(11%)
6.38	5.28	5.37	(1.01)		(16%) Exchange rate EUR:BRL	6.38	5.44	(0.94)	(15%)
79.8	100.8	88.9	9.1		11% Dated Brent price (USD/bbl)	70.9	101.3	30.4	43%
94.2	138.5	75.4	(18.8)		(20%) Iberian MIBGAS natural gas price (EUR/MWh)	47.9	99.9	52.0	n.m.
92.0	196.2	94.4	2.4		3% Dutch TTF natural gas price (EUR/MWh)	47.1	120.5	73.3	n.m.
104.9	152.3	100.1	(4.9)		(5%) Japan/Korea Marker LNG price (EUR/MWh)	53.9	108.2	54.3	n.m.
211.1	146.3	113.2	(97.8)		(46%) Iberian baseload pool price (EUR/MWh)	111.9	167.5	55.6	50%
202.2	129.4	102.2	(99.9)		(49%) Iberian solar captured price (EUR/MWh)	104.8	149.8	45.0	43%
15.7	16.4	15.6	(0.1)		(1%) Iberian oil market (mton)	57.2	62.7	5.5	10%
130.5	104.1	98.6	(31.9)		(24%) Iberian natural gas market (TWh)	442.3	426.2	(16.1)	(4%)

Source: Platts for commodities prices; MIBGAS for Iberian natural gas price; APETRO and CORES for Iberian oil market; REN and Enagás for Iberian natural gas market; OMIE and REE for Iberian pool price and solar captured price.

2. UPSTREAM

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

Quarter						Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
124.8	127.7	130.4	5.7		5% Working interest production1 (kboepd)	126.7	127.1	0.5	0%
111.2	114.8	115.3	4.1		4% Oil production (kbpd)	114.0	113.8	(0.2)	(0%)
13.6	12.9	15.1	1.5		11% Gas production (kboepd)	12.7	13.3	0.6	5%
123.0	126.1	128.6	5.6		5% Net entitlement production1 (kboepd)	124.9	125.5	0.6	0%
					By product
109.4	113.3	113.6	4.2	4%	Oil production (kbpd)	112.2	112.2	(0.0)	(0%)
13.6	12.9	15.0	1.4	10%	Gas production (kboepd)	12.7	13.3	0.6	4%
					By country
10.7	10.3	10.8	0.1	1%	Angola	11.1	10.4	(0.7)	(6%)
112.3	115.7	115.8	3.5	3%	Brazil	113.8	114.6	0.8	1%
-	0.1	1.9	1.9	n.m.	Mozambique	-	0.5	0.5	n.m.
					Realisations indicators2
-	99.4	84.4	n.m.	n.m.	Oil (USD/bbl)	-	98.9	n.m.	n.m.
-	55.5	54.6	n.m.	n.m.	Gas (USD/boe)	-	52.7	n.m.	n.m.
6.3	7.8	6.8	0.5		8% Royalties (USD/boe)	5.7	7.9	2.3	40%
1.4	3.2	3.0	1.6		n.m. Production costs (USD/boe)	1.6	2.8	1.2	75%
13.7	13.4	14.9	1.2		9% DD&A3 (USD/boe)	14.0	13.6	(0.5)	(3%)
593	612	791	198		33% RCA Ebitda	2,020	3,083	1,062	53%
(145)	(192)	(190)	45		31% Depreciation, Amortisation and Impairments3	(596)	(855)	259	44%
9	(0)	1	(8)		(92%) Provisions	10	1	(9)	(93%)
456	420	602	145		32% RCA Ebit	1,434	2,229	794	55%
457	420	602	145		32% IFRS Ebit	1,461	2,229	768	53%
426	320	529	103		24% Adjusted operating cash flow	1,527	2,022	496	32%
145	205	174	29		20% Capex	616	640	25	4%

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.

³Includes abandonment provisions. 2021 and 2022 unit figures exclude impairments of €48 m and €265 m, respectively, related with exploration and appraisal assets.

Fourth quarter 2022

Operations

WI production was 130.4 kboepd, up 5% YoY, reflecting an improved performance from Brazil, as well as the start-up of Coral Sul FLNG, in Mozambique. Natural gas accounted for 12% of WI production.

In Brazil, production increased YoY to 115.8 kboepd, considering reduced maintenance interventions and the ramp-up of Berbigão/Sururu and Sépia in Brazil.

In Mozambique, Coral Sul FLNG started to deliver LNG cargoes in November, contributing 1.9 kboepd in the quarter, and is currently in commissioning phase.

The Group's net entitlement (NE) production followed the WI production and was up 5% YoY at 128.6 kboepd.

Results

RCA Ebitda was €791 m, up 33% YoY, supported by the improved operational performance and benefiting from the favourable oil price environment. Still, oil realisations were pressured by weaker demand in Asia.

Production costs were €34 m, or \$3.0/boe on a net entitlement basis, up YoY reflecting the start-up of Coral Sul FLNG. IFRS 16 lease costs accounted for €46 m during the period.

Upstream hedging operations covered 1.6 mbbl of Galp's oil production in the period, resulting in a €-11 m impact in RCA Ebitda.

Amortisation and depreciation charges (including abandonment provisions) were €190 m. On a net entitlement basis, DD&A was \$14.9/boe.

RCA Ebit was €602 m, up €145 m YoY. IFRS Ebit amounted to €602 m.

Full year 2022

Operations

Average WI production during 2022 was 127.1 kboepd, whilst NE production stood at 125.5 kboepd, both flat YoY.

The natural production decline from more mature fields in Brazil and Angola was offset by the ramp-up of the units developing Berbigão/Sururu, Sépia and Atapu, together with the initial contribution from Coral Sul FLNG, in Mozambique.

Natural gas also accounted for 10% of the WI production.

Results

RCA Ebitda was €3,083 m, up 53% YoY, with the robust operational performance capturing increased oil realisations from the favourable macro conditions, as well as improved gas realisations also supported by new contracts firmed in Brazil.

OCF followed Ebitda and reached €2,022 m.

Production costs were €122 m, excluding IFRS 16 leases of €142 m. In unit terms, and on a net entitlement basis, production costs were \$2.8/boe.

Realised hedging operations covered 6.0 mbbl of Galp's oil production in the period, resulting in a €-114 m impact to RCA Ebitda.

Amortisation and depreciation charges (including abandonment provisions) amounted to €855 m, including impairments of €265 m related with exploration and appraisal assets in Brazil and São Tomé and Principe. On a net entitlement basis, and excluding the impairments, unit DD&A was \$13.6/boe.

RCA Ebit and IFRS Ebit both amounted to €2,229 m.

3. RENEWABLES & NEW BUSINESSES

€m (RCA, except otherwise stated)

Quarter						Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
					Renewable power generation (GWh)
213	693	307	93		44% Gross	1,288	1,930	643	50%
157	627	307	149		95% Net to Galp	958	1,629	671	70%
198	126	101	(96.6)		(49%) Galp average solar generation sale price (EUR/MWh)	99	144	45.2	46%
					Consolidated Indicators
2	38	17	15		n.m. RCA Ebitda	(13)	50	63	n.m.
1	32	5	4		n.m. RCA Ebit	(13)	32	45	n.m.
1	32	5	4		n.m. IFRS Ebit	(13)	32	45	n.m.
1	35	19	17		n.m. Adjusted operating cash flow	(4)	49	53	n.m.
27	265	47	20		73% Capex	142	402	260	n.m.
					Renewables pro-forma - equity to Galp1
28	68	19	(9)	(0.3)	Ebitda	75	180	104	n.m.
21	53	(2)	(23)	n.m.	Ebit	52	131	79	n.m.
28	68	8	(20)		(72%) Renewables pro-forma adjusted operating cash flow	75	168	93	n.m.

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

Fourth quarter 2022

Operations

Renewable installed capacity, on a 100% basis, increased to 1,363 MW by the end of the quarter, after the start-up of c.100 MW of new solar capacity in Iberia, from the Alco and Pitarco portfolio.

Renewable energy generation, on a 100% basis, amounted to 307 GWh, a 44% increase YoY, driven by the new capacity online and overall improvement on operational performance.

Results

Galp's average solar generation sale price was €101/MWh during the quarter, following the YoY decrease registered in the Iberian wholesale market prices.

Renewables & New Businesses RCA Ebitda was €17 m, with all renewables' projects in operation now consolidated into Galp's accounts. The temporary Spanish clawback mechanism had an impact of €2 m in Ebitda.

OCF was €19 m.

Full year 2022

Operations

Renewable energy generation, on a 100% basis, amounted to 1,930 GWh, a 50% increase YoY, reflecting the new capacity brought online and the overall improvement in operational performance.

Results

All renewable generation is exposed to merchant conditions. Galp's average solar generation sale price was €144/MWh, up YoY from €99/MWh, reflecting the increased Iberian wholesale market prices.

Renewables & New Businesses RCA Ebitda was €50 m, including 100% Titan solar portfolio consolidation from August onwards, G&A and corporate expenses.

Renewables pro-forma Ebitda was €180 m, up €104 m YoY, supported by higher power prices in Iberia and increased renewable power generation. 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 of €22 m in pro-forma Ebitda.

Pro-forma OCF was €168 m.

	In Operation	Under Construction	Under Development	Total
Galp Renewable capacity (GW)	1.4	0.2	7.4	9.0
Spain	1.2	0.2	2.0	3.5
Portugal	0.2	0.0	0.4	0.5
Brazil	0.0	0.0	5.0	5.0

4. INDUSTRIAL & MIDSTREAM

€m (RCA, except otherwise stated)

Quarter						Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
13.6	22.9	20.5	6.9		51% Raw materials processed (mboe)	76.6	88.0	11.4	15%
10.2	19.5	17.8	7.6		74% Crude processed (mbbl)	64.9	74.6	9.6	15%
5.5	7.7	13.5	8.0		n.m. Galp refining margin (USD/boe)	3.3	11.6	8.3	n.m.
3.8	2.0	3.1	(0.7)		(18%) Refining cost (USD/boe)	2.0	2.2	0.1	7%
3.7	4.3	3.8	0.1		2% Oil products supply1 (mton)	14.8	15.8	1.0	7%
14.3	13.1	12.7	(1.5)		(11%) NG/LNG supply & trading volumes1 (TWh)	67.2	54.6	(12.6)	(19%)
6.6	5.6	5.5	(1.1)	(17%)	Trading (TWh)	31.6	23.2	(8.4)	(27%)
119	177	166	47		39% Sales of electricity from cogeneration (GWh)	980	630	(350)	(36%)
5	48	118	114		n.m. RCA Ebitda	64	451	387	n.m.
(56)	(84)	(67)	10		19% Depreciation, Amortisation and Impairments	(235)	(266)	31	13%
(3)	(51)	(67)	64		n.m. Provisions	(3)	(119)	116	n.m.
(55)	(86)	(15)	(39)		(72%) RCA Ebit	(173)	66	239	n.m.
(17)	(207)	(310)	293		n.m. IFRS Ebit	93	86	(7)	(7%)
12	57	116	104		n.m. Adjusted operating cash flow	98	459	361	n.m.
34	20	29	(5)		(16%) Capex	67	72	5	8%

1 Includes volumes sold to the Commercial segment.

Fourth quarter 2022

Energy Management was renamed Midstream, which includes all trading businesses.

Operations

Raw materials processed in the quarter of 20.5 mboe, 51% higher YoY, as last year's performance reflected a planned maintenance activity and unplanned events in the atmospheric distillation unit.

Total supply of oil products slightly increased 2% YoY to 3.8 mton, following the increased availability of the refinery.

Supply & trading volumes of NG/LNG decreased 11% YoY to 12.7 TWh, impacted by natural gas sourcing restrictions.

Results

RCA Ebitda was €118 m, supported by the contribution from industrial activities, capturing the improved international refining environment, although partially offset by the natural gas trading activities performance, pressured by persisting natural gas sourcing restrictions and pricing differentials. OCF was €116 m.

Refining margin was up YoY, from \$5.5/boe to \$13.5/boe, driven by the more supportive international refining environment and despite the increased costs of energy and CO² emissions licenses.

Planned maintenance activities in the quarter increased refining costs to €62 m, or \$3.1/boe in unit terms. Realised refining margin hedging operations had a €-81 m impact to RCA Ebitda, covering 5.6 mboe during the period, given the significant basis differential between Galp's refining margin and the indicator hedged.

Midstream was impacted by a negative contribution from the natural gas supply and trading activities, given persistent sourcing restrictions, namely from Nigeria, Galp's main long term LNG supplier, as well as natural gas pricing differentials (Mibgas vs. TTF) in Iberia.

RCA Ebit was €-15 m, including a provision of €60 m related with the Matosinhos' site transformation project. IFRS Ebit was €-310 m, with an inventory effect of €295 m.

Full year 2022

Operations

Raw materials processed were 88.0 mboe during the year, 15% higher YoY, reflecting the near full availability of the refining system during the year.

Crude oil accounted for 83% of raw materials processed, of which 84% corresponded to medium and heavy crudes. The majority of the 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 15.8 mton, driven by increased market demand in Iberia and improved availability of the refining system.

Supply & trading volumes of NG/LNG were 54.6 TWh, down 19% YoY, limited by natural gas sourcing restrictions and the international context of high prices.

Results

RCA Ebitda for Industrial & Midstream was €451 m, following the higher contribution from the refining activities. OCF was €459 m.

Galp's refining margin was up YoY, to \$11.6/boe, following the stronger international refining environment and despite the increased costs of energy and CO2 emissions licenses. Following the significant widening of natural gas prices in Iberia, and to better reflect the market conditions associated with this energy cost, from 2022 onwards, Galp's natural gas purchases for its refining operations started to be priced at spot conditions. All margin indicators related with 2022 were adjusted accordingly. Electricity and CO2 purchasing costs were already valued according to merchant conditions.

Refining unit cash costs slightly increased YoY from \$2.0/boe to \$2.2/boe.

Midstream contribution was negative, impacted by the persistent gas sourcing restriction throughout the year, European to Iberian gas price differentials, as well as a negative lag in pricing formulas for oil products' supply, namely in the first half of the year.

RCA Ebit was €66 m and IFRS Ebit was €86 m.

5. COMMERCIAL

€m (RCA, except otherwise stated)

Quarter							Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
					Commercial sales to clients
1.8	2.0	1.8	(0.0)	(1%)	Oil products (mton)	6.5	7.4	0.9	14%
4,509	4,180	4,270	(240)	(5%)	Natural Gas (GWh)	18,282	19,046	764	4%
1,121	979	940	(181)	(16%)	Electricity (GWh)	4,178	4,148	(30.6)	(1%)
59	103	42	(17)		(29%) RCA Ebitda	288	298	10	4%
(27)	(26)	(139)	112	n.m.	Depreciation, Amortisation and Impairments	(106)	(217)	110	n.m.
(2)	-	(7)	5	n.m.	Provisions	(2)	(7)	4	n.m.
30	77	(104)	(134)		n.m. RCA Ebit	179	75	(104)	(58%)
29	70	(103)	(132)		n.m. IFRS Ebit	185	91	(94)	(51%)
47	88	56	10		20% Adjusted operating cash flow	266	290	24	9%
45	23	66	21		48% Capex	92	113	21	23%

Fourth quarter 2022

Operations

Oil products' sales slightly declined YoY to 1.8 mton, halting the post pandemic recovery trend with demand pressured by the high price environment.

Natural gas and electricity sales impacted by activity reduction, especially in the B2B segment, as well as lower consumption in the B2C segment given the warmer temperatures.

Results

RCA Ebitda was €42 m, with oil products demand pressured by the high price environment, as well as higher development costs on transformational businesses (e.g. decentralised energy and e-mobility) and adjustments from past periods structural costs. OCF was €59 m, up from €47 m YoY.

RCA Ebit was €-104 m, also considering a €108 m impairment related with the retail distribution assets. IFRS Ebit stood at €-103 m.

Full year 2022

Operations

Total oil products' sales were 7.4 mton, up 14% YoY, reflecting higher demand of oil products, both on B2B and B2C, driven by a post-pandemic gradual recovery.

Natural gas sales amounted to 19.0 TWh, up 4% YoY, supported by a strong contribution from the B2B segment in Spain.

Electricity sales were slightly down YoY, following a weaker contribution from both B2B and B2C, in Portugal.

At the end of the year, a total of 2,382 charging points were operating in Portugal and Spain, doubling the tally at the end of 2021.

Galp Solar, the decentralised energy subsidiary, reached 10.7 k installations by the end of the year, an addition of 7.7 k installations compared to the end of 2021.

Results

RCA Ebitda increased 4% YoY to €298 m, supported by the recovery in oil volumes sold during the period and despite the pressure from the high price environment, reflected in lower than expected demand towards the end of the year. OCF was €290 m, up 9% YoY.

Convenience contribution margin increased 27% YoY, to €72 m.

RCA Ebit was €75 m, also considering the retail impairment registered in the fourth quarter. IFRS Ebit was €91 m.

6. FINANCIAL DATA

6.1 Income Statement

€m (RCA, except otherwise stated)

Quarter							Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
4,779	7,761	6,188	1,409		29% Turnover	16,117	26,840	10,722	67%
(3,769)	(6,349)	(4,691)	922		24% Cost of goods sold	(12,129)	(20,956)	8,827	73%
(448)	(484)	(497)	50		11% Supply & Services	(1,536)	(1,888)	352	23%
(81)	(91)	(122)	42		52% Personnel costs	(297)	(370)	73	24%
164	(51)	74	(90)		(55%) Other operating revenues (expenses)	173	232	59	34%
(2)	(2)	(0)	(2)		(89%) Impairments on accounts receivable	(7)	(9)	2	32%
644	784	951	307		48% RCA Ebitda	2,322	3,849	1,527	66%
755	630	657	(98)		(13%) IFRS Ebitda	2,698	3,885	1,187	44%
(233)	(325)	(404)	170		73% Depreciation, Amortisation and Impairments	(954)	(1,380)	426	45%
4	(51)	(72)	(77)		n.m. Provisions	3	(124)	(127)	n.m.
415	408	475	60		14% RCA Ebit	1,372	2,345	973	71%
452	281	181	(271)		(60%) IFRS Ebit	1,670	2,381	711	43%
27	25	54	26		96% Net income from associates	96	166	71	74%
(50)	89	134	184		n.m. Financial results	(138)	(154)	16	12%
(7)	(2)	(1)	(6)	(81%)	Net interests	(31)	(16)	(14)	(46%)
4	10	12	7	n.m.	Capitalised interest	15	30	15	n.m.
(18)	(8)	15	34	n.m.	Exchange gain (loss)	(29)	10	39	n.m.
-	114	136	136	n.m.	Mark-to-market of derivatives	-	(80)	(80)	n.m.
(20)	(21)	(25)	5		22% Interest on leases (IFRS 16)	(76)	(85)	9	12%
(8)	(4)	(3)	(5)	(63%)	Other financial costs/income	(17)	(13)	(4)	(24%)
392	523	663	270		69% RCA Net income before taxes and minority interests	1,329	2,358	1,028	77%
(212)	(315)	(313)	102		48% Taxes	(729)	(1,254)	524	72%
(160)	(265)	(158)	(2)	(1%)	Taxes on oil and natural gas production1	(560)	(843)	283	51%
(50)	(20)	(76)	26		51% Non-controlling interests	(143)	(223)	80	56%
130	187	273	143		n.m. RCA Net income	457	881	424	93%
(89)	223	388	477		n.m. Special items	(737)	560	1,297	n.m.
41	410	661	620		n.m. RC Net income	(280)	1,440	1,721	n.m.
65	(103)	(206)	(271)		n.m. Inventory effect	284	35	(250)	(88%)
106	307	455	349		n.m. IFRS Net income	4	1,475	1,471	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.

Fourth quarter 2022

RCA Ebitda increased €307 m YoY to €951 m, with Upstream and Industrial activities capturing the supportive macro environment. IFRS Ebitda amounted to €666 m, considering an inventory effect of €285 m.

Group RCA Ebit was €475 m, a 14% increase YoY including a €108 m impairment related the retail distribution assets and a €60 m provision for the Matosinhos' site transformation project. IFRS Ebit was €181 m.

Income from associated companies was €54 m, benefiting from the start-up of Coral FLNG, in Mozambique.

Financial results were €134 m, supported by €136 m in positive mark-to-market swings, mostly related with Brent and refining margin hedges, as well as the evolution from gas pricing differentials in Iberia.

RCA taxes increased YoY, from €212 m to €313 m, following the increased operational results, namely on the Upstream and Industrial & Midstream segment.

Non-controlling interests of €-76 m, mostly attributed to Sinopec's stake in Petrogal Brasil.

RCA net income was €273 m. IFRS net income was €455 m, with an inventory effect of €-206 m and special items of €388 m. Special items mainly reflected the positive mark-tomarket swings related with derivatives to cover client positions in the natural gas trading activities, and includes a €-53 m provision related with windfall taxes in Portugal and Spain.

Full year 2022

RCA Ebitda of €3,849 m was 66% higher YoY, driven by the strong operational performance, supported by the improved market conditions during the period.

Following RCA Ebitda, the RCA Ebit was €2,349 m, up YoY from €1,372 m, although also including impairments of €265 m and €104 m in Upstream and Commercial, respectively, and the provisions related with the transformation of the Matosinhos site.

Financial results were €-154 m, considering net interests and interests on leases (IFRS 16), as well as mark-to-market swings mostly related with the fair value accounting of commodity derivatives in the Upstream and Refining segments.

RCA taxes increased YoY from €729 m to €1,254 m, following the increased operational results.

Non-controlling interests of €-223 m are related with Sinopec's stake in Petrogal Brasil.

RCA net income was €881 m.

6.2 Capital Expenditure

€m
Quarter						Twelve Months
4Q21	3Q22	4Q22	Var. YoY	% Var. YoY		2021	2022	Var. YoY	% Var. YoY
145	205	174	29		20% Upstream	616	640	25	4%
24	265	47	22		92% Renewables & New Businesses	142	402	260	n.m.
34	20	29	(5)		(16%) Industrial & Midstream	67	72	5	8%
45	23	66	21		48% Commercial	92	113	21	23%
8	11	13	6		73% Others	20	39	19	94%
256	524	329	73		28% Capex (economic)1	936	1,265	330	35%

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

Fourth quarter 2022

Capex totalled €329 m during the quarter.

Investments in the Upstream were mostly directed to projects under execution and development in the Brazilian pre-salt, namely Bacalhau and BM-S-11, as well as Coral South FLNG, in Mozambique.

Commercial capex was mostly allocated to the transformation of the retail business, both in Portugal and Spain. Industrial & Midstream capex was mosly directed to the refinery compliance and maintenance activities that occurred during the period.

Investments within the Renewables & New Businesses segment were mostly deployed towards the continued execution of the solar portfolio, now at 100%.

Full year 2022

Capex totalled €1,265 m, with Upstream accounting for 50% of total investments, whilst the downstream activities represented 15% and Renewables & New Businesses 32%.

Upstream investments were mainly directed to Brazil, namely the execution of Bacalhau and maintenance in BM-S-11 projects, and Mozambique.

Commercial investments were allocated to business transformation whilst Industrial & Midstream investments were directed to refining activities.

Investments within the Renewables & New Businesses segment supported the continued execution of the solar projects and include the Titan Solar stake acquisition in 3Q22.

6.3 Cash Flow

(IFRS figures) €m
	Quarter			Twelve	Months
4Q21	3Q22	4Q22		2021	2022
644	784	951	Ebitda RCA	2,322	3,849
8	3	13	Dividends from associates	132	26
(182)	(303)	(264)	paid Taxes	(602)	(1,087)
470	484	701	Adjusted operating cash flow	1,852	2,788
19	5	-	Special items	(11)	-
92	(159)	(294)	effect Inventory	387	36
(520)	693	700	Changes working capital in	(1,176)	247
(161)	306	401	o.w. gas derivatives hedges	(605)	682
61	1,024	1,107	flow from Cash operations	1,052	3,071
(273)	(558)	(342)	capex1 Net	(525)	(1,266)
(4)	(18)	(3)	financial Net expenses	(54)	(39)
(20)	(21)	(25)	IFRS 16 leases interest	(76)	(85)
(236)	427	737	flow Free cash	397	1,681
(120)	(34)	(100)	interest2 Dividends paid non-controlling to	(198)	(245)
-	(213)	-	Dividends paid Galp shareholders to	(498)	(420)
-	(77)	(34)	Buybacks3	-	(150)
(31)	(30)	(41)	Reimbursement of IFRS 16 leases principal	(115)	(132)
57	15	(21)	Others	122	69
330	(89)	(541)	Change in debt net	292	(802)

¹2021 includes the proceeds from the GGND stake sale of €368 m and 2022 includes Titan Solar stake acquisition of €140 m.

² Mainly dividends paid to Sinopec.

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

Fourth quarter 2022

Galp's adjusted operating cash flow (OCF) was €701 m, following the improved RCA Ebitda, whilst cash flow from operations (CFFO) reached €1,107 m, including a €692 m working capital release driven by the decrease in commodities prices and the unwind of all gas derivatives margin account balances.

FCF was positive at €737 m. Net debt decreased €541 m during the quarter, after dividends paid to minorities of €-100m and €-34 m related with the buyback programme concluded in the quarter.

Full year 2022

Galp's OCF was €2,788 m, with the strong cash generation driven by the operational performance under a supportive macro environment. CFFO amounted to €3,071 m, including the expected working capital release from the the unwind of all gas derivatives margin account balances.

FCF amounted to €1,681 m. Net debt decreased €802 m compared to the end of last year, also considering dividends paid to shareholders of €420 m and the €150 m share repurchase programme executed throughout the year, as well as dividends to noncontrolling interests of €245 m.

6.4 Condensed Financial Position

€m (IFRS figures)

	31 Dec. 2021	30 Sep. 2022	31 Dec. 2022	Var. vs 31 Dec. 2021	Var. vs 30 Sep. 2022
Net fixed assets	6,667	7,780	6,876	210	(904)
Rights of use (IFRS 16)	1,079	1,119	1,116	37	(3)
Working capital	1,879	2,333	1,632	(247)	(700)
Other assets/liabilities	(2,119)	(2,627)	(2,089)	30	537
Assets held for sale	-	-	413	413	413
Capital employed	7,506	8,605	7,948	443	(657)
Short term debt	1,305	1,517	800	(505)	(717)
Medium-Long term debt	2,995	2,992	3,187	193	195
Total debt	4,300	4,509	3,987	(313)	(522)
Cash and equivalents	1,942	2,413	2,432	490	19
Net debt	2,357	2,096	1,555	(802)	(541)
Leases (IFRS 16)	1,179	1,248	1,277	98	29
Equity	3,970	5,262	5,117	1,147	(145)
Equity, net debt and leases	7,506	8,606	7,948	443	(657)

On December 31, 2022, net fixed assets were €6,876 m, including work-in-progress of c.€2.0 bn, mostly related to the Upstream business. This represents a €904 m reduction against end of September, reflecting the reclassification of Angolan upstream as available for sale, as well as the impact from the USD depreciation against the Euro by year end.

Other assets / liabilities decreased €537 m compared to end of September, mostly reflecting impacts from the mark-to-market of derivatives. Equity was up €1,147 m YoY, supported by the IFRS net income in the period, although partially offset by distributions to shareholders and dividends to minorities.

6.5 Financial Debt

€m (except otherwise stated)

	31 Dec. 2021	30 Sep. 2022	31 Dec. 2022	Var. vs 31 Dec. 2021	Var. vs 30 Sep. 2022
Cash and equivalents	1,942	2,413	2,454	512	41
Undrawn credit facilities	816	837	1,484	669	648
Bonds	2,421	2,577	2,467	46	(111)
Bank loans and other debt	1,879	1,932	1,542	(337)	(390)
Net debt	2,357	2,096	1,555	(802)	(541)
Leases (IFRS 16)	1,179	1,248	1,277	98	29
Net debt to RCA Ebitda 1	1.1x	0.6x	0.4x	-0.7x	-0.2x

¹Ratio considers the LTM Ebitda RCA (€3,631 m), which includes the adjustment for the impact from the application of IFRS 16 (€217 m).

On December 31, 2022, net debt was €1,555 m, down €802 m from year-end 2021. Net debt to RCA Ebitda stands at 0.4x.

Following Titan Solar's stake acquisition during the quarter, Galp started to fully consolidate the Renewables business. At the end of December, the gross debt associated to Renewables was €668 m.

At the end of the period, cash and equivalents reached €2.5 bn, whilst unused credit lines were €1.5 bn, of which c.80% were contractually guaranteed. The average cost of funding for the period, including charges for credit lines, was 1.68%.

Debt maturity profile (€ m)

6.6 Share Repurchase Programme

	Programme Amount	Start Date	Duration	Status	Amount Spent	Total Shares Bought
2022 Fiscal Year1	€150 m	12/05/2022	132 days	Completed	€150 m	14,139,087

¹ All figures as of 31 st of December 2022.

Buyback Programmes

Related to the 2021 fiscal year, a €150 m share repurchase programme was executed, which started in May 2022.

In November 11, Galp concluded this share repurchase programme. Pursuant to the conclusion of the programme, Galp's Board of Directors approved the reduction of the Company's share capital through the extinction of 14,139,087 own-shares, representative of approximately 1.71% of its initial share capital.

6.7 Reconciliation of IFRS and RCA figures

Ebitda by segment

€m

Fourth Quarter					2022	Twelve Months
Ebitda IFRS	Inventory effect	RC Ebitda	Special items	RCA Ebitda		Ebitda IFRS	Inventory effect	RC Ebitda	Special items	RCA Ebitda
657	294	951	-	951	Galp	3,885	(36)	3,849	-	3,849
791	-	791	-	791	Upstream	3,083	-	3,083	-	3,083
	17 -	17	-	17	Renewables & New Businesses	50	-	50	-	50
	(176) 295	118	-	118	Industrial & Midstream	471	(20)	451	-	451
43	(1)	42	-	42	Commercial	314	(16)	298	-	298
(17)	-	(17)	-	(17)	Others	(34)	(0)	(34)	-	(34)

Ebit by segment

€m

Fourth Quarter					Twelve Months 2022
Ebit IFRS	Inventory effect	RC Ebit	Special items	RCA Ebit		Ebit IFRS	Inventory effect	RC Ebit	Special items	RCA Ebit
181	294	475	-	475	Galp	2,381	(36)	2,345	-	2,345
602	-	602	-	602	Upstream	2,229	-	2,229	-	2,229
5	-	5	-	5	Renewables & New Businesses	32	-	32	-	32
(310)	295	(15)	-	(15)	Industrial & Midstream	86	(20)	66	-	66
(103)	(1)	(104)	-	(104)	Commercial	91	(16)	75	-	75
(13)	-	(13)	-	(13)	Others	(57)	(0)	(57)	-	(57)

6.8 Special Items

€m
	Quarter			Twelve Months
4Q21	3Q22	4Q22		2021	2022
(19)	(5)	-	Items impacting Ebitda	1 1	-
(0)	-	-	Termination agreement for service and equipment (P-71)	(27)	-
(19)	(5)	-	Matosinhos Refinery	38	-
7 4	(26)	-	Items impacting non-cash costs	7 8	-
71	0	-	Provisions for environmental charges and others (Matosinhos Refinery)	71	-
4	(26)	-	Matosinhos Refinery	7	-
4 4	(304)		(615) Items impacting financial results	785	(852)
1	-	7	Gains/losses on financial investments (GGND)	12	15
(0)	(0)	-	Financial costs - Others	0	-
46	(337)	(654)	Mark-to-Market of derivatives	832	(885)
(3)	33	32	FX differences from natural gas derivatives	(60)	19
(8)	117	216	Items impacting taxes	(140)	265
(24)	98	195	Taxes on special items	(179)	274
8	12	(38)	BRL/USD FX impact on deferred taxes in Brazil	8	(91)
-	-	53	Windfall Taxes in Portugal and Spain	-	53
8	6	6	Energy sector contribution taxes	31	30
(2)	(4)	11	Non-controlling interests (FX on deferred taxes Brazil)	3	27
8 9	(223)		(388) Total special items	737	(560)

6.9 IFRS Consolidated Income Statement

€m	Quarter			Twelve Months
4Q21	3Q22	4Q22		2021	2022
4,641	7,678	6,107	Sales	15,618	26,485
138	83	81	Services rendered	499	355
170	(27)	70	Other operating income	324	321
4,949	7,734	6,258	Operating income	16,442	27,160
(3,657)	(6,512)	(4,985)	Inventories consumed and sold	(11,752)	(20,920)
(456)	(477)	(497)	Materials and services consumed	(1,563)	(1,888)
(75)	(88)	(122)	Personnel costs	(310)	(370)
(2)	(2)	(0)	Impairments on accounts receivable	(7)	(9)
(5)	(24)	4	Other operating costs	(111)	(88)
(4,194)	(7,104)		(5,601) Operating costs	(13,744)	(23,275)
755	630	657	Ebitda	2,698	3,885
(237)	(299)		(404) Depreciation, Amortisation and Impairments	(961)	(1,380)
(66)	(51)		(72) Provisions	(67)	(124)
452	281	181	Ebit	1,670	2,381
27	25	46	Net income from associates	83	152
(93)	393	757	Financial results	(911)	713
5	15	21	Interest income	18	53
(13)	(16)	(22)	Interest expenses	(49)	(70)
4	10	12	Capitalised interest	15	30
(20)	(21)	(25)	Interest on leases (IFRS 16)	(76)	(85)
(15)	(41)	(16)	Exchange gain (loss)	31	(9)
(46)	451	791	Mark-to-market of derivatives	(832)	806
(8)	(4)	(3)	Other financial costs/income	(18)	(13)
385	699	984	Income before taxes	843	3,246
(223)	(370)		(383) Taxes1	(652)	(1,434)
-	-		(53) Windfall Taxes	-	(53)
(8)	(6)		sector contribution taxes2 (6) Energy	(41)	(34)
154	324	542	Income before non-controlling interests	150	1,726
(48)	(16)		(87) Income attributable to non-controlling interests	(146)	(251)
106	307	455	Net income	4	1,475

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

2 Includes €12 m, €19 m and €4 m related to CESE I, CESE II and FNEE, respectively, during 2022.

6.10 Consolidated Financial Position

		31 Dec. 2021	30 Sep. 2022	31 Dec. 2022
Assets
Tangible fixed assets		5,169	6,563	5,700
Goodwill		85	92	70
Other intangible fixed assets		645	655	672
Rights of use (IFRS 16)		1,079	1,119	1,116
Investments in associates		389	437	417
Receivables		294	281	263
Deferred tax assets		485	554	559
Financial investments		559	500	256
	Total non-current assets	8,703	10,201	9,055
Inventories1		1,007	1,805	1,361
Trade receivables		1,243	1,786	1,464
Other receivables		885	1,051	1,003
Financial investments		992	1,039	339
Current Income tax recoverable		139	1	3
Cash and equivalents		1,942	2,413	2,432
Non-current assets held for sale		-	-	500
	Total current assets	6,208	8,096	7,102
	Total assets	14,912	18,297	16,157

1 Includes €84 m of stocks made on behalf of third parties as of 31 December 2022.

4 th QUARTER AND FULL YEAR 2022 FEBRUARY 2023

€m

	31 Dec. 2021	30 Sep. 2022	31 Dec. 2022
Equity
Share capital	829	829	815
Buybacks	-	(116)	-
Share premium	82	82	82
Reserves	1,327	2,118	1,562
Retained earnings	810	253	226
Net income	4	1,020	1,475
Total equity attributable to equity holders of the parent	3,052	4,186	4,161
Non-controlling interests	918	1,075	956
Total equity	3,970	5,262	5,117
Liabilities
Bank loans and overdrafts	824	1,164	1,470
Bonds	2,171	1,827	1,717
Leases (IFRS 16)	1,015	1,077	1,095
Other payables	95	109	99
Retirement and other benefit obligations	300	276	252
Deferred tax liabilities	653	632	555
Other financial instruments	136	335	48
Provisions	1,209	1,425	1,430
Total non-current liabilities	6,403	6,845	6,666
Bank loans and overdrafts	1,055	767	50
Bonds	250	750	750
Leases (IFRS 16)	164	171	182
Trade payables	811	1,226	1,005
Other payables	1,190	1,739	1,566
Other financial instruments	1,069	1,326	373
Income tax payable	-	211	361
Liabilities related to non-current assets held for sale	-	-	87
Total current liabilities	4,539	6,191	4,375
Total liabilities	10,942	13,035	11,040
Total equity and liabilities	14,912	18,297	16,157

BASIS OF REPORTING

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 September 30 and December 31, 2022, and 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 derivatives to cover client positions, which have no direct translation into operating results, are registered as special items.

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.

8. 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 & Midstream IAS: International Accounting Standards IRC: Income tax IFRS: International Financial Reporting Standards IRP: Oil income tax (Oil tax payable in Angola) ISP: Payments relating to tax on oil products kboepd: thousands of barrels of oil equivalent per day kbpd: thousands of barrels of oil per day LNG: liquefied natural gas LTM: last twelve months m: million MIBGAS: Iberian Market of Natural Gas mbbl: million barrels of oil

mboe: million barrels of oil equivalent mbtu: million British thermal units mm³: million cubic metres MTM : Mark -to -Market mton: million tonnes MW: Megawatt MWh: Megawatt -hour NE: Net entitlement NG: natural gas n.m.: not meaningful NWE: Northwestern Europe OCF: Adjusted Operating Cash Flow 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