Galp presents today its 1Q21 results. To access the report and all documents related with the results, please clickhere.
Galp's adjusted operating cash flow1 reached €445 m, up 46% YoY, driven by an improved Upstream macro context, which more than offset the weaker downstream environment. CFFO was up 54% YoY, to €377 m including changes in working capital and inventory effect, as well as special items registered during the period.
FCF generation reached €175 m, or €518 m including proceeds of €343 m from the GGND (Galp Gás Natural Distribuição, S.A.) stake sale, which was completed during the quarter.
Net debt at the end of the period was €1,552 m, leading to a net debt to RCA Ebitda ratio of 1.1x.
RCA Ebitda was €499 m, with the following highlights:
- Upstream: RCA Ebitda was €438 m, a 53% increase YoY, reflecting higher oil prices, which offset the lower production and the depreciation of the USD against the Euro.
Working Interest (WI) production was down 5% YoY to 125 kboepd, impacted by offshore operational and logistics constraints. - Commercial: RCA Ebitda of €69 m, down 23% YoY, driven by the decline in oil products and natural gas sales during the quarter, reflecting the weak Iberian demand conditions resulting from the continuing lockdowns.
- Refining & Midstream: RCA Ebitda was -€6 m, a €96 m decrease YoY, impacted by a negative Refining contribution, reflecting the pressured refining margins environment, and a weak Midstream contribution, impacted by gas sourcing restrictions, a negative swing in pricing lag effects and higher regasification costs in Portugal.
- Renewables & New Businesses: All solar plants have resumed normal operations by the end of the quarter, with no relevant Ebitda in the quarter
RCA Ebit was up 30% YoY to €284 m, supported by the stronger operational contribution and lower DD&A.
RCA net income was €26 m. IFRS net income was €161 m, with an inventory effect of €101 m and special items of €34 m.
1The adjusted operating cash flow indicator represents a proxy of Galp's operational performance excluding inventory effects, working capital changes and special items.
€m | |||||
1Q20 | 4Q20 | 1Q21 | Var. YoY | % Var. YoY | |
RCA Ebitda | 469 | 410 | 499 | 30 | 6% |
Upstream | 286 | 319 | 438 | 153 | 53% |
Commercial | 90 | 71 | 69 | (20) | (23%) |
Refining & Midstream | 90 | 17 | (6) | (96) | n.m. |
Renewables & New Businesses | (1) | (3) | (2) | 1 | n.m. |
RCA Ebit | 217 | 159 | 284 | 66 | 30% |
Upstream | 145 | 161 | 314 | 168 | n.m. |
Commercial | 68 | 47 | 44 | (24) | (35%) |
Refining & Midstream | 9 | (51) | (67) | (76) | n.m. |
Renewables & New Businesses | (7) | (1) | (3) | (4) | (62%) |
RCA Net income | 29 | 3 | 26 | (4) | (13%) |
IFRS Net income | (257) | (35) | 161 | 418 | n.m. |
Special items | (8) | (60) | 34 | 42 | n.m. |
Inventory effect | (278) | 22 | 101 | 379 | n.m. |
Capex | 144 | 173 | 178 | 33 | 23% |
Adjusted operating cash flow | 305 | 373 | 445 | 140 | 46% |
Upstream | 132 | 241 | 390 | 258 | n.m. |
Commercial | 90 | 70 | 67 | (24) | (26%) |
Refining & Midstream | 84 | 42 | (9) | (94) | n.m. |
Renewables & New Businesses | (1) | (3) | (2) | 2 | n.m. |
Cash flow from operations | 244 | 231 | 377 | 133 | 54% |
Free cash flow | 90 | 95 | 518 | 427 | n.m. |
Dividends paid to non-controlling interests | (108) | (2) | - | 108 | n.m. |
Dividends paid to shareholders | - | - | - | - | n.m. |
Net debt | 1,496 | 2,066 | 1,552 | 56 | 4% |
Net debt to RCA Ebitda1 | 0.7x | 1.5x | 1.1x | 0.4x | n.m. |
1 Ratio considers the LTM Ebitda RCA (€1,601 m on 31 March 2021), which includes the adjustment for the impact from the application of IFRS 16 (€186 m on 31 March 2021).
GGND stake sale conclusionIn October 2020, Galp agreed with Allianz the sale of 75.01% of GGND for a total consideration of €368 m. Completion of the deal occurred in 1Q21 and Galp receiving €343 m, with the remaining €25 m expected to be received in 2Q21.
Conference call detailsWebcast
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+351 308 800 848
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+44 (0) 207 192 8000 or +44 (0) 800 376 7922 (UK toll free)
Conference ID: 2077431
Galp| Investor Relations Team
Contactos:
Tel:+351 21 724 08 66
Website:www.galp.com
Email:investor.relations@galp.com
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Galp Energia SGPS SA published this content on 26 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2021 05:41:04 UTC.