Galp Energia, the Portuguese oil and gas company, has announced that it anticipates lower earnings this year as a result of limited refining activities impacting its fourth-quarter results.
Financial Outlook
Galp expects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be around €3.1 billion ($3.34 billion) in 2024, compared to €3.56 billion in the previous year. The company reported an 8% decrease in adjusted EBITDA for 2023 compared to the previous year.
To bolster shareholder value, Galp will implement a buyback program of €350 million and increase its dividend for 2023 by 4% to €0.54 per share.
Fourth-Quarter Performance
In the fourth quarter of last year, Galp recorded a net profit of €336 million, a decline from the €455 million reported in the same period of 2022.
Adjusted EBITDA for the quarter reached €720 million, down from €951 million in the prior year. Adjusted EBIT fell to €411 million from €475 million.
Factors Impacting Results
Galp acknowledged that while its upstream and midstream activities performed well during the quarter, limited refining operations due to renovations at its Sines site adversely affected results. The renovations were aimed at producing cleaner energy.
At 0829 GMT, Galp’s shares were down 1.5% to €14.17.
