Portugal's Galp sees core profit declining further on lower oil prices and margins (updated)

Galp Energia SGPS SA

02/03/2026 12:32

Recasts and adds detail throughout

By Sergio Goncalves

LISBON, March 2 (Reuters) - Galp Energia's GALP.LS adjusted full-year core profit fell 8% to 3.04 billion euros ($3.57 billion), the Portuguese oil and gas company said on Monday, warning that it expects a further decline this year.

The company cited weaker oil prices and a refinery outage for the 2025 drop and said it expects core profit to fall further to at least 2.6 billion euros in 2026 despite projecting a 15% increase in oil output to 125,000–130,000 barrels per day.

The company forecast an average of $60 per barrel for Brent crude oil this year, down from $69.10 in 2025, with refining margins expected to weaken to $5.50 a barrel from $7.10.

It was not clear whether those forecasts were made before the Israeli and U.S. attacks on Iran over the past few days, but Co-CEO Maria Joao Carioca said that the volatile situation made it difficult to provide medium-term guidance.

"We are limiting our guidance to 2026 and we'll be looking to better update the market on new strategic guidelines once we have more visibility," she said.

Galp shares rose 3.5%, in line with other European oil and gas companies as conflict escalates in the Middle East.

The company also reported adjusted fourth-quarter core profit down 10% at 619 million euros, slightly above analyst expectations of 604 million euros.

Its upstream Brazilian business registered core profit down 2% at 430 million euros despite a 2% rise in output, hit by lower crude prices.

Galp's only refinery in Portugal was offline for about 50 days of maintenance in the fourth quarter, limiting the benefit of a refining margin that rose to $6.90 a barrel from $5.20 a year earlier.

($1 = 0.8519 euros)

(Reporting by Sergio Goncalves
Editing by Charlie Devereux and David Goodman)

((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net/))