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Galp Energia (GLPEY)
OTHER OTC:GLPEY
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Galp Energia SGPS SA
(OTC:GLPEY)
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Rating:70Outperform
Price Target:
$10.50
▲(5.63% Upside)
Galp Energia's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting operational achievements and financial resilience. However, bearish technical indicators and macroeconomic challenges temper the outlook.
Positive Factors
Strong Upstream Production
Consistent high production levels in Brazil enhance revenue potential and strengthen Galp's market position in the upstream segment.
Bacalhau Project Milestone
Achieving first oil at Bacalhau is a critical milestone that will contribute to long-term cash flow and support financial growth.
Financial Resilience
Reducing net debt enhances financial stability, providing Galp with flexibility to invest in growth opportunities and withstand market volatility.
Negative Factors
Decreasing Profit Margins
Declining profit margins indicate potential challenges in cost management and pricing power, affecting long-term profitability.
Volatile Macro Environment
Ongoing macroeconomic volatility can disrupt operations and financial performance, posing risks to strategic planning and execution.
Mozambique Tax Dispute
The unresolved tax dispute in Mozambique could lead to financial liabilities and impact Galp's operations in the region.
Galp Energia SGPS SA (GLPEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.14B
Dividend Yield4.42%
Average Volume (3M)2.12K
Price to Earnings (P/E)12.8
Beta (1Y)0.59
Revenue Growth-5.97%
EPS Growth-23.18%
CountryUS
Employees6,881
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.21
Shares Outstanding1,390,831,300
10 Day Avg. Volume0
30 Day Avg. Volume2,120
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)5.19
Price to Sales (P/S)1.14
P/FCF Ratio21.16
Enterprise Value/Market Cap2.17
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit14.69
Enterprise Value/Ebitda10.44
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Galp Energia SGPS SA Business Overview & Revenue Model
Company DescriptionGalp Energia SGPS SA (GLPEY) is a Portuguese integrated energy company engaged in the exploration, production, refining, and distribution of oil and gas, as well as the generation and distribution of electricity. The company operates across various sectors including upstream operations (oil and gas exploration and production), downstream operations (refining, distribution, and marketing of petroleum products), and renewable energy. Galp focuses on innovative energy solutions, aiming to transition towards sustainable energy sources while maintaining a significant presence in traditional fossil fuel markets.
How the Company Makes MoneyGalp Energia generates revenue primarily through the sale of crude oil, natural gas, refined petroleum products, and electricity. The company's upstream segment contributes to its earnings through the exploration and production of oil and gas, selling extracted resources to both domestic and international markets. In the downstream segment, revenue is derived from refining crude oil into various products, including gasoline, diesel, lubricants, and petrochemicals, which are then distributed through its extensive fuel retail network. Additionally, Galp is investing in renewable energy projects, such as wind and solar power, diversifying its income sources. Strategic partnerships with other energy companies and participation in joint ventures also enhance its operational efficiency and market reach, further contributing to its financial performance.
Galp Energia SGPS SA Earnings Call Summary
Earnings Call Date:Oct 27, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong operational performance with notable achievements in upstream production, financial resilience, and commercial sector performance. However, the call also highlighted challenges such as a volatile macro environment, refinery impacts, a tax dispute in Mozambique, and ongoing negotiations in Namibia.Q3-2025 Updates
Positive Updates
Strong Upstream Production in Brazil
Upstream production in Brazil continued elevated with 115,000 barrels per day, driven by high availabilities of the fleet during the quarter. Confidence in ending the year close to the upper end of the 150,000 to 110,000 guidance.
Bacalhau First Oil Milestone
Bacalhau reached first oil, a key project for Galp, expected to drive free cash flow growth in the coming years.
Record High Quarterly EBITDA in Iberia
In Iberia, record high quarter EBITDA posted in downstream businesses, particularly in refining and commercial.
Resilient Financial Position
Further reduced net debt to 0.4x, reinforcing financial position, with a 2026 dividend breakeven just below $40.
Strong Commercial Sector Performance
Commercial sector results above pre-COVID levels, with nonfuel and new business nearly at 30% of the full delivered value.
Negative Updates
Volatile Macro Environment
The macro environment continues to be volatile and challenging, affecting overall operations.
Refinery Turnaround Impact
Refinery maintenance expected to impact fourth-quarter performance, with a negative contribution from refining.
Mozambique Tax Dispute
International arbitration triggered over tax dispute with Mozambique, but no provision recognized in the books.
Namibia Partnership Uncertainty
Ongoing discussions and negotiations regarding Namibia partnership, with no definitive resolution yet.
Company Guidance
During Galp's Third Quarter 2025 Results Presentation, the company shared guidance indicating strong performance across its portfolio. In upstream, Brazil's production remained elevated at 115,000 barrels per day, boosting confidence to end the year near the high end of their 150,000 to 110,000 barrels per day guidance. Bacalhau's recent first oil milestone is poised to drive future free cash flow growth. In Iberia, strong seasonal trends in downstream businesses, notably in refining and commercial, resulted in record-high quarterly EBITDA, surpassing pre-COVID levels. Despite a volatile macro environment, Galp maintains a resilient portfolio with a 2026 dividend breakeven below $40 per barrel. The company expects to exceed its full-year group EBITDA and operating cash flow guidance, driven by robust asset performance. Financially, Galp continues to strengthen its position by reducing net debt to 0.4x, providing a solid foundation to pursue value-accretive opportunities. The ongoing discussions in Namibia are progressing well, reinforcing confidence in establishing a strong partnership to accelerate and prioritize the Mopane project.Galp Energia SGPS SA Financial Statement Overview
Summary
Galp Energia shows a stable financial performance with strong cash flow growth and manageable debt levels. However, there are concerns about decreasing profit margins and challenges in sustaining free cash flow levels.Income Statement
Galp Energia has shown a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 1.71%, but this is a slowdown compared to previous years. Gross profit margin and net profit margin have decreased over time, indicating pressure on profitability. However, the company maintains a reasonable EBIT and EBITDA margin, reflecting operational efficiency.65
Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 1.11 in the TTM period, which is manageable but slightly higher than the previous year. Return on equity has decreased from previous years, indicating reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced asset structure.70
Positive
Cash Flow
Galp Energia's cash flow statement reveals a strong free cash flow growth of 63.97% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio has decreased, pointing to potential challenges in maintaining free cash flow levels.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.82B | 21.31B | 20.77B | 26.84B | 16.11B | 11.39B |
| Gross Profit | 2.09B | 2.73B | 3.98B | 2.67B | 1.83B | 166.00M |
| EBITDA | 2.94B | 3.50B | 3.75B | 4.54B | 1.81B | 1.19B |
| Net Income | 974.39M | 1.04B | 1.24B | 1.48B | 191.00M | -490.00M |
Balance Sheet | ||||||
| Total Assets | 15.30B | 16.82B | 16.61B | 16.10B | 14.91B | 12.49B |
| Cash, Cash Equivalents and Short-Term Investments | 2.97B | 2.44B | 2.37B | 2.74B | 2.93B | 1.83B |
| Total Debt | 4.87B | 4.91B | 5.41B | 5.26B | 5.48B | 4.83B |
| Total Liabilities | 10.12B | 11.18B | 11.28B | 10.98B | 10.94B | 8.39B |
| Stockholders Equity | 4.39B | 4.69B | 4.41B | 4.16B | 3.05B | 3.16B |
Cash Flow | ||||||
| Free Cash Flow | 743.11M | 1.15B | 1.57B | 1.99B | 273.00M | 239.00M |
| Operating Cash Flow | 2.03B | 2.53B | 2.63B | 3.07B | 1.05B | 888.00M |
| Investing Cash Flow | -458.00M | -1.05B | -1.02B | -1.27B | -460.00M | -674.00M |
| Financing Cash Flow | -1.12B | -1.35B | -1.91B | -1.26B | -530.00M | 190.00M |
Galp Energia SGPS SA Technical Analysis
Positive
9.94
Price Trends
9.38
Negative
9.48
Negative
9.03
Positive
Market Momentum
0.05
Negative
61.90
Neutral
95.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPEY, the sentiment is Positive. The current price of 9.94 is above the 20-day moving average (MA) of 8.74, above the 50-day MA of 9.38, and above the 200-day MA of 9.03, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 95.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLPEY.
Galp Energia SGPS SA Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $58.62B | 19.33 | 5.31% | 5.41% | -3.84% | 15.75% | |
74 Outperform | $25.24B | 9.28 | 13.79% | 18.88% | -7.45% | -28.80% | |
70 Outperform | $14.14B | 12.82 | 21.59% | 4.42% | -5.97% | -23.18% | |
69 Neutral | $64.40B | 12.03 | 13.46% | 7.43% | 1.53% | -35.81% | |
69 Neutral | $78.79B | 5.92 | 18.20% | 14.10% | -11.63% | -15.67% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | $14.36B | -28.44 | -4.00% | ― | -2.76% | 56.81% |
* Energy Sector Average
GLPEY
Galp Energia SGPS SA
9.36
0.64
7.32%
EC
Ecopetrol SA
12.25
4.64
60.93%
E
Eni SPA
38.70
11.45
42.02%
PBR
Petroleo Brasileiro SA- Petrobras
12.69
0.17
1.34%
EQNR
Equinor ASA
25.37
1.89
8.04%
YPF
YPF Sociedad Anonima
34.31
-9.04
-20.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.