Galp Reports Increase in Profits and EBITDA in First Half of 2022, Driven by Rising Oil Prices and Refining

The Strong Growth in Oil Barrel Prices and the Increase in Fuel Refining Were the Main Factors That Led to the Increase in Galp’s Adjusted Profits and Adjusted EBITDA During the First Half of This Year.

On last Monday, (07/25), the oil and natural gas company Galp announced an increase in its adjusted profit to €420 million during the first half of 2022. In addition, the company also reported an increase in adjusted EBITDA, due to rising oil prices and growth in fuel refining operations by the oil company.

Adjusted Profits and Adjusted EBITDA Rise Significantly During the First Half of 2022 with Rising Oil Prices and Refining, Announces Galp

Galp has become one of the largest companies in the world in the oil and natural gas sector. And, on last Monday, it announced the main results for revenue collection in the year 2022 so far.

Thus, the company reported adjusted profits in the second quarter of 2022 of €265 million. An increase of 90% compared to the same period in 2021, when the oil company did not exceed €140 million.

The figure was disclosed in a report sent to the Securities Market Commission (CMVM) and also included other data on the company’s revenue collection.

The revenues collected in profits during the second quarter of 2022 were also greater than those of the first quarter, as Galp reported adjusted profits of €155 million in the first three months of the year.

As for the first half of this year, the numbers are even larger for the oil and gas company.

This is because Galp collected €420 million in profits. Compared to last year, which was €166 million (an increase of €254 million, or 153%), a significant growth.

Regarding adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), the company achieved a total of €1.24 billion in the second half of this year, compared to €571 million in the same period last year.

As for the first half of this year, Galp reached €2.1 billion. An increase of 97% compared to the €1.07 billion in the first half of 2021 in EBITDA.

Great Results in Profits and EBITDA of the Portuguese Company Are Due to the Increase in Oil Prices and Refining Operations

The adjusted profits and adjusted EBITDA figures collected in 2022 by the oil and gas company Galp are significantly attributed to the increase in oil prices, which nearly doubled in 2022.

Additionally, there was also a strong increase in refining margins in Europe, following several refineries being shut down due to geopolitical conflicts involving the Russian nation.

“During the second quarter, Galp’s strong performance across all business segments supported a robust set of results. Our free cash flow reached €488 million, due to rising commodity prices. This allowed us to strengthen our financial position. We made good progress in executing the key projects that support the remodeling of our portfolio. The macroeconomic environment remains extremely volatile, but we are well positioned. Both in our established businesses and in renewables, to meet our investment proposal,” commented CEO Andy Brown in a statement.

Now, Galp continues its race for expansion in oil refining and exploration worldwide. And it will leverage the significant jump in adjusted profits and EBITDA to invest in improvements in its operations.