Galp Energia : Internacional growth drives results

The increase in oil and natural gas production in Brazil, together with good performance from downstream operations in Galp's main markets allowed the company to close the financial year with 25% growth in net income, benefiting from improvements in almost all business areas.
Oil and gas production in Brazil's large pre-salt reserves was once again the main driver of growth, with the installation of three floating production storage and offloading (FPSO) units in the past two years generating a 38% increase in production.
Galp closed the year with a total average daily production of 93.4 thousand barrels of oil and natural gas, and achieved the 100-thousand-barrel milestone in the last quarter of 2017. Recovery of the average price per barrel had a multiplier effect on income generated from increased output.
Refining & Distribution also contributed to results by increasing the volume of raw materials processed and sales, thanks to healthier European refining margins.
The Gas & Power business unit faced adverse economic conditions, especially when it came to capturing liquefied natural gas trading opportunities on the international markets. Falling sales in this segment were partially offset by an increase in sales to direct customers, which improved both in industry and for electricity production. Natural gas was determinant in replacing hydroelectric power generation which was limited by lack of rain.
Investment held steady at close to EUR 1 billion, of which 88% was allocated to E&P operations, chiefly in Brazil where, in addition to ongoing projects, Galp boosted its presence by acquiring the rights to a new Pre-Salt area following a tender. In addition to Brazil, investments made in Angola are also of note, where two FPSO units are to be installed. The Coral South Project, in Mozambique, also kicked-off at the beginning of this year, the only LNG project to be approved in 2017 worldwide.
Asset quality, focus on operational performance and rigour in implementing investments allowed Galp to maintain a debt to EBITDA ratio of approximately 1x during the strong expansion of its business. The company maintains its commitment to a tight financial discipline.

For more detailed information, please view the official financial statements for Q4 2017 which can be found on Galp's Investor Relations Management web page.

Galp is a publicly traded Portuguese-based energy company with an international presence. It operates in all stages of the energy sector's value chain, from prospecting for and extracting offshore oil and natural gas, to developing energy efficient and environmentally sustainable solutions for its customers - be they big industries looking to improve their competitiveness or individual consumers wanting more flexible solutions for their homes and mobility needs. It also contributes to the economic development of the eleven countries in which it operates and to the social progress of surrounding communities. Galp employs 6,750 people.