Portuguese independent oil and gas producer Galp Energia reported Monday that it improved its third-quarter operating profit at the EBITDA level by 8.6 percent to EUR 411 million ($452 million).
Galp's refining and marketing business was responsible for driving growth at the firm, producing a 69.8-percent increase in EBITDA to EUR 245 million ($270 million). Its exploration and production operation saw EBITDA decline by 32.2 percent to EUR 89 million ($98 million) during the quarter.
Average working-interest production for 3Q 2015 was 45,700 barrels of oil equivalent per day, which was an improvement of 43.7 percent over 3Q 2014. Oil sector analysts at investment bank Jefferies noted that there were few details on the firm's outlook in its third-quarter results but that a presentation accompanying these results showed current production as being in excess of 50,000 boepd.
Galp's capital spending during the third quarter, at EUR 256 million ($282 million), was down 18.4-percent on 3Q 2014 and also down on its 2Q 2015 capex of EUR 313 million ($344 million). Approximately 87 percent of this capex was spent on exploration and production activities.
Jefferies commented that "while long-term delivery risk in Brazil remains a consideration, near-term project delivery is continuing to surprise on the upside".
The investment bank also noted that FPSO No.4 on the BM-S-11 pre-salt block offshore Brazil (Iracema North) started production in late July with two producer wells and one gas-injector now in operation, while Galp has suggested that FPSO No.3 at Iracema South could be up to its 150,000 barrels per day capacity by the end of this year.
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