Record. Galp profits reach one billion euros in 2023

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The oil company once again achieved record profits for the second year in a row. The company proposes a 4% increase in the dividend to 54 cents per share and plans a 350 million share buyback program.

Galp’s profits (adjusted for non-recurring effects and the impact of stock replacement costs) rose 14% to one billion euros in 2023 compared to the same period last year, with the company recording its highest net result ever.

This is the second consecutive year of historic profits, after reaching 881 million euros in 2022 (+93% compared to the previous result).

Even so, the company’s EBITDA fell 8% to 3,558 million euros, penalized by the upstream operation, which fell 27% to 2,263 million euros.

The renewable segment rose from 50 million to 131 million; with the ‘industrial and midstream’ segment increasing in value from 451 million to 929 million; and the commercial segment rising 2% to 303 million euros.

Operating cash flow fell 19% to 2,269 million euros “reflecting a robust operational performance in all business units”, with free cash flow reaching 1,373 million euros, covering the payment of dividends to shareholders (422 million ), the share buyback program (500 million) and the dividends from non-controlling interests (169 million).

The oil company plans a 4% increase in dividend payments to 54 cents, and intends to move forward this year with a share buyback program worth 350 million euros.

The company’s net capex reached 859 million euros, including 209 million euros in initial procedures related to the sale of oil assets in Angola, which the company expects to conclude in the first half of 2024.

In turn, economic capex reached 1,052 million euros, mainly aimed at upstream growth, downstream transformation and the construction of renewable capacity.

The energy company highlights that a third of its expenses take place in Portugal, in particular the projects at the Sines refinery that aim to build 100 MW electrolysers for the production of green hydrogen, the construction of a biofuels unit, the growth in electric mobility and modernization of the fuel sales network.

In turn, net debt was reduced to 1.4 billion euros “strengthening Galp’s financial position while executing an ambitious growth and investment plan”.

“In 2023, Galp achieved a robust series of results driven by strong operational performance in all business segments. These results support our investments in world-class sustainable growth”, said the company’s executive president in a statement.

“Galp has begun building one of the largest European green hydrogen electrolyzer projects and a biofuels unit in Sines, two essential steps to integrate low-carbon energy and transform our commercial and industrial operations. At the same time, we made progress in the development of upstream projects in Brazil and in high potential assets in Namibia”, according to Filipe Silva.

The company says it is committed to “executing a responsible and focused strategy, fulfilling growth opportunities to ensure the value creation required for a credible decarbonization path, without compromising our profitability and competitiveness while ensuring a strong financial position”.