Galp Produces Solid Results for 2Q 2015

Portugal's largest energy firm Galp Energia produced "another solid upstream result", according to analysts who follow the company, after it reported its performance for the second quarter of 2015.

Galp's working interest production increased to 43,800 barrels of oil equivalent per day during 2Q 2015, compared to 41,500 boepd in 1Q 2015 and 25,700 boepd in 2Q 2014, thanks to an increase in production in Brazil.

Galp said that during the second quarter, development activities proceeded on the Lula/Iracema fields in Brazil. The firm highlighted the production growth in the Iracema South area, where FPSO Cidade de Mangaratiba reached an average production of 95,000 bopd with only three producer wells. This month, a fourth producer well has been connected with the FPSO reaching 130,000 bopd.

Galp also noted that earlier this month the FPSO Cidade de Itaguai arrived at the Iracema North area, where production is about to start.

Commenting on the results analysts at investment bank Jefferies noted that Galp's outlook statement "reads well" with 2015 average working-interest production expected to be 43,000 boepd compared to the bank's own estimate for 2015 of 41,000 boepd.

Jefferies said that the financial results – which included adjusted net income of EUR 189 million ($210 million) – looked "robust" and included "another solid upstream result". The investment bank also noted that Galp had a stronger-than-expected performance from its refining operations.


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