Portugal’s Galp quarterly profit up 62%, below market forecast

LISBON (Reuters) -Portugal’s Galp Energia reported on Friday a smaller-than-expected 62% rise in adjusted first-quarter profit as refining margins nearly tripled from a year ago, but crude production and oil prices dropped.

It netted 250 million euros ($276 million), below the 294 million euros expected on average by 21 analysts polled by the company, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which slipped 1% to 864 million euros, were in line with predictions.

The company maintained its outlook for the full year, which includes adjusted EBITDA of 3.2 billion euros. The adjustments reflect changes in Galp’s stocks of crude.

Galp’s share of oil and gas production from projects in which it has a stake, mainly in Brazil, fell 8% year-on-year to 120,300 barrels of oil equivalent per day, reflecting the sale of Angolan upstream assets.

Brent oil prices dropped to an average of $81.2 a barrel in the first quarter from $102.2 a year ago, it said.

The refining margin rose to $14.3 a barrel from $4.8 a year earlier, taking advantage “from the reduced energy costs environment.

($1 = 0.9058 euros)

(Reporting by Sergio Goncalves; editing by Andrei Khalip)