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Galp said its adjusted net profit rose to 155 million euros ($162.77 million), from 26 million a year earlier, although below the 185 million euros expected by 19 analysts polled by the company.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased 74% to 869 million euros, in line with the average of the forecasts, it said in a statement.
Oil companies have been benefiting from global crude prices surging to their highest in nearly 14 years during the first quarter as sanctions on major oil exporter Russia over its invasion of Ukraine fueled concerns about tight supplies.
The company said it “successfully captured the stronger macro conditions, namely in the upstream and industrial segments”, despite the high commodity price volatility putting pressure on the remaining downstream activities.
Galp’s upstream adjusted EBITDA rose 83% to 803 million euros, reflecting a 67% rise in Brent prices LCOc1> to $102.2 in the quarter, while its share of oil and gas production from projects in which it has a stake, mainly Brazil, rose 5% to 129,500 barrels of oil equivalent per day.
Its refining margin also rose to $6.8 a barrel in the January-March period, from $1.9 in the same period last year, when the country was heavily affected by COVID-19 restrictions, and $5.50 in the previous three months, Galp said.
Galp, which also runs renewable energy plants, said sales of refined products to direct clients rose 25% to 1.7 million tonnes as demand recovered compared to a year ago, but declined 10% versus the previous three months.
Net profit and EBITDA were adjusted to reflect changes in the company’s crude stock.
($1 = 0.9523 euros)
