Africa Oil & Gas: Galp output, profits up in 1Q; No Coral FLNG New

Portuguese independent Galp reported net income of €134mn ($146mn) in 1Q2017, contrasting with a loss of €58mn in the year-ago quarter. Its net production was 56% higher year on year at 88,000 barrels of oil equivalent (boe)/d, of which 87% was oil.

Pre-tax earnings (Ebitda) for its upstream division were €204mn, up €155mn year on year, bolstered by increased production and higher prices. Galp’s average realised oil and gas price increased 73% year on year to $45.40/boe.

However Galp’s statement had nothing about when a final investment decision for the $8bn Eni-led Coral floating LNG scheme offshore Mozambique will be taken; last week the US major ExxonMobil merely said the project was ‘

Galp‘s net production is chiefly in Brazil and Angola.

Galp had said that its 1Q natural gas sales to direct clients were 28% higher year on year at 1.15bn m³, while traded volumes (pipeline gas and LNG) declined by 11% to 0.857bn m³, for a total Galp 1Q2017 gas sales figure of 2bn m³, up 8%. Its electricity sales to the grid increased by 140 GWh year on year to 496 GWh in 1Q2017, helped by a better performance from Galp refineries’ cogeneration units and a cold start to this year.

Galp’s 1Q 2017 refining margin of $5.1/b was $1 higher year on year.