Portugal's Galp Energia on Monday reported its second quarter adjusted net profit jumped 16% and beat expectations as higher oil price and lower cost of production offset lower production and stable refining margin.
It booked an adjusted net profit of 299 million euros ($325.34 million), more than the 236 million euros expected by 18 analysts polled by the company.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 7% to 849 million euros, also above the 821 million euro consensus.
Chief Executive Filipe Silva said in a statement that Galp "continued to deliver a robust performance during the second quarter of 2024, despite the still volatile commodity price environment".
Galp's share of oil and gas production from upstream projects in Brazil fell 5% on the year to 106,000 barrels of oil equivalent per day (boepd).
Following the agreement in May to sell its 10% stake in a natural gas project in Mozambique, Galp did not book any production from the African country in the second quarter. A year ago, it produced 5,000 barrels there.
However, it said that Brent oil prices rose 9% to an average of $85 a barrel in the quarter from $78.1 a year earlier.
Galp said its refining margin stood at $7.7 in the second quarter, the same as a year ago, but 36% lower than the $12 in the previous three months.
($1 = 0.9190 euros)
(Reuters - Reporting by Sergio Goncalves; editing by Inti Landauro and Louise Heavens)
