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“Right now, there is enormous uncertainty regarding the future of exploration, cash flows [fluxos de caixa] futures and how much of their share they can sell to other companies. However, in either case, this will be a clear added value for Galp”, pointed out Henrique Tomé, analyst at xtb, in a written response to Lusa.
The analyst considered that if the company chooses to explore that reserve in Namibia, it will have a very large increase in future cash flow, given that this reserve has enormous potential.
On the other hand, if the company chooses to sell part or all of the project, which it owns at 80%, it can raise a large amount of capital in the short term, which it can use in other projects or distribute to its shareholders. This is one of the possibilities that has been publicized in international media.
The operational administrator of ActivTrades Brasil, Mário Martins, also highlighted that “when an effective discovery occurs, the company makes a substantial part of its investment profitable, even if only in a potential way”.
If the company puts part or all of the project up for sale, this “will make it possible to realize a portion of this profitability, in addition to reducing risk”, explained the analyst.
“In the same way, the confirmation of these reserves provides raw material for several more years of the company’s operation, thus creating additional expectations of future profits”, added Mário Martins.
On Sunday, Galp informed investors that the oil reserve in Namibia, in the first testing phase of the Mopane campaign, has the potential to be an “important commercial discovery”.
In a statement sent to the Securities Market Commission (CMVM), the company explains that “in the Mopane complex alone and before drilling additional exploration and evaluation wells, hydrocarbon estimates at the site are 10 billion barrels of oil equivalent, or more”.
The Lisbon stock exchange closed today on a high, with the PSI index registering a rise of 3.50% to 6,515.47 points, the biggest increase since November 2020, supported by Galp, whose shares advanced 20.64% to 19, 35 euros.
