Galp Energia's 3rd quarter 2011 results and strategy execution update

Galp Energia releases today the 3rd quarter 2011 results and the strategy
execution update, with the following highlights:

  * Net profit in 3Q11 reached €61 Mln, 34% down yoy;

  * Sines refinery steady production post-upgrade in 2Q12;

  * Lula/Cernambi development ahead of expectations;

  * Drilling activity focused on high potential projects;

  * Ensuring a solid and trustable capital structure.



SUMMARY OF RESULTS - NINE MONTHS AND THIRD QUARTER OF 2011

In  the first nine months of  2011, Galp Energia's replacement cost adjusted net
profit of €172 million was €94 million lower than a year earlier as the Refining
&  Marketing business segment  underperformed. Net profit  of €61 million in the
third quarter 2011 was €32 million lower than a year earlier.

§  Net entitlement production of crude oil in the first nine months of 2011
amounted to 11.9 kbopd, of which 26% came from Brazil; in the third quarter, net
entitlement production rose 28% yoy;

§  Galp Energia achieved a refining margin of Usd 0.8/bbl in the first nine
months of 2011; in the third quarter of the year, the refining margin was Usd
0.9/bbl, which negatively reflected softer margins in international markets;

§  Although the marketing of oil products was negatively affected by the adverse
economic environment in the Iberian Peninsula, volumes sold of oil products
stabilised in the third quarter of 2011;

§  Natural gas volumes sold rose 10% yoy in the first nine months to 3,951
million cubic metres, driven by Madrileña Gas sales and increase in trading
volumes; in the third quarter of 2011, volumes sold fell 11% mainly due to the
decrease of electrical segment volumes;

§  RCA EBIT fell 27% yoy in the first nine months of 2011 to €285 million; in
the third quarter of 2011, RCA EBIT fell 19% yoy to €111 million;

§  RCA net profit of €172 million in the first nine months of 2011 equated to
€0.21 per share, 35% of which was achieved in the third quarter of 2011;

§  In the first nine months of 2011, around 53% of total capital expenditure of
€808 million was channelled into the refinery upgrade project.



To read the complete version of the report and presentation go to:


http://www.galpenergia.com/EN/Investidor/Relatorios-e-resultados/resultados-
trimestrais/Paginas/Resultados-do-ultimo-trimestre.aspx


Conference Call for results presentation will be held today October 28 at 2:00
pm UK time (3:00 pm CET). The Conference Call details are as follows:

UK: +44 (0) 207 750 99 08
Portugal: 707 785 757



Galp Energia. SGPS, S.A., Public Company
Investor Relations and Corporate Communication Division

Rua Tomás da Fonseca, Torre A
1600-209 Lisbon, Portugal
Tel: +351 217 240 866
Fax: +351 217 242 965
Email:[email protected]
www.galpenergia.com






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Source: Galp Energia. SGPS, S.A. via Thomson Reuters ONE

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