Galp Energia released the 1st quarter 2013 results with the following highlights:
Ongoing exploration campaign, namely in Potiguar and in Namibia, underexplored areas where drilling commenced in the first quarter and which results are expected until the end of June. In the second quarter, the exploration schedule comprises, among others, the start of drilling at Agulha-1 (formerly known as K Bulge), in Mozambique, and at Bracuhy, in the block BM-S-24 in pre-salt Santos basin;
Increased confidence on the Lula development, both on time and on cost, with two additional FPSO chartered during the quarter mitigating execution risk and reassuring that production growth will be delivered as planned. Pursuant to this operation, the consortium for the development of block BM-S-11, in the pre-salt Santos basin, has a total of 12 contracted FPSO to be delivered until 2017, ten of which are to be allocated to the Lula/Iracema field;
Second Lula FPSO on location and ready to start production by the beginning of June, having succeeded in all standard safety tests in Brazilian waters. This FPSO, with a daily capacity to produce 120 kbbl of oil and 5 mm3 of natural gas, will contribute to relevant production growth already during the 2H 2013;
Hydrocracker at the Sines refinery operating at full capacity, with full margin capture expected in the second quarter of the year. Margin capture during the first quarter was impacted by the ramp-up and stabilisation processes of the hydrocracking complex;
Net profit in the first quarter of 2013 reached €75 m, a 51% increase year-on-year from the positive contribution of all business segments. The improved performance of the refining business and the stronger LNG trading activity in the period were the main drivers behind this increase in results;
In the second quarter of 2013, working interest production is expected at c.22 kboepd as the FPSO Cidade de Angra dos Reis undergoes maintenance in the period. On the other hand, the Refining & Marketing business will benefit from the steady and full operations of the hydrocracking complex, within the refining upgrade context, although it should continue to be impacted by lower demand in the Iberian Peninsula. In the Gas & Power business, Galp Energia will continue to leverage its LNG trading activity on international markets.
[mappress] LNG World News Staff, April 29, 2013