Galp’s 4Q22 results will be published on February 13, before the opening of Euronext Lisbon, together with a management presentation. On that day, the Company will hold an analysts’ conference call at 14:00 (Lisbon/London time).
Consolidated earnings and financial position
- Expecting a robust operational cash flow (OCF) generation and working capital release, which includes the unwind of all gas derivatives margin account balances, as expected.
- Net debt expected to be reduced to c.€1.6 bn at the end of quarter.
- Still assessing the impact from windfall taxes in Portugal and Spain. Any estimated impacts to be booked as special items.
Upstream
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Working interest production (kboepd) |
124.8 |
127.6 |
130.4 |
5% |
2% |
| Oil production (kbpd) |
111.2 |
114.8 |
115.3 |
4% |
0% |
| Net entitlement production (kboepd) |
123.0 |
126.1 |
128.6 |
5% |
2% |
| Angola (kbpd) |
10.7 |
10.3 |
10.8 |
1% |
5% |
| Brazil (kboepd) |
112.3 |
115.8 |
115.8 |
3% |
0% |
| Mozambique (kboepd) |
- |
0.1 |
1.9 |
- |
n.m. |
- Working interest production up QoQ, considering some contribution from Coral FLNG in Mozambique, which had its first cargo in November.
- Oil hedges covered 1.6 mbbl during 4Q22 (13% of production).
Commercial
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Oil products - client sales (mton) |
1.8 |
2.0 |
1.8 |
(1%) |
(9%) |
| Natural gas sales - client sales (GWh) |
4,509 |
4,180 |
4,270 |
(5%) |
2% |
| Electricity - client sales (GWh) |
1,121 |
979 |
940 |
(16%) |
(4%) |
- Oil products sales slightly declined YoY, halting the post pandemic recovery trend, following reduced demand in Iberia, especially in the B2B segment.
- Natural gas and electricity sales impacted by activity reduction, especially in the B2B segment, as well as lower consumption in the B2C segment given the warmer temperatures.
- 4Q22 RCA Ebit to include an impairment of c.€100 m in retail distribution assets.
Industrial & Energy Management
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Raw materials processed (mboe) |
13.6 |
22.9 |
20.5 |
51% |
(10%) |
| Galp refining margin (USD/boe) |
5.6 |
7.7 |
13.5 |
n.m. n.m. |
| Oil products supply1 (mton) |
3.7 |
4.3 |
3.8 |
2% |
(13%) |
| NG/LNG supply & trading volumes1 (TWh) |
14.3 |
13.1 |
12.7 |
(11%) |
(3%) |
| Trading (TWh) |
6.6 |
5.6 |
5.5 |
(17%) |
(2%) |
| Sales of electricity from cogeneration (GWh) |
119 |
177 |
166 |
39% |
(6%) |
1 Includes volumes sold to the Commercial segment.
- Refining raw materials processed decreased QoQ, following the planned maintenances activities. Refining margin higher QoQ, capturing the more favourable market environment.
- Refining margin hedges covered 5.6 mboe during 4Q22 (27% of throughput), with an expected impact of c.€80 m at the Ebitda level.
- Matosinhos’ site transformation project with a c.€60 m provision (impact in RCA Ebit).
- NG/LNG supply & trading impacted by additional sourcing restrictions and challenging European natural gas environment.
Renewables & New Businesses
| 4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Renewable installed capacity1 (GW) |
|
|
| Gross (100%) |
1.0 |
1.3 |
1.4 |
42% |
7% |
| Equity to Galp |
0.7 |
1.3 |
1.4 |
89% |
7% |
| Renewable generation (GWh) |
|
|
| Gross (100%) |
213 |
693 |
307 |
44% |
(56%) |
| Equity to Galp |
157 |
627 |
307 |
95% |
(51%) |
| Galp solar sale price (EUR/MWh) |
198 |
126 |
101 |
(49%) |
(20%) |
1 Installed capacity at the end of the period.
- Renewables installed capacity reached 1.4 GW, following the commercial start-up at year-end of c.100 MW of solar projects in Iberia.
- Gross renewable energy generation down QoQ, reflecting seasonally lower sunlight hours. All current operating portfolio fully owned by Galp since July 2022.
Market Indicators
| |
4Q21 |
3Q22 |
4Q22 |
Var. YoY |
Var. QoQ |
| Exchange rate (EUR/USD) |
1.14 |
1.01 |
1.02 |
(11%) |
1% |
| Dated Brent price (USD/bbl) |
79.8 |
100.8 |
88.9 |
11% |
(12%) |
| Japan/Korea Marker LNG price (EUR/MWh) |
104.8 |
152.3 |
100.1 |
(5%) |
(34%) |
| Dutch TTF natural gas price (EUR/MWh) |
92.0 |
196.2 |
94.4 |
3% |
(52%) |
| Iberian MIBGAS natural gas price (EUR/MWh) |
94.2 |
138.5 |
75.4 |
(20%) |
(46%) |
| Iberian power baseload price1 (EUR/MWh) |
211.1 |
146.3 |
113.2 |
(46%) |
(23%) |