Portugal's Galp Energia raised its 2018 pre-tax earnings estimate to €2.3 billion from a previous forecast of 1.8-1.9 billion on Monday, as a jump in oil prices and stronger output boosted its third-quarter results.
The forecourt operator's oil and gas output rose 10% in the third quarter from a year earlier to around 104,000 barrels of oil equivalent per day, but Galp's new projection for a full-year output increase of 15% came at the lower end of its previous forecast range of 15-20%.
International oil prices surged over 40% in the quarter from a year ago.
Income Gains
Third-quarter net income and EBITDA (earnings before interest, tax, depreciation and amortisation) rose 35% and 38% respectively, in line with market expectations, even as refining margin fell 21% and refinery throughput declined 7% due to scheduled maintenance.
Galp's refining margin of $5.8 per barrel was nevertheless well above the industry's benchmark of $3.2 in the quarter.
The rise in projected EBITDA came despite expectations of a "weaker refining environment in the fourth quarter".
The company, which is a relative newcomer in the world of big oil, plans to boost output to 150,000 barrels of oil equivalent per day by 2020.
Most of Galp's production growth will come from Brazil, where it has stakes in large offshore oil fields and is looking for further expansion opportunities.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
