Galp, a Portuguese company, sees its core profit decline further due to lower oil prices and margins

Galp Energia said that its adjusted 'full-year core profits fell 8%, to $3.57 billion. The company warned on Monday of a further decline in this year.

The company blamed weaker oil prices, a refinery shutdown and other factors for the decline in 2025. It said that it expected core profit to drop further in 2026 to at least 2,6 billion euros despite a projected?15% rise in oil production to 125,000-130,000 barges per day.

The company predicted?an average price of $60 per barrel Brent crude oil for this year. This is down from $69.10 in 2025. Refining margins are expected to fall to $5.50 from $7.10.

Maria Joao Carioca, co-CEO of the company, said it was difficult to give medium-term advice because the situation is volatile.

She said, "We're limiting our guidance until 2026. We will then update the market with new strategic guidelines as soon as we gain more visibility."

Galp shares increased 3.5% in line with other European gas and oil companies as the conflict escalates?in the Middle East.

The company reported a fourth-quarter adjusted core profit of 619 million Euros, which was slightly higher than analyst expectations.

The company's Brazilian upstream business saw a core profit of 430 million euro, down by 2% despite a 2% increase in production. This was due to lower crude oil prices.

Galp's sole refinery in Portugal was offline for 50 days in the fourth quarter due to maintenance. This limited the benefits of the refining margin, which rose from $5.20 per barrel a year ago to $6.90.

(source: Reuters)