Galp reduces investment to 1.2 billion by 2020 – iOnline

Galp Energia will reduce its investment between 2016 and 2020. The average annual investment should be around EUR 1.2 million, a decrease of 15% compared to previous targets. In 2016, the year in which the investment in Brazil and Angola reach the highest value, capex is expected to be between 1.1 billion and 1.3 billion this year. The information was advanced by the oil under the Capital Markets Day in 2016.

 
 

“The great pillars of today disclosed strategy in London consolidate the profile of Galp, as an integrated energy company, through the development of its portfolio of world-class projects, and creating additional value in its downstream and gas business “says the company in a statement.

 
 

To go to enconrtro this strategy, the area of ​​exploration / production will absorb about 85% of the planned investment for the coming years.

 
 

But the pace of growth in production working oil interest and gas remains in relation to the targets set in the previous plan, with an average annual growth rate (CAGR) between 25% and 30% for the period 2015 -2020. “This growth is sustained by the projects in operation or have sanctioned”, he says.

 
 

In the area of ​​refining / distribution priorities involve increasing energy and process efficiency, as well as the optimization of costs and capital employed in order to sustain cash flow generation. “The continued integration of refining and distribution activities and growth in new markets are also considered important,” he said too.

 
 

In the gas / power, Galp will continue to work to diversify their sources of supply and to increase commercial activity in the Iberian Peninsula and other international markets.

 
 

In financial terms, the prospects point to an average annual growth rate (CAGR) of EBITDA of about 15% between 2015 and 2020, assuming a Brent barrel from 35 dollars in 2016 and a gradual increase up to $ 70 per barrel in 2020. it is expected that the 2016 EBITDA will be between 1.2 billion and 1.3 billion euros.

 
 

The dividend distribution proposal for the fiscal year 2015 is 0.41 euros per share, according to the dividend policy in place that provides for an annual increase of 20% by 2016. From 2017, the business plan assumes a stable dividend of 0.50 euros per share.