Portugal’s Galp Energia on Monday raised its core profit target for the full year after a better-than-expected performance in the second quarter and said it expects to find a partner to develop a promising oil discovery offshore Namibia.
Shares were up 2.5% in Monday mid-morning trading.
Galp raised its target for adjusted earnings before interest, taxes, depreciation and amortisation this year to more than 2.7 billion euros ($3.14 billion), up from a previous 2.5 billion euro forecast.
The raised forecast reflects the contribution of its gas trading business, lifted by deliveries of liquefied natural gas cargoes from Venture Global’s VG.N Calcasieu Pass export facility in Louisiana.
Galp is due to receive 1 million metric tons of LNG a year from the plant in a take-or-pay deal with Venture agreed in 2018.
In the second quarter, Galp’s adjusted EBITDA was 840 million euros, surpassing the 724 million euro consensus provided by the company, while its second-quarter adjusted net profit rose 25% to 373 million euros.
Lower taxes and higher oil production offset lower crude prices and narrower refining margins, the company said.
Galp, whose main business is extracting crude from rich fields offshore Brazil, said it is confident it can find a partner to develop the Mopane field off the coast of Namibia, which was initially estimated to hold at least 10 billion barrels of oil and gas equivalent.
Galp said it is in talks with potential partners to sell part of its 80% stake to an oil company that will be the operator of the field.
“Securing a strong partnership in Namibia… remains an important milestone, and the progress thus far reinforces our confidence in its successful completion,” the company said.
($1 = 0.8586 euros)
Source: WAES
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