Energy Firm Galp's Profit More than Doubles, Beats Forecast
LISBON, Oct 27 (Reuters) – Portugal's Galp Energia posted on Monday a forecast-beating 112 percent rise in third-quarter adjusted net profit after a sharp increase in its refining margins and due to higher oil output that is poised to grow further.
Galp also said in a statement it expects its "working interest" share of production from projects in Brazil and Africa to rise to around 35,000 barrels of oil equivalent per day in the fourth quarter from 31,800 boepd in the third quarter and 25,300 boepd in the last quarter of 2013.
The increase will be mainly supported by the production platform FPSO 2 at Brazil's offshore Lula NE field that reached full capacity in September and contribution from FPSO 3 at the Iracema field that started working earlier this month.
Galp, which is still primarily a refiner, has stakes in various important projects in Brazil and plans to ramp up production over the coming years, expecting its net installed capacity to reach 350,000 boepd by 2020.
Galp netted 121 million euros ($154 million) in July-September. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose about 21 percent to 379 million euros. The results are adjusted to reflect changes in the company's stocks of crude.
Analysts polled by Reuters had forecast, on average, an adjusted net profit of 97 million euros and EBITDA of 342 million euros.
Galp's oil output rose almost 29 percent year on year in the third quarter, which also saw resumption of normal production at its Sines refinery after a maintenance outage in the previous quarter.
Following international benchmark trends amid falling oil prices, Galp's refining margin rose to $5.6 per barrel in the period from $1.7 a year ago. (1 US dollar = 0.7878 euro)
(Reporting by Andrei Khalip; editing by Susan Thomas)
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