Galp Energia SGPS (GALP) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered robust results, with strong Iberian mid- and downstream performance offsetting weaker upstream due to planned maintenance and over 40% of annual stoppage days already completed.

• Upstream production reached 104,000 barrels, impacted by maintenance, but portfolio management remained disciplined, including the Mozambique Area 4 divestment and Angola earnout, generating $870 million in cash.

• The executive structure was reconfirmed, with a co-CEO model focused on stability, execution, and long-term value creation.

• Successful Mozambique Area 4 divestment reinforced the financial position and enabled continued transformation projects, including progress in Namibia.

Financial highlights

• RCA Ebitda at €669m, down 29% year-over-year; RCA Net Income at €192m, down 41% year-over-year; IFRS Net Income at €362m, down 3% year-over-year.

• Adjusted operating cash flow at €266m, down 52% year-over-year; CFFO at €-271m due to working capital build and inventory increases.

• Net CapEx guidance for 2025 was revised down by 20% from the previous period, with further optimization possible.

• Working capital was temporarily impacted by extreme weather in Portugal, affecting inventories, but over 60% of this is expected to reverse as operations normalize.

• Net capex resulted in an inflow of €487m, mainly from €870m Mozambique Area 4 divestment proceeds.

Outlook and guidance

• Maintains 2025-26 macroeconomic, financial, and operational guidance.

• Upstream production guidance unchanged at ≥105 kboepd; over 40% of annual maintenance completed in Q1.

• Bacalhau project in Brazil targets first oil later in 2025, with plateau expected in 2027 and $400 million annual OCF at plateau.

• Refining margin guidance remains at ~$6/bbl for 2025–2026, despite recent volatility and Q1 margins below plan.

• Biofuels SAF/HVO plant startup is confirmed for late 2026.