Galp Energia reported a net profit of 155 million euros in the first quarter of 2021. The numbers, sent this morning, before the market opened, to the Portuguese Securities Market Commission (CMVM), reflect the escalation that oil in world markets, accentuated with the military invasion of Ukraine.

According to the report cited by the newspaper Negócios, profits are slightly above those recorded in the previous quarter (130 million), but show a significant rise over the same period last year, when the country was in lockdown due to the covid-19 pandemic (26 million euros).

Earnings before interest, taxes, depreciation and amortization (EBITDA), meanwhile, rose 741TP2Q year-on-year to €869 million, with the upstram area underpinning most of the results, with EBITDA of €803 million, "reflecting higher production and higher oil and gas realizations, supported by improved oil trading conditions and new gas participation contracts," the national oil company indicates.

The commercial area, where the gasoline business is included, recorded an EBITDA of 56 million in the first quarter, 19% lower year-on-year, "despite the increase in oil volumes sold in the period, pressured by the price environment in the Iberian Peninsula, particularly in gas and electricity activities. Additionally, as of this quarter, the commercial segment includes the reallocation of growth platforms from the new business division (decentralized energy management and mobility solutions)," explains the company led by Andy Brown.

Still, the figures fall short of analysts' estimates, gathered by Bloomberg, which pointed to profits of 204 million euros and an EBITDA of 880.5 million.

Galp also indicates that earnings before interest, taxes, depreciation and amortization for the industrial and energy management area "was only two million euros, as the strong industrial performance was offset by a delay in price formulas for the supply of oil products." For the renewable energy sector no EBITDA was presented, as the operations are not yet consolidated.

In the document sent to the regulator, the energy company indicated that it does not plan to change the projections presented in February, which point to an EBITDA in 2022 of 2.7 billion euros and a net capex of around one billion, "despite the macro prospects for this year being extremely volatile.

Galp also recorded an impairment of 120 million euros, related to exploration and evaluation assets in Brazil. As for dividends, the company reaffirms for 2022 the expected distribution of the base dividend of 0.52 euros per share.

In a specific note related to the military invasion of Ukraine, the national oil company indicates that it has severed all relations with Russia and has further outlined strategies to support Ukrainians.