Portuguese oil and gas company Galp Energia reported a 16% increase in adjusted third-quarter profit on Monday, thanks to soaring oil prices and a near-doubling of its refining margin.
Oil & gas companies around the world received a boost after the war in Ukraine sent energy prices soaring just as demand was rapidly recovering with the lifting of pandemic restrictions.
Galp's July-September adjusted net profit was 187 million euros, up from 161 million euros a year earlier and above the 177 million euros expected by 21 analysts polled by the company.
Adjusted Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose 29% to 784 million euros, although fell short of the average forecast of 830 million euros.
Higher oil prices lifted its upstream adjusted EBITDA by 17% to 612 million euros, despite its share of oil and gas production from projects in which it has a stake remaining almost stable at 127,600 barrels of oil equivalent per day.
Brent oil prices rose to an average of $110.8 a barrel in the third quarter from $73.4 a year ago, Galp said.
The company also said its refining margin rose to $7.70 a barrel in the quarter, up from $4.1 in the same period last year.
It said its direct sales of refined products to clients rose 12% year on year to 2.0 million tonnes.
Galp's main activity is upstream in the rich 'off shore' of Brazil, but it also has a small exploration and production operation in Angola and runs renewable energy plants.
