--Portuguese energy company swung to a net loss in the second quarter

--No interim dividend will be distributed in the second half of the year

--Brent crude price assumptions have been lowered due to weaker market conditions 



  By Giulia Petroni 


  Galp Energia SGPS SA said Monday that it swung to a net loss in the second quarter and that it won't be distributing an interim dividend in the second half of the year. 


  The Portuguese energy company said it registered a net loss of 154 million euros ($179.5 million) compared with a profit of EUR231 million a year earlier, partly due to inventory effects and non-recurring items. Adjusted for replacement costs, the net loss was of EUR52 million compared with profit of EUR199 million in 2019. 


  Sales dropped to EUR1.82 billion from EUR4.44 billion for the period, the company said. 


  Earnings before interest, taxes, depreciation and amortization came in at EUR207 million, down from EUR666 million the previous year. 


  Cash flow from operations was down on year to EUR160 million due to weaker market conditions caused by the coronavirus pandemic. 


  As previously announced, net entitlement production averaged 130,300 barrels of oil equivalent a day compared with 109,800 boe/d in 2019. The refining margin fell to $1.8 boe from $3 boe in the year-earlier, while raw materials processed in the company's refining system were 49% lower on year due to operational slowdowns caused by the lockdown in the Iberia region. 


  Galp said it won't be distributing an interim dividend in relation with its fiscal 2020 dividend in the second half in order to preserve its financial position. The 2020 dividend proposal will be made considering full-year results, which are expected to be announced in the first quarter of 2021. 


  The company also said it has revised down its oil-price assumptions for the short and medium term. It now expects Brent crude at $40/bbl in 2020 and $45/bbl in 2021. 


  Write to Giulia Petroni at giulia.petroni@wsj.com