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Retail

Portugal's Galp Halves Dividend After Q4 Profit Slumps 98%

Portuguese energy and forecourt business Galp Energia cut its dividend payout by half on Monday after posting a 98% plunge in fourth-quarter net profit as the coronavirus pandemic hammered refining margins and output fell.

The company said it would propose a dividend of €0.35 per share for 2020, halving the €0.70 per share paid the previous year.

"The dividend cut reflects the impact from unexpected and unprecedented market conditions", Galp said in a statement, adding that it would target a 2021 payout of €0.50 per share.

Adjusted net profit fell to €3 million from €157 a year earlier, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 37% to €410 million.

For the full year, Galp swung to a loss of €42 million from a profit of €560 million in 2019, while EBITDA fell 34% to €1.57 billion.

The company said that due to the pandemic, it is incorporating "additional layers of prudency given the uncertain macro circumstances", and expects EBITDA of between €1.6 billion and €1.8 billion in 2021.

Net profit and EBITDA has been adjusted to reflect changes in the company's stocks of crude.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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