Financial Data and Key Metrics Changes - The company reported robust performance despite a less supportive refining and commodities price environment, indicating confidence in beating full-year guidance [5][6] - The CapEx guidance for the next three years is expected to be less than €1 billion per annum, with adjustments anticipated following the closure of the Mozambique divestment [14][15] Business Line Data and Key Metrics Changes - The Downstream segment showed strong performance in convenience client services, while industrial initiatives in energy efficiency and green hydrogen are progressing well [6] - The Upstream segment is actively drilling in Namibia, with the third well currently underway and plans for additional wells [7][8] Market Data and Key Metrics Changes - The refining margins have decreased from earlier in the year, with expectations of continued pressure due to increased gasoline exports from China [50][51] - The company is monitoring the impact of the Dangote refinery ramping up production, which may further pressure refining margins [57] Company Strategy and Development Direction - The company aims to maintain an 80% stake in Namibia until further drilling results are obtained, indicating a cautious approach to partnerships [8][46] - Preliminary work on FPSO design is ongoing to ensure readiness for development once a partnership is established [52] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming drilling results in Namibia and the potential for significant discoveries [37][72] - The company is not rushing into decisions regarding the lithium joint venture due to challenging market conditions and regulatory uncertainties [26] Other Important Information - The company is progressing well with its green hydrogen projects, with commercial operations expected by 2026 [55] - The RED III directive implementation in Portugal is planned for mid-2025, which is anticipated to foster green hydrogen demand [56] Q&A Session Summary Question: Midstream contribution and guidance for 2025 - Management expects a strong contribution from the midstream segment, but is not yet incorporating Venture Global volumes into guidance [12][13] Question: CapEx expectations and Mozambique divestment - CapEx is expected to remain within the three-year guidance, with significant impacts anticipated from the Mozambique divestment closure [14][15] Question: Namibia drilling details - The current well is an appraisal well targeting AVO-1, with no back-to-back drilling due to ongoing seismic analysis [20][21] Question: Lithium joint venture delay - The project is delayed due to challenging market conditions and concerns about the viability of lithium mining in Portugal [26][27] Question: Tupi project updates - Discussions are ongoing regarding the Tupi field life extension and additional FPSO requirements [33] Question: Refining market outlook - Refining margins are under pressure, with expectations of continued challenges from increased gasoline exports from China and the Dangote refinery [50][57] Question: Non-fuel performance in convenience retail - Non-fuel contributions to EBITDA have increased significantly, with ongoing transformation efforts in service stations [61][62] Question: Forward-looking guidance - Management is currently assessing significant developments and will provide updates on forward-looking guidance soon [78]

Operational Highlights - Upstream production reached 112 thousand barrels of oil equivalent per day (kboepd)[1,2] - Refinery raw materials processed amounted to 22 million barrels of oil equivalent (mboe)[1,4] - Oil products sold to direct clients totaled 1.9 million tons (mton)[1,6] - Renewable power generation reached 853 gigawatt-hours (gwn)[1,9] Financial Performance - RCA Ebitda was €820 million[1,12] - Operating Cash Flow (OCF) amounted to €540 million[1,15] - Net Capex was €229 million[1,15] - Net debt to Ebitda ratio stood at 0.5x[1] - Upstream RCA Ebitda reached €541 million[12] - Industrial & Midstream RCA Ebitda was €165 million[12] - Convenience & Customer Solutions Ebitda was €31 million[7] Outlook and Guidance - The company expects to reach 1.6 GW of renewable installed capacity by the end of 2024[9] - Full year throughput of c90 mboe is expected due to no relevant refinery stoppages in 2024[5] - The company's 2024 financial guidance includes RCA Ebitda exceeding €3.1 billion, OCF exceeding €2.0 billion, and net capex averaging less than €1.0 billion per year from 2023-2025[17]

Core Viewpoint - The Zacks Oil and Gas - Refining & Marketing industry is facing declining fuel margins and rising costs due to inflation, but strong demand for gasoline and distillates may provide some support for refiners [1][2][5]. Industry Overview - The industry includes companies that sell refined petroleum products and non-energy materials, and some operate terminals and transportation services [3]. - The primary activity involves processing crude oil into various refined products, with refining margins being highly volatile and influenced by several factors including inventory levels and demand [4]. Trends Defining the Industry's Future - **Refining Margins Under Pressure**: Refining margins have weakened from 2022 highs, with crack spreads narrowing due to lower refined product prices relative to crude oil. Elevated inventories and demand uncertainties are additional risks [5]. - **Refiners Poised for Growth Amid Rising Product Demand**: Strong demand for gasoline and diesel is driven by travel and mobility, with gasoline inventories slightly below the five-year average and distillate stocks 9% lower [6][7]. - **Supply-Chain Challenges**: The industry faces supply-chain disruptions and cost inflation, limiting refiners' ability to deliver volumes and impacting profitability [8]. Industry Performance - The Zacks Oil and Gas - Refining & Marketing industry ranks 205, placing it in the bottom 18% of over 250 Zacks industries, indicating dull near-term prospects [9][10]. - The industry's earnings estimate for 2024 has decreased by 20.9% over the past year, with a decline of 8.6% for 2025 [11]. Comparative Performance - The industry has underperformed compared to the broader Zacks Oil - Energy Sector and the S&P 500, with a decline of 2.9% over the past year versus a 27.5% gain for the S&P 500 [13]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 3.55X, lower than the S&P 500's 18.90X but above the sector's 3.09X [15]. Stocks in Focus - **Galp Energia**: A Portuguese integrated energy firm with a market capitalization of $14.5 billion and a four-quarter average earnings surprise of 64.3% [17]. - **Valero Energy**: The largest independent refiner in the U.S. with a refining capacity of 3.2 million barrels per day and an expected EPS growth rate of 4% [19]. - **Murphy USA**: A leading independent retailer with a market capitalization of $10.8 billion, benefiting from its proximity to Walmart supercenters [21].

Industry Overview - The Zacks Oil and Gas - Refining & Marketing industry includes companies that sell refined petroleum products and non-energy materials, and operate terminals and transportation services [2] - Refining margins are volatile and influenced by petroleum product inventories, demand, imports, and capacity utilization [2] Current Trends - Refining margins have weakened from the highs of 2022, with crack spreads narrowing due to lower refined product prices relative to crude oil [3] - Strong demand for gasoline and diesel is driven by travel and mobility, with gasoline inventories slightly below the five-year average and distillate stocks 9% lower [4] - Supply-chain challenges and cost inflation are impacting refiners' ability to deliver volumes, with higher transportation expenses and labor shortages limiting profitability [5] Industry Performance - The industry is currently ranked 205 in the Zacks Industry Rank, placing it in the bottom 18% of over 250 Zacks industries, indicating dull near-term prospects [6][7] - The industry's earnings estimate for 2024 has decreased by 20.9% over the past year, while the estimate for 2025 has fallen by 8.6% [8] Valuation Metrics - The industry is trading at an EV/EBITDA ratio of 3.55X, significantly lower than the S&P 500's 18.90X but above the sector's 3.09X [11] - Over the past five years, the industry's EV/EBITDA has ranged from 1.84X to 6.76X, with a median of 3.67X [11] Stocks in Focus - **Galp Energia**: A Portuguese integrated energy firm with a market capitalization of $14.5 billion and a four-quarter average earnings surprise of 64.3% [14] - **Valero Energy**: The largest independent refiner in the U.S. with a refining capacity of 3.2 million barrels per day, expected EPS growth rate of 4% [15] - **Murphy USA**: A leading independent retailer with a market capitalization of $10.8 billion, shares have gained 50.9% in a year [18]

35 106 kboepd Upstream production1 Renewable power generation OCF 2Q24 Results July 22, 2024 9 _94 1.8 mton 779 gwh €849 m Ebitda RCA e-238 m Net capex 0.35 × Net debt to Ebitda Continued execution of mid and downstream transformation Balance sheet strengthened to support future investments 2Q24 Results 2 liabilities 106 kboepd 81 $/ьы Oil realisations 1.7 $/boe Unit production costs Contingent Mozambique farm-out c.$650 m Crystallising value to support higher-return growth options 2Q24 Results Bacalhau FPS ...

unprecedented financial muscle and the resources to keep delivering long-term growth from high return projects. Yes. Thank you. First question is on the other bit of guidance that you changed this quarter is OCF and EBITDA guidance. You have a -- we have an improvement and change macro. YouÂ're taking out Mozambique. Can you just talk about whatÂ's actually going better than expected in there and just sort of the key reasons why? And second question, sorry, just going back to Namibia. Can we -- Filipe, can ...

Galp Energia SGPS S.A. (GLPEY) announced that its 10% stake in the Area 4 concession in Mozambique has been acquired by ADNOC (Abu Dhabi National Oil Company). In recent news, ADNOC has also acquired an 11.7% stake in Phase 1 of NextDecade's Rio Grande LNG project in Texas. The UAE oil giant's latest acquisition aligns with its strategy to expand its low-carbon energy portfolio. The acquired assets include the Coral South Floating LNG (FLNG) facility, which is currently operational, along with the Coral Nor ...

Galp Energia, SGPS, S.A. (OTCPK:GLPEF) Q1 2024 Results Conference Call April 30, 2024 6:00 AM ET Company Participants Otelo Ruivo - Head of Investor Relations Filipe Silva - CEO & Vice Chairman of the Board of Directors Daniel Elias - CFO Adriano Bastos - Head of Upstram Special Projects Conference Call Participants Giacomo Romeo - Jefferies Biraj Borkhataria - RBC Matt Smith - Bank of America Alessandro Pozzi - Mediobanca Pedro Alves - CaixaBank Sasikanth Chilukuru - Morgan Stanley Lydia Rainforth - Barcla ...

Galp Energia SGPS SA (GLPEY) , the Portuguese multinational energy company, has made significant oil discoveries in Namibia’s Orange Basin. It has completed the first phase of exploration of the Mopane field in the Petroleum Exploration License (PEL) 83 and estimated that the field could contain nearly 10 billion barrels of oil.PEL 83 is operated by Galp Energia, which owns an 80% stake along with its partners, National Petroleum Corporation of Namibia (NAMCOR) and Custos Energy, who hold 10% each. Sintana ...

Galp Energia SGPS SA (GLPEY) , along with its partners National Petroleum Corporation of Namibia (NAMCOR) and Custos Energy, discovered oil in the Mopane 2X well. The Mopane 2X well has reached its designated depth in the petroleum exploration license (PEL) 83.The Mopane 2X well, drilled in the Orange Basin, offshore Namibia has successfully discovered a substantial column with light oil within reservoirs of excellent quality. The drilling operation included the AVO-3 exploration target, the AVO-1 appraisal ...