Edition 1450
18 November 2017
Edition: 1450

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Energy companies record strong profits

by TPN/ Lusa, in Business · 02-11-2017 14:31:00 · 0 Comments

Portuguese energy companies Galp and EDP have this week posted strong
results following figures became relating to the end of September.

Energy companies record strong profits

In the third quarter of the year, Portuguese oil and gas company Galp posted an adjusted net profit of €166 million euros, up €15 million from the previous quarter and an increase of €51 million (45 percent) compared to the same period of last year.
According to the third quarter results reported to the Portuguese Securities and Exchange Commission (CMVM), in the third quarter of the year EBITDA (earnings before interest, taxes, depreciation and amortization) totalled €487 million, €103 million (27 percent) more than in the same period of 2016.
According to the company, EBITDA reached €1.379 million euros in the first nine months of the year, “of which 74 percent came from activities abroad.”
The results reported to the CMVM also showed EBITDA of the Exploration and Production business of €215 million, €88 million higher than in the same period of 2016, bolstered by an increase in production and prices of oil and natural gas, although affected by the depreciation of the US dollar against the euro .
The EDIBTA of the G&P (Gas & Power) business stood at €45 million, with sales to direct customers “offsettng the decline in volumes sold in the trading segment”.
Average working interest production reached 94,600 barrels of oil per day, an increase of 28 percent over the same period of the previous year, “due to the progressive development of the Lula and Iracema projects in Brazil.”
Investment amounted to €227 million in the third quarter, of which 82 percent was allocated to development and production activities, “namely in the BM-S-11 block in Brazil.”
At 30 September, net debt stood at €1.5 billion, considering the loan to Sinopec as cash and cash equivalents, with the net debt to EDIBTA ratio being 0.9x.
On 27 October, Galp, through Petrogal Brasil, acquired a 20 percent stake in the Norte de Carcará license under the 2nd Production Sharing Round in Brazil.The consortium also includes Statoil (operator) and ExxonMobil, each with a 40 percent stake.
The consortium offered a profit oil share of 67.12 percent.
Meanwhile, Portugal’s EDP Renováveis on Tuesday reported a profit in the first nine months of the year that was almost five times that for the same period in 2016.
In a statement sent to the CMVM, the Madrid-based renewables unit of Portugal’s Energias de Portugal (EDP) said that its nine-month net profit was €165 million, up 468 percent on the year-earlier period, when it had €29 million. It said the profit adjusted for non-recurring events was €160 million, up 45 percent from a year earlier.
That was on turnover of €1.346 billion, up 11 percent on the year. According to the company, this was largely thanks to “new operational capacity, a higher average selling price, together with the positive impact of the high usage factor of [wind] parks previously in
operation.”
Earnings before interest and tax rose 50 percent to €606 million, while EBITDA was up by 17 percent to €991 million.
The company’s net profit in the first nine months of last year had been down 71 percent on the 2015 nine-month figure, which was €100
million.

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Edition 1450
18 November 2017
Edition: 1450

Read this week's issue online exactly as it appears in print.

Twitter