Galp CEO is excited about 2026, as Brazil's oil prices will insulate the company from Gulf.

Galp, the Portuguese oil company, was optimistic about its performance in 2026 on Monday after it reported a 41% increase in its first-quarter core profit.

Galp shares rose 2% on Monday morning after the company reported earnings before interest tax, depreciation, and amortization (EBITDA), which were 943 million euro ($1.1 billion). This was ahead of an 890 million euro consensus estimate provided by the company.

In a quarterly results report, Maria Joao Carioca, co-CEO of Galp, said that 2026 was shaping up to be a 'fantastic year.' The net profit grew by 41% to 272 millions euros. Galp began the year on a strong footing, despite the increased volatility of the market and the global uncertainty. This was supported by its assets, which were largely based in Brazil.

Galp's earnings from crude oil produced in rich offshore Brazilian fields rose by 78%, to 685 millions euros. Galp's oil and gas production in Brazil from its stakes rose by 23%, to 129,000 barrels a day. This was boosted by the October launch of a vessel for production, storage, and offloading at the Bacalhau Field in the Santos Basin.

Brent crude prices rose to an average $81.1 per barrel during the first quarter of this year, up from $75.7 in last year's period. Galp announced that it is stepping up its preparations for the three-well drilling campaign to assess the Mopane discovery offshore Namibia. The first well will be spudded later this year, which is the first step of drilling a well.

TotalEnergies, a French company, is in the process acquiring a stake of 40% from Galp in Petroleum Exploration Licence 83, also known as PEL 83, offshore?Namibia. This licence includes the Mopane _field. TotalEnergies will assume operatorship.

The adjusted EBITDA of Galp's refinery, trading and oil product supply unit dropped 9% to 198 millions euros.

(source: Reuters)