Portugal's Galp was upbeat about its 2026 performance on Monday after reporting a 41 per cent rise in first-quarter adjusted core profit, as higher Brazilian output and stronger crude oil prices shielded it from Middle East supply disruptions.
Galp shares were up two per cent in morning trading after it reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of €943 million ($1.1 billion) ahead of a company-provided consensus estimate of €890 million.
"2026 is shaping up to be an exciting year for Galp," co-CEO Maria Joao Carioca said in a results statement which said its net profit rose 41 per cent, to €272 million, in the quarter.
"Galp started the year on a solid footing, despite increased market volatility and global uncertainty, supported by the resilience of its assets", with oil production entirely based in Brazil, largely shielding it against the disruption of supply chains caused by the blockade of the Strait of Hormuz, she said.
Earnings on crude from rich offshore Brazilian fields, Galp's main business, rose 78 per cent to €685 million. Galp's share of oil and gas production from stakes in its projects in Brazil rose 23 per cent to 129,000 barrels per day, supported by the startup in October of a production, storage and offloading vessel at the Bacalhau field in the Santos Basin.
It said Brent crude prices rose to an average of $81.1 per barrel in the quarter, from $75.7 last year. Galp said it is stepping up preparations for a three-well appraisal drilling campaign at the offshore Mopane discovery in Namibia, with the first well due to be spudded, the first step in drilling a well, later this year.
France's TotalEnergies is in the process of acquiring a 40 per cent stake from Galp in Petroleum Exploration Licence 83 (PEL 83) offshore Namibia, which includes the Mopane field, and is set to assume operatorship.
Adjusted EBITDA at Galp's refining, trading and oil products supply unit fell nine per cent to €198 million.
(Reporting by Sergio Goncalves; Editing by Louise Heavens and Alexander Smith)
