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]
Galp Energia(GLPEY) - 2024 Q3 - Earnings Call Transcript