Galp: EBITDA of €1.5 billion in third quarter, end of discussions with Moeve
Galp's third quarter of 2026 unfolded in an environment of high and volatile petroleum product prices, with rising crack margins on middle distillates and persistent disruptions to global energy supply chains. In this context, the group's EBITDA reached approximately €1.5 billion for the quarter and operating cash flow €1.2 billion. This cash generation made it possible to maintain net debt stable at €1.4 billion, despite the acquisition of a wind portfolio of €420 million. On the same day, the Portuguese group announced that it would not pursue negotiations aimed at bringing its downstream activities closer to Moeve. Its refining and distribution activities therefore remain autonomous.
Upstream and refining drive the bulk of €1.5 billion EBITDA
Upstream activity generated EBITDA of €708 million for the quarter. Production averaged 131,000 barrels per day, up from the previous quarter: the ramp-up of the Brazilian Bacalhau field, which now has four producing wells connected, more than offset the impact of larger scheduled maintenance shutdowns. During the half-yearly publication on July 27, 2026, the group had already highlighted this ramp-up, with production up 17%. The Industrial & Midstream division saw EBITDA reach €639 million. The Sines refinery operated at near-maximum availability and captured the high level of international crack margins, particularly for diesel and kerosene. The group's trading teams also secured all of Portugal's kerosene import requirements for the remainder of the year. Commercial activity recorded EBITDA of €147 million, primarily driven by business sales in the Iberian peninsula, notably in Spain. Renewables contributed €48 million, with energy volumes sold up 42% year-on-year, of which 19% from wind sources.
Net debt stable at €1.4 billion despite wind acquisition
Operating cash flow of €1.2 billion absorbed both the €420 million wind acquisition and an increase in working capital requirements linked to rising commodity prices. The net debt to EBITDA ratio was brought down to 0.35 times. The quarter also contains unfavorable elements, detailed by management. Upstream, the group reported high freight costs and lower crude premiums, against a backdrop of weaker Asian demand. In Midstream, the contribution again reflects accounting effects linked to the sharp rise in product prices. In Renewables, the contribution includes a full quarter of the first wind portfolio acquired in the second quarter and the consolidation of the second as of August. The portfolio is operated under market conditions and benefits from the recovery in electricity prices in Iberia, whereas during the July 27, 2026 publication, management cited the decline in these prices among the factors weighing on the division.
Annual EBITDA expected at around €5 billion, versus €4 billion previously
Incorporating this quarter and updated macroeconomic assumptions for the end of the fiscal year, Galp has once again raised its annual forecasts. The group's EBITDA is now expected at around €5 billion, versus €4 billion previously, and operating cash flow at nearly €3.9 billion. According to analyst consensus surveyed, the stock is valued at approximately 8.2 times expected earnings for the current fiscal year. On the Moeve matter, management indicated that its conviction regarding the strategic logic of the project remained unchanged, but that the parties had not found sufficient alignment to establish a sustainable and value-creating partnership, with capital discipline being presented as non-negotiable.
The group clarified that it continues to consider strategic partnerships as a possible avenue for long-term value creation.
Upstream, Galp continued preparatory work for the next exploration and appraisal campaign on Mopane, in Namibia, with an initial well targeted shortly. In Brazil, the group was awarded the Rodocrosita block, neighboring Bacalhau. The central element of the publication remains the increase in the annual EBITDA target, raised to around €5 billion.
