Latest news with #MariaJoaoCarioca
TimesLIVE
29-04-2025
- Business
- TimesLIVE
Portugal's Galp seeks Namibia oil and gas partner
Portugal's Galp Energia has resumed talks with potential partners as it seeks to develop a discovery in Namibia, the company said on Monday after reporting a 29% drop in adjusted first-quarter core profit. In February, Galp said it had found a significant presence of light oil and gas condensate in a fifth well in the Mopane field offshore of Namibia. Co-CEO Maria Joao Carioca said the well "unlocked a new exciting area within Mopane" and Galp will advance on feasibility studies "in the coming months". At the same time, it is seeking to sell part of its 80% stake in Mopane's Petroleum Exploration Licence 83 to a player who would become its operator. "A partnership is our natural and preferred next step. We are re-engaging with interested parties we have had conversations with before and data is now being shared with them," Carioca told a conference call with analysts. Also on Monday, Galp reported first-quarter adjusted earnings before interest, taxes, depreciation and amortisation fell to €669m (R14.15bn), hit by falling oil output and lower refining margins, but slightly above an average of €666m (R14.09bn) expected by 17 analysts.
Yahoo
29-04-2025
- Business
- Yahoo
Galp Energia SGPS SA (GLPEF) Q1 2025 Earnings Call Highlights: Strategic Divestments and ...
Upstream Production: 104,000 barrels due to planned maintenance. Cash Breakeven: $20 per barrel for Upstream operations. Cash-In from Divestments: $870 million from Mozambique's Area 4 and Angola earnout. Planned Maintenance: Over 40% of full-year plan completed in Q1. Release Date: April 28, 2025 Warning! GuruFocus has detected 4 Warning Sign with TRATF. For the complete transcript of the earnings call, please refer to the full earnings call transcript. Galp Energia SGPS SA (GLPEF) reported a solid start to 2025 with robust contributions from its Iberian businesses, offsetting weaker Upstream performance. The company successfully completed the divestment of its stake in Mozambique's Area 4, resulting in an $870 million cash inflow. Galp's Upstream operating base maintains a cash breakeven of $20 per barrel, showcasing resilience amid market volatility. The company is engaging with credible top-tier operators for potential partnerships in Namibia, indicating strategic growth opportunities. Galp's disciplined capital allocation and focus on maintaining a lean organization are expected to support agile decision-making and long-term value creation. The Upstream performance was slightly weaker due to planned maintenance, resulting in over 40% of the full-year stoppage days being utilized in Q1. Galp refrained from updating its financial guidance due to market uncertainty, reflecting cautiousness amid volatile conditions. The farm-out process in Namibia may take time, with no strict timeline for completion, potentially delaying strategic partnerships. Refining margins were pressured in April, with expectations of $6 per barrel for 2025-2026 amid uncertain demand dynamics. The company faces challenges in optimizing CapEx amid lower oil prices, with potential delays in investment decisions to maintain financial stability. Q: Can you provide more details on the Namibia farm-down process and the timeline for potential partnerships? A: Maria Joao Carioca, Co-CEO and CFO, explained that Galp is reengaging with interested parties for partnerships in Namibia. Data sharing is ongoing, with a focus on aligning interests for a fair valuation. The process is expected to conclude by Q4, but there is no strict timeline, emphasizing no procrastination but also no rush. Q: How is Galp handling capital priorities given the current market downturn and unchanged financial guidance? A: Maria Joao Carioca stated that Galp maintains a resilient base case with a cash breakeven of $20 per barrel. Despite market uncertainties, Galp is not revising its guidance and has already reduced CapEx by 20% from previous estimates. There is room for further optimization if needed, but the focus remains on disciplined investment decisions. Q: What is the status of the Bacalhau project in Brazil, and how does it impact Galp's financial outlook? A: Maria Joao Carioca confirmed that first oil from Bacalhau is expected later in 2025, with ramp-up continuing through 2026 and plateau expected in 2027. The project is anticipated to add approximately $400 million in operating cash flow annually at plateau, contributing significantly to Galp's portfolio. Q: Can you elaborate on the potential for a third hub in the Mopane complex in Namibia? A: Maria Joao Carioca indicated that while there is great potential in Mopane, the current focus is on developing the Northwest and Southeast regions. The idea of a third hub is premature, and the priority is to integrate data from the initial exploration campaign to inform future development concepts. Q: How is Galp addressing the challenges of local content and collaboration in Namibia, as emphasized by the Namibian government? A: Maria Joao Carioca noted that Galp has had productive discussions with the Namibian government and views local content and synergies as normal and beneficial. Drawing from experiences in Brazil, Galp is committed to ensuring that the development of Namibian assets benefits both the company and the local community. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
18-02-2025
- Business
- Yahoo
Galp Energia SGPS SA (GLPEF) Q4 2024 Earnings Call Highlights: Strong Performance and Strategic ...
Operating Cash Flow: Expected to increase by 20% in 2026 compared to 2024. EPS: Increased by 15%. CapEx: Emphasis on disciplined capital expenditure. Dividend: Proposal to increase cash dividend base. Release Date: February 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Galp Energia SGPS SA (GLPEF) reported strong performance across all business segments in 2024, with significant achievements in Namibia, including the drilling of four wells in the Northwest region of Mopane. The company plans to increase its cash dividend base, with EPS up by 15%, reflecting confidence in its growth plan and disciplined CapEx. Galp Energia SGPS SA (GLPEF) expects operating cash flow to increase by 20% in 2026 compared to 2024, driven by the start of key projects and normalized asset operations. The company is maintaining a disciplined approach to its renewables business, with plans for a 400-megawatt increase between 2025 and 2026, focusing on projects that meet expected returns. Galp Energia SGPS SA (GLPEF) has a solid financial position, allowing flexibility in its farm-down strategy for its assets in Namibia, without rushing into decisions that could compromise value. The company anticipates a weaker macroeconomic environment in 2025, with one-off maintenance activities expected to limit operating performance. Galp Energia SGPS SA (GLPEF) faces challenges in its renewables business, with returns currently below target levels, raising questions about the accelerated growth strategy. There is uncertainty regarding the permeability of wells in Namibia, which could impact plateau production levels and the ability to reinject gas. The company has not provided specific guidance on the gas strategy for its Namibia operations, leaving questions about long-term plans for gas handling. Galp Energia SGPS SA (GLPEF) is undergoing a competitive recruitment process for a permanent CEO, which could impact strategic continuity and leadership stability. Warning! GuruFocus has detected 6 Warning Signs with ASX:CGF. Q: Can you provide an update on the permeability issues in Namibia and the potential impact on production levels? A: Maria Joao Carioca, Co-CEO & CFO, stated that they are still gathering and analyzing data from their exploration activities in Namibia. They have not revised their numbers yet and are focused on integrating all the data, including seismic information, to assess the situation accurately. Q: Why is Galp continuing to push for growth in the renewables sector despite lower-than-target returns? A: Maria Joao Carioca explained that Galp remains disciplined in its investment plans, ensuring that each project meets expected returns. Georgios Papadimitriou, Executive Director, added that their growth strategy is selective, focusing on solar, storage, and hybridization projects that offer good returns. Q: What is the status of the farm-down process in Namibia, and how does it align with your development plans? A: Maria Joao Carioca mentioned that while a farm-down is a natural solution for the asset, they are not in a rush due to their solid financial position. They aim to align incentives with a future partner and are focused on analyzing and integrating data before proceeding. Q: Can you elaborate on the expected increase in operating cash flow for 2026 despite similar EBITDA guidance to 2024? A: Maria Joao Carioca highlighted that the increase in operating cash flow is due to greater fiscal efficiency in Bacalhau and a return to normalized levels after one-off maintenance in 2025. The start of key projects will also contribute to this growth. Q: What are the key factors driving the decision to accelerate low-carbon CapEx towards industrial projects? A: Maria Joao Carioca explained that the acceleration is for projects already undergoing development stages, crucial for Galp's industrial transformation. These projects are expected to deliver IRRs above 12%, aligning with their investment criteria. Q: How does Galp plan to handle the gas strategy in Namibia, especially regarding reinjection and future plans? A: Maria Joao Carioca stated that they are not providing specific guidance on gas content yet, as they are still analyzing overall recoverability and development concepts. The focus is on assessing the feasibility of development concepts for the first hub. Q: What is the rationale behind the 15% increase in the dividend, and how does it relate to your financial strategy? A: Maria Joao Carioca explained that the increase is based on the visibility of upcoming projects and expected 20% growth in operating cash flow by 2026. The decision aligns with maintaining a competitive distribution strategy anchored on one-third of overall OCF. Q: Can you provide more details on the additional 50 days of maintenance in the upstream sector and its impact? A: Nuno Holbech Bastos, EVP Upstream, clarified that the additional maintenance is a one-off investment to ensure the integrity and longevity of facilities, specifically addressing corrosion issues. The impact is expected to be around 2,000 to 3,000 barrels per day. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
