Maria João Carioca & João Diogo Marques da Silva, co-CEOs:
The second quarter of 2025 was another strong quarter for Galp, underpinned by a robust operating performance across businesses. In an increasingly uncertain macroeconomic and geopolitical landscape, we navigated the period with resilience and focus, which translated into strong cash generation. This has enabled us to continue rewarding our shareholders while preserving a solid financial foundation.

Our mandate is clear: to ensure continued strategy execution. And as we stay committed to delivering on our priorities, we are confident in our performance and are therefore upgrading our operating expectations for 2025. Securing a strong partnership in Namibia PEL 83 remains an important milestone, and the progress thus far reinforces our confidence in its successful completion.

Second quarter 2025

Galp has recorded a strong set of results in the second quarter of 2025, navigating a higher degree of macroeconomic uncertainty, with a less supportive macro environment and a significant US dollar depreciation against the Euro. Robust operating performance across all business areas led to sound cash generation, supporting a solid financial position despite the concentration of distributions to shareholders during the quarter. By the end of the period, net debt stood at €1.4 bn.

RCA Ebitda reached €840 m:

• Upstream: RCA Ebitda was €403 m, with Brent price down 20% but production up 6% YoY, reflecting the strong availability of the FPSO’s fleet during the quarter, with a limited number of planned and unplanned maintenance activities having taken place.
• Industrial & Midstream: RCA Ebitda was €320 m, with refining throughput and margin realisation impacted by the power outage in Iberia, in April. Still, operating earnings were up 42% YoY, supported by strong Midstream trading performance across commodities, in particular natural gas and LNG supply & trading, with volumes increasing significantly, mostly following the start of liftings from Venture Global LNG under its sales and purchase agreement.
• Commercial: RCA Ebitda was €101 m, 28% higher YoY, reflecting a strong performance supported on market improvements in Spain and Africa, whilst Convenience & Energy Solutions continued to expand having represented 37% of divisional operating contribution.
• Renewables: RCA Ebitda was €9 m, up YoY as the optimisation of revenue streams through ancillary services, enabling a premium over the solar benchmark price, more than offset the lower generation and the weaker market price environment.

Group RCA Ebit was €662 m, mostly following RCA Ebitda, whilst RCA Net Income amounted to €373 m.

Galp’s adjusted operating cash flow (OCF) was €713 m, reflecting the strong operating performance. Cash flow from operations (CFFO) reached €627 m, as a working capital release from reduced inventories was partially offset by reduced payables and US dollar depreciation against the Euro, as well as from an inventory effect which followed the evolution of commodity prices.

Capex in the period amounted to €182 m, primarily allocated to progress on the Bacalhau development, in Brazil, and to Industrial facilities, namely the construction of the Advanced Biofuels Unit and 100 MW electrolyser plant for green hydrogen production in Sines.

Net debt increased to €1.4 bn, after the payment of the final tranche of the dividend related to 2024 fiscal year, amounting to €251 m, and €135 m invested in the ongoing buyback programme execution, while also reflecting currency translation adjustments on cash balances from the US dollar depreciation against the Euro.

First half 2025

Galp’s RCA Ebitda was €1,509 m, while OCF was €980 m, reflecting a robust operating performance during the period from a resilient asset base operating in a more challenging macroeconomic context.

Net capex represented an inflow of €305 m, largely reflecting proceeds from the completion of Area 4 Mozambique stake sale. Investments were mainly allocated to the deployment of Bacalhau, in Brazil, the latest exploration and appraisal campaign in Namibia and the construction of the low carbon industrial projects in Sines.

FCF amounted to €594 m, reflecting the sound cash generation. Net debt was up €208 m compared to the end of 2024, considering dividends to non-controlling interests of €92 m, dividends paid to shareholders of €251 m and €174 m invested through share buybacks, while also reflecting the negative currency exchange effect on cash balances from the US dollar depreciation against the Euro.

Short term outlook

Galp is updating its macroeconomic assumptions and revising its financial guidance for the year, also considering the sound operating performance during the first half, upgrading its Group Ebitda and OCF expectations for 2025.

Upstream production for 2025 is now expected in the range of 105–110 kboepd, reflecting the strong production availability recorded in the first half of the year and the planned maintenance programme envisioned for the rest of the year.

Industrial & Midstream 2025 Ebitda guidance is raised to >€800 m, incorporating contributions from Venture Global LNG volumes and a more robust macroeconomic environment, namely in natural gas prices.

KeyFacts Energy: Galp Energia Brazil country profile