Galp Energia says it invested over N$7.2 billion towards upstream projects, with a focus on developments in the Brazilian pre-salt, Portugal, and an exploration campaign in Namibia during 2023.
The group’s Chief Executive Officer Filipe Silva said last year, net capex totalled €382.2 million (N$7.8 billion), with investments mostly directed towards upstream projects under development in the Brazilian pre-salt and the exploration campaign in Namibia.
He added that the investment included the start of construction of the advanced biofuels plant and the 100MW electrolyser unit in Sines.
“Capex, not considering divestments, totalled €1,052 million (N$21.5 billion) in 2023. Upstream accounted for 53% of total investments, whilst the downstream activities represented 29% and renewables and new businesses 13%,” he said.
This comes after drilling and logging activities in the first exploration well, Mopane-1X, confirmed the discovery of two significant columns of light oil in reservoir-bearing sands of high quality in 2024.
“The rig was relocated to the second exploration well location, Mopane-2X, to evaluate the extent of the Mopane prospects, after which a Drill Stem Test (DST) is expected to be performed in Mopane-1X,” Silva said.
Thus, he noted that this has had no impact on the group’s financial position, income statement, or cash flow statement as at 31 December 2023.
For 2023, Galp’s replacement cost-adjusted Ebitda was €3,558 million (N$72.8 billion), while operating cash flow was €2,269 million (N$46.5 billion), reflecting a robust operating performance across all business units.
The CEO noted that economic capex amounted to €1,052 million (N$21.5 billion), mostly directed towards Upstream’s growth, downstream transformation, and renewables capacity construction.
“Investments in Portugal represented 1/3 of total spending, mostly allocated to the FID of two world-class projects in Sines, namely 100MW electrolysers for green hydrogen and an advanced biofuels unit (HVO/SAF), growth in electric mobility and modernisation of the retail network,” he said.
Meanwhile, net capital expenditures totalled €859 million (N$17.6 billion), considering various inflows while free cash flow reached €1,373 million (N$28.1 billion), covering dividends and share buybacks.
The company reduced net debt to €1.4 billion (N$28.7 billion), reinforcing its financial position.
Galp’s Board proposed a 4% dividend increase to €0.54 per share (N$11.1) in 2024, alongside a €350 million (N$7.2 billion) share repurchase programme, reflecting the company’s commitment to growth and value.
Galp operates Petroleum Exploration License (PEL) 83 with an 80% interest, while the National Petroleum Corporation (NAMCOR) holds 10%, and Custos Energy, half-owned by Sintana, has a 10% stake.
