Galp’s Core Profit Surges 41% on Higher Oil Output

(Credit: Galp)

Portugal's Galp Energia reported a 41% jump in first-quarter adjusted core profit on Monday, beating expectations on higher oil output in Brazil and stronger crude prices.

The energy firm reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 943 million euros ($1.11 billion), surpassing the company-provided consensus of 890 million euros.

Earnings from extracting crude from rich offshore Brazilian fields, its main business, rose 78% to 685 million euros in the quarter, "benefiting from the combined effect of increased oil output and a higher average Brent price," it said in a statement.

Galp said its share of oil and gas production from its projects in Brazil rose 23% to 129,000 barrels per day in the first quarter, supported by the start-up of a floating production, storage and offloading vessel at the Bacalhau field in the Santos Basin in mid-October.

It said Brent crude prices rose to an average of $81.1 per barrel in the quarter from $75.7 last year.

Galp's adjusted net profit rose also 41% to 272 million euros in the quarter, in line with estimates.

($1 = 0.8529 euros)

(Reuters - Reporting by Sergio Goncalves; Editing by Louise Heavens)