The strong decline of oil prices throughout this year, the pair of drops in refining margins, undermining the net result of Galp Energia in about 80 million euros, has emphasized today the president of the oil company.
“The precipitous drop in the price of Brent oil and the fall of the refining margins had a huge impact” on the results of the first nine months of the year, Galp said Carlos Gomes da Silva, in a meeting with journalists in Lisbon.
The Company today presented the accounts for the period between January and September, with profit falling 26% year-on-year to 361 million euros.
Still, “the increase in production, particularly in Brazil, allowed us to limit the effects of the fall of Brent crude and refining margins,” said the leader of the Company, adding that, in parallel, “the focus on distribution activities mitigates the adverse effect of a fall in refining margins”.
“There is an improvement in the development of the activity, but the impact of the scenario [of the moment] led to the fall of the results,” underlined Gomes da Silva.
Still, the officer pointed out that “the conditions are with prospects to improve”, pointing to some seasonal effects, such as the hurricane season in the United States (US), that force the stopping of the oil refineries of the country, and hence leads to a rise in sales of Galp to the largest economy in the world, as well as the fact that at this time of year, the temperatures are starting to drop significantly in the northern hemisphere, there is a significant rise in the demand for diesel.
Galp answers extraordinary contribution of the energy sector
Galp Energia maintains its position of disagreement as to the payment of the extraordinary contribution over the energy sector, which has already motivated his appeal to Justice, and will not liquidate the funds envisaged in the State Budget for 2017.
“We will maintain our position. We disagree with this tax, because we believe that it violates the rules for the taxation of companies”, said the president of the oil company.
Thus, according to Gomes da Silva, the strategy of Galp passes by to provide warranty on this contribution, but does not settle it, as it has done since 2014, the first year that was impacted by this tax extraordinary, while waiting for a court decision on the matter.
“Is a fee that was supposed to be transient but, as shown in the State Budget for 2017 (OE2017), already goes to the fourth year of its existence,” said the manager.
“it Concerns us because it is one more year that we have to endure” this extraordinary contribution, strengthened Gomes da Silva.
Asked about the weight that this tax, that fee was 0.85% of the assets of the energy companies of portugal, has about the results of Galp, the officer pointed to a budget of around 25 million euros a year.
The Company is expected to contribute up to 2017 with € 50 million per year to lower the costs of the system.
Galp will have six new oil platforms
Galp Energia will have four more oil platforms in Brazil and two more platforms in Angola in activity until the end of 2018.
“In the next two years we will by so many units to work as in the last five years”, highlighted the responsible at a meeting with journalists in Lisbon, the purpose of the presentation of the accounts for the first nine months of the year, revealing that parts of these platforms are to be built in Brazil, South Korea and Thailand.
in Addition to the new platforms FPSO – used to extract the oil from the bottom of the sea -, the Company is also enhancing the capacity already installed, with the goal of reaching a production of 100 thousand barrels per day in 2017, pointing to the “solid execution of development projects” in Brazil and in Angola.