Investitng.com — Shares of Galp Energia (ELI:GALP) traded lower on Monday after it reported a 22% decrease in its adjusted core profit for the third quarter, primarily due to reduced oil production and a decline in refining margins.
However, the earnings surpassed analyst expectations for the period. The energy company posted adjusted EBITDA of €820 million ($885 million), exceeding the consensus estimate of €766 million.
Galp’s share of oil and gas output from its investments dropped 10% year-on-year to 112,000 barrels of oil equivalent per day, largely due to the sale of its 10% interest in the Area 4 project in Mozambique. When only considering its Brazilian assets, production decreased by 3% compared to the previous year, according to Galp.
CEO Filipe Silva said that the company achieved “another robust performance during this quarter, despite the challenging refining and commodities price environment.”
The average Brent crude price fell to $80.3 per barrel during the quarter, down from $86.7 a year earlier, while refining margins decreased sharply to $4.7 per barrel, compared to $14.6 in the same period last year.
Silva also said that Galp is well-positioned to continue expanding its low-carbon production initiatives while also working towards decarbonizing its refining operations.
The company’s adjusted net profit rose by 27% to €266 million for the quarter, surpassing the estimated €220 million, due to lower taxes.