Galp cut investment by 15% by 2020 – publico

                 

                         
                     

                 

 
 

Galp said on Tuesday its investment strategy for the coming years. Similar to what had already happened last year, the company re-cut the average annual investment, which should be between a thousand and 1.2 billion annually between 2016 and 2020 (approximately five billion), less 15% against the established in the previous goals.

For 2016 “the year in which the investment in Brazil and Angola reach the highest value,” the investment should be between 1.1 and 1.3 billion.

this year, the company estimates that earnings before interest, taxes, depreciation and amortization (EBITDA) fell compared to the results achieved in 2015 of 1.5 billion euros. This year, the result should be between 1.2 billion and 1.3 billion euros, said Galp in the presentation of Investor Day, held on Tuesday in London

Looking for the period between 2015-2020, the expectation of Galp is an average annual growth of 15% EBITDA. In these accounts, Galp expects the oil price to 35 US dollars in 2016, with a “gradual increase” up to $ 70 per barrel in 2020. Still, the company points out, in the presentation, that their production projects are profitable from $ 30 per barrel.

Galp has at times seven production units in operation, two in Angola and five in Brazil, it is expected that an octave is already operating this year in Brazil. But in 2020, the number of projects will reach 16.

In 2015, the company doubled production and was already producing 59,000 barrels / day at the end of the year, keeping the project schedules in Brazil, the level of 80,000 barrels will already be reached in 2017, recently secured the chief executive of Galp, Carlos Gomes da Silva.

in the presentation on Tuesday, the company says it hopes that by 2020 the rate of oil and gas production growth is between 25% and 30%. “I do not think there are stories of growth in such interesting industry as Galp,” said this morning the president of the company, before about one hundred analysts, investors and international fund managers in London.

Referring to 2016 “as another challenging year for Galp” a drop in the context of oil prices, Gomes da Silva stressed that the fact that the company is an integrated energy operator (is present in exploration and production as well as refining and fuel distribution) continues to ensure Galp “resilience” to overcome the challenges of the industry.

Galp will propose to shareholders at the general meeting April the distribution of a 41 cent dividend for the exercise of 2015.O dividend paid last year, referring to 2014, was 35 cents.

PUBLIC traveled at the invitation of Galp