← Back

Galp Energia: Galp's 2025 Earnings: A Strong Operational Performance

Galp's financial performance in 2025 was marked by a strong operational delivery, although the EPS came in lower than expected at €0.2273 compared to analyst estimates of €0.3278. Despite the EPS miss, the company's revenue growth is expected to continue, with analysts estimating a 5.2% growth in revenues for the next year. The company's operational performance was highlighted by its Brazil production reaching 111,000 barrels per day and the Bacalhau project achieving first oil with high productivities. As Maria Joao Carioca noted, "Galp's operations are Atlantic-centered, and they are monitoring the geopolitical situation, taking actions to reroute equity oil shipments."

GALP.LS

EUR 19.495

-0.26%

A-Score: 6.6/10

Publication date: March 2, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • 2025 Operational Performance Brazil production reached 111,000 barrels per day, with Bacalhau achieving first oil at high productivity.
  • 2026 Guidance Production target of 125,000–130,000 barrels/day (15% increase), EUR 1 billion organic CapEx, and EUR 0.64/share dividend with EUR 250M buyback.
  • Mopane FPSO Target Aiming for a 200,000-barrel-per-day FPSO, with development refining and drilling plans to maximize value.
  • Moeve Transaction Synergies Expected 10% combined synergies from the transaction, with a preliminary agreement anticipated by mid-2026.
  • Low-Carbon Projects 35% of 2026 CapEx allocated to low-carbon initiatives, including 60–65% committed for Sines green hydrogen and 15 TW LNG deliveries.

Operational Highlights

The company's operational performance was driven by its upstream assets, with production expected to increase by 15% to 125,000-130,000 barrels per day in 2026, driven by the ramp-up of the Bacalhau project. The company's refining margins are currently in double digits, and they expect to maintain a strong commercial performance. Galp is also making progress on its low-carbon projects, with 60-65% of CapEx already committed to the green hydrogen project in Sines.

Valuation and Returns

Galp's valuation metrics indicate a reasonable pricing, with a P/E Ratio of 14.79 and a P/B Ratio of 3.29. The company's EV/EBITDA ratio is 5.84, indicating a relatively low valuation compared to its earnings. The company's Return on Equity (ROE) is 21.47%, indicating a strong return on shareholders' equity. The dividend yield is 3.33%, providing a relatively attractive income stream for investors.

Growth Prospects

Galp's growth prospects are driven by its upstream projects, including the Bacalhau and Mopane developments. The company is also exploring opportunities in Namibia, where they retain 40% of the asset and are working with Total to develop it. The company's focus on the Atlantic Basin is expected to drive growth, with a partner providing a solid backing into the geography. Galp's inorganic CapEx is expected to be around €500 million, with a focus on upstream deals, although they may consider diversifying into gas in the future.

Dividend and Share Buyback

Galp maintains its distribution guidelines intact for 2026, with a €0.64 dividend per share and a €250 million share buyback to be executed throughout the year. This indicates a commitment to returning value to shareholders, while also investing in growth opportunities.

Galp Energia's A-Score