Portugal’s Galp Raises Outlook After 45% Profit Jump

Portuguese energy company Galp Energia posted a 45% jump in second-quarter adjusted net profit on Monday, boosted by higher oil output in Brazil and stronger crude prices and refining margins brought on by Iran war supply disruptions.

The company raised its earnings guidance for the year, and it said the board of directors will propose a 10% increase in the 2026 dividend to €0.70 per share at next year's annual meeting.

Galp said its adjusted net income rose to €540 million ($616 million) in the April-June period from €373 million a year ago, exceeding the €494 million consensus provided by the company.

With production concentrated in Brazil's prolific offshore fields, Galp has been largely insulated from disruptions to oil flows through the Strait of Hormuz while reaping the benefits from stronger oil prices and refining margins.

Co-CEO Maria Joao Carioca said in a statement that "the results reflected the quality of Galp's assets and its teams' ability to execute even in a highly volatile environment."

She said Galp would maintain "strong financial discipline" while continuing to invest to strengthen its competitiveness and growth.

Earnings Boosted by Brazil Crude Production

Adjusted earnings before interest, taxes, depreciation and amortisation