Portuguese oil company Galp Energia said on Monday that its adjusted third-quarter profit rose 12% on year as refining margins almost doubled, offsetting a decline in crude output following the sale of its Angolan fields and lower oil prices.
It reported a net profit of 210 million euros ($221.84 million), less than the 241 million euros expected by 20 analysts polled by the company, but adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 35% to 1.06 billion euros, in line with estimates thanks to a 90% increase in refining margins.
The "robust contribution" from the mid-stream business offset lower oil prices and the sale of Angolan assets, the company said. As a result, the company lifted its EBITDA target for the full year to "more than 3.5 billion euros" up from a previous target of 3.2 billion euros.
The company booked 2.84 billion euros in EBITDA in the first nine months. It said that the rise in quarterly EBITDA reflected a "robust contribution" from the midstream business, with a 90% increase in refining margins, despite the disposal of Angolan upstream assets and a less favorable oil price environment.
(Reuters - Reporting by Sergio Goncalves; editing by Inti Landauro and Louise Heavens)
