Portugal’s Galp expects flat 2018 earnings, plans to splash about 1 billion euros

Portuguese oil and gas company Galp Energia, the owner of a 10 percent stake in Eni’ Coral South FLNG project in Mozambique, said Tuesday it expects almost flat pre-tax earnings this year after a 32 percent increase in 2017.

The company expects earnings before interest, taxes, depreciation and amortization (EBITDA) of 1.8 billion-1.9 billion euros this year, compared as last year’s 1.87 billion euros.

Galp estimates capital expenditure to be in range between 1 billion euros and 1.1 billion euros this year and at around 1 billion euros on average per year until 2020.

Until 2020, exploration and production will continue to account for approximately 70 percent of the company’s total investment.

Half that amount will go to Brazil, with another third allocated to Mozambique, following the final investment decision of the LNG project in the Rovuma basin, the company said.

In Mozambique, Eni and its Area 4 partners are building a floating liquefaction and storage unit to be installed in the Coral South area, the first unit to develop the discoveries in the Rovuma basin. The floating LNG plant will have a capacity of 3.4 mtpa.

The partners beside Eni and Galp include ExxonMobil, CNODC, ENH and Kogas.

Galp says this development will be a key project in positioning the company in the transition to a more sustainable economy, bolstering the importance of natural gas in its asset portfolio.

LNG World News Staff