Galp Energia’s investments in Namibia reached N$6 billion (€312 million) in 2024, primarily allocated to exploration and appraisal activities, according to the company’s fourth-quarter and full-year financial report.
The Portuguese energy firm reported a total net capital expenditure (capex) of €832 million for the year, bolstered by proceeds from divestments in Angolan upstream assets. Economic capex stood at €1.29 billion, with significant allocations to Namibian exploration, upstream developments in Brazil, and industrial low-carbon projects.
“Capex totalled €1.29 billion, with Upstream and Industrial accounting for 59% and 18% of total investments, respectively, whilst Commercial and Renewables businesses represented the remaining,” the report stated.
Galp’s upstream investments were concentrated on Brazilian pre-salt projects, including Bacalhau, Tupi, and Iracema, alongside Namibia’s exploration initiatives. Meanwhile, its Industrial & Midstream division focused on low-carbon projects, notably the hydrogen production facility at Portugal’s Sines industrial complex and the maintenance of refining and logistics assets.
The company also directed funds toward commercial operations, upgrading service stations, and expanding its electric vehicle charging network, while its renewables segment prioritized increasing solar energy capacity in Iberia.
In the fourth quarter, Galp maintained resilience despite a volatile macroeconomic environment, driven by strong performances in Upstream and Industrial operations. The firm also strengthened its financial position, reducing net debt to €1.2 billion from year-end 2023 levels.
“Investments in the period amounted to €500 million, mainly directed towards the execution of upstream projects, namely the Namibia appraisal campaign and Bacalhau, as well as Industrial low-carbon projects execution,” the report noted.
Galp’s RCA EBITDA for the quarter stood at €437 million, reflecting a year-on-year decline due to lower production, reduced realizations, and increased exploration costs in Brazil and Namibia. Operating cash flow (OCF) reached €393 million, while cash flow from operations (CFFO) amounted to €917 million, benefiting from a reduction in receivables and lower commodity prices.
“CFFO reached €917 million, including a material working capital release, mostly related to a reduction in receivables from sold cargoes and a lower commodities pricing environment, as well as €61 million from the reclassification to capex of the 20% carried interests in Namibia PEL 83,” Galp reported.
Galp’s upstream portfolio in Namibia consists of Petroleum Exploration Licence 83 (PEL 83). Galp holds an 80% stake in PEL 83, which covers an area of almost 10,000 square kilometres in the Orange Basin, located in the southern part of Namibian waters, close to the border with South Africa.
