Galp Reaches Agreement to Sell 22.5% Stake in GGND

Galp Energia has reached an agreement with a consortium led by Marubeni to sell a 22.5 percent stake in the share capital of Galp Gás Natural Distribuição, S.A. (GGND), for $153 million (EUR 138 million).

Prior to the completion of the transaction, GGND will raise stand-alone funding to reimburse existing shareholder loans of $631 million (EUR 568 million), leading to total cash proceeds to Galp of around $777 million (EUR 700 million).

The group’s Ebitda was down 25 percent year-on-year in the second quarter of 2016, on a replacement cost adjusted (RCA) basis, to $368 million (EUR 337 million). This was mainly due to a “lower contribution” from the Refining & Marketing (R&M) and Exploration & Production (E&P) business segments, according to a company statement, which were impacted, respectively, by the “decrease of the refining margins” and “the lower prices of oil and natural gas on the international markets”.

During the first half of 2016 working interest production increased 30 percent YoY to 55,500 barrels of oil equivalent per day, which was primarily due to the start-up of units #4 and #5 and increased production at FPSO #3 in Brazil. Net entitlement production increased 33 percent YoY to 53,000 boepd.

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