Galp Energia SGPS (GALP) Q3 2024 earnings summary

Executive summary

• Delivered robust Q3 2024 results with strong operational momentum and disciplined investments, maintaining a solid balance sheet despite less favorable refining and commodity prices.

• Upstream growth advanced with Bacalhau FPSO sail away scheduled and Namibia appraisal drilling underway; key projects in Brazil and Namibia progressing.

• Integration and convenience initiatives supported value chain performance, with non-fuel (convenience) EBITDA contribution rising to 35% of nine-month total.

• Leadership transition in investor relations and renewables division, with Otelo Ruivo moving to CFO of renewables and João Pereira taking over IR.

Financial highlights

• RCA EBITDA for 3Q24 was €820m; nine-month RCA EBITDA reached €2,609m; 3Q24 RCA net income was €266m, nine-month net income €890m, up 24% YoY.

• 3Q24 turnover was €5,610m, up 4% YoY; nine-month turnover €16,405m, up 5% YoY.

• Net debt to EBITDA at 0.48x as of September 2024, reflecting a strong balance sheet.

• Free cash flow for nine months was €1,032m; net capex for the period was €290m.

• Bacalhau project CapEx declining from €300–350M/year (2022–2024) to ~€150M/year as it nears startup in mid-2025.

Outlook and guidance

• Confident in beating full-year 2024 guidance, with Group EBITDA and OCF expected to exceed €3.1bn and €2.0bn, respectively; guidance to be revised after Mozambique divestment closure, expected early 2025.

• FY24 guidance: RCA EBITDA > €3.1bn, OCF > €2.0bn, net capex < €1.0bn.

• CapEx for 2024–2025 expected below €1B/year guidance, with Mozambique divestment impacting future numbers.

• No date set for new forward-looking guidance; update expected after significant developments are finalized.