Galp Raises 2024 Earnings Forecast and Eyes Strategic Partner for 10 Billion-Barrel Namibia Oil Discovery
Portuguese energy group Galp Energia has raised its full-year profit forecast after reporting better-than-expected second-quarter results and revealed plans to bring in a development partner for its significant offshore oil discovery in Namibia.
The company now expects adjusted EBITDA to exceed €2.7 billion in 2024, up from its previous estimate of €2.5 billion.
The revision comes on the back of strong performance in Galp’s gas trading segment, particularly due to liquefied natural gas (LNG) deliveries from Venture Global’s Calcasieu Pass facility in Louisiana.
Under a long-term take-or-pay contract signed in 2018, Galp is set to receive 1 million metric tons of LNG annually from the U.S.-based exporter, helping fuel its earnings growth.
In the second quarter, Galp reported €840 million in adjusted EBITDA, surpassing analysts’ expectations of €724 million.
Adjusted net profit rose 25% to €373 million, buoyed by lower tax expenses and higher oil production, which helped offset weaker crude prices and shrinking refining margins.
While Brazil remains the cornerstone of Galp’s upstream portfolio, the company is increasingly focused on the Mopane discovery in Namibia, which is estimated to hold over 10 billion barrels of oil and gas equivalent.
Galp currently holds an 80% stake in the Mopane field and is actively seeking a qualified operator to acquire a portion of that stake and take the lead in developing the asset.
Co-CEO Maria João Carioca confirmed that the company has received multiple non-binding offers and will enter bilateral talks to evaluate potential partners and their proposed development plans.
She expressed optimism about forming a strong partnership by the end of the year, highlighting that several credible players are actively engaged in discussions.
The Mopane project could represent a transformational asset for Galp, expanding its footprint in one of the world’s most promising emerging offshore basins, while allowing it to share development risks and capitalize on strategic collaboration.
