The decline in international refining margins is another factor that has led to the decline in revenue.
Galp posted adjusted net profit of €192 million (US$218 million) in the first quarter of 2025, down 41% year-over-year, driven by increased scheduled maintenance shutdowns at its production units in Brazil and lower international refining margins, the oil company said in a statement Monday.
Thus, gross operating profit (EBITDA) was €669 million (US$760 million), down 29% compared to the same period in 2024. This figure is in line with the decline in results for Galp's two main business areas: Upstream in Brazil, where EBITDA fell 32% to €385 million (US$437 million); and Industrial & Midstream, which includes the Refining division, where EBITDA fell 28% to €218 million (US$247 million).
In this quarter, Galp invested a total of 295 million euros (US$335 million), with the majority of this investment allocated to the evaluation of oil reserves in Namibia, the Bacalhau project in Brazil, and the transformation projects underway at the Sines refinery.
In operational terms, Galp's total oil and gas production in Brazil fell 3% to 104,000 barrels per day. Despite this, Galp maintains its average production targets through the end of the year, having completed 40% of the maintenance operations planned for the entire year in three months.
In a "complex" quarter for the Refining and Midstream areas, despite the availability of refining equipment, adverse weather conditions contributed to a 4% drop in raw materials processed in Sines, to the equivalent of 21.6 million barrels.
Furthermore, the refining margin, i.e., the profit earned per barrel processed, fell from US$12 to US$5.6, to which must be added the refinery's operating costs of US$3 per barrel.
This margin depends essentially on the difference between the price of purchased raw materials, such as crude oil, and the price of sold products, such as diesel and gasoline, both determined by supply and demand in international markets.
Thus, during the second quarter of this year, the company expects to make a second dividend payment on account of 2024 results, in the amount of 0.34 euros (US$0.38) per share, pending approval at the General Meeting scheduled for May 9.
RENEWABLES BUSINESS UNIT
For its part, the Renewables business unit experienced a slight decline in production, "as expected" in one of the rainiest quarters recorded in recent years, the company explained.
However, more active production management, with a particular focus on the systems services market, has allowed the company to maintain its average sales price, resulting in a 12% increase in the area's EBITDA, reaching a total of €10 million (US$11.3 million).
Also in the Renewables division, Galp launched the operation of its first battery associated with a photovoltaic park in Alcoutim, one of the largest in operation in Portugal. The company thus begins the process of hybridizing its renewable energy production assets.
