Galp Energia SGPS (GALP.LB) on Monday said that its third-quarter net profit rose 80% on year, due to higher oil and natural gas prices in Europe and improved refining margins.
Net profit in the period was 163 million euros ($189.3 million) compared with EUR91 million a year earlier. Sales were 12% higher, reaching EUR3.75 billion.
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The Portuguese company said that it benefited from the economic environment in Iberia as higher demand helped oil products grow. Electrical consumption was also higher with the rise attributed to lower hydroelectric power generation.
The retail segment drove good results in the refining and marketing business in Iberia, it said, despite being negatively impacted by the increase in commodities prices and the time lag to adjust them.
The company said it was negatively affected by the dollar depreciating against the euro.
Galp cited the continuous development of the Lula and Iracema projects as supporting oil and gas production in Brazil.
On Friday, the company said that its Brazilian subsidiary Petrogal Brasil SA was awarded a 20% interest in the Carcara North area in the latest bidding round.
The consortium offered a profit oil share of 67.12%, Galp said. Additional commitments include the payment of a signature bonus of around $930 million gross--or approximately $186 million net--to Petrogal Brasil, and the drilling of an exploration well.
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(END) Dow Jones Newswires
October 30, 2017 03:52 ET (07:52 GMT)