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Galp Energia (GLPEY)
:GLPEY
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Galp Energia SGPS SA
(OTC:GLPEY)
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Rating:68Neutral
Price Target:
$10.50
▲(12.78% Upside)
Galp Energia's overall stock score is driven by a stable financial performance and positive earnings call outlook, despite some revenue decline and operational cash flow concerns. The technical analysis indicates a neutral trend, while the valuation is reasonable with a supportive dividend yield.
Galp Energia SGPS SA (GLPEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.02B
Dividend Yield1.95%
Average Volume (3M)4.31K
Price to Earnings (P/E)13.0
Beta (1Y)0.44
Revenue Growth-3.86%
EPS Growth-25.50%
CountryUS
Employees6,881
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.24
Shares Outstanding1,390,831,300
10 Day Avg. Volume4,203
30 Day Avg. Volume4,308
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit7.19
Enterprise Value/Ebitda5.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Galp Energia SGPS SA Business Overview & Revenue Model
Company DescriptionGalp Energia SGPS SA is a Portuguese multinational energy company engaged in the exploration, production, refining, and distribution of oil and gas, as well as the development of renewable energy sources. The company operates in various sectors, including upstream (exploration and production of oil and natural gas), midstream (transportation and storage of hydrocarbons), and downstream (refining and marketing of fuels and lubricants). Additionally, Galp is involved in renewable energy projects, particularly in solar and wind energy, aligning with global trends towards sustainability.
How the Company Makes MoneyGalp Energia generates revenue primarily through its upstream activities, where it explores and produces oil and gas, selling these commodities in both domestic and international markets. The company also earns significant income from its downstream operations, which include refining crude oil into various petroleum products and marketing these products through its extensive retail network. Furthermore, Galp is investing in renewable energy projects, which are expected to contribute to future revenue streams as the global energy landscape shifts. Key partnerships with other energy companies and investments in joint ventures enhance its operational capabilities and market reach, while its integrated business model allows for cost efficiencies and risk management across its operations.
Galp Energia SGPS SA Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
Galp's earnings call reflects a positive outlook with strong operational performance, particularly in upstream production and LNG trading. Financial guidance has been revised upwards, indicating confidence in future performance. However, challenges such as currency depreciation and disputes in Mozambique present areas of concern.Q2-2025 Updates
Positive Updates
Strong Upstream Production
Production reached 113,000 barrels per day, leading to an upgrade in the full-year production guidance to a range of 105,000 to 110,000 barrels per day.
Upward Revision of Financial Guidance
Full-year group EBITDA is now expected to surpass EUR 2.7 billion, up from a previous forecast of EUR 2.5 billion, with operating cash flow expected to exceed EUR 1.8 billion.
Significant LNG Trading Success
Successful lifting of 3 LNG cargoes from Venture Global and an expectation to receive a total of 10 cargoes by year-end, contributing significantly to midstream revenue.
Strong Cash Generation
Despite currency headwinds, strong operating performance led to robust cash generation.
Negative Updates
Currency Depreciation Impact
The company's financial performance faced headwinds from the depreciation of the dollar.
Capital Gains Dispute in Mozambique
There is an ongoing dispute regarding capital gains assessments in Mozambique, which could potentially lead to legal action.
Potential Delays in Namibian Asset Development
The farm-out process for the Namibian asset is ongoing with a target to complete by year-end, but no definitive timeline for FID has been provided, reflecting potential delays.
Company Guidance
During Galp's second-quarter 2025 call, the company upgraded its full-year production guidance to 105,000-110,000 barrels per day, reflecting strong upstream production and limited maintenance. The company successfully lifted three LNG cargoes from Venture Global, now expecting a total of ten cargoes for the year, contributing significantly to the midstream performance. Financial guidance was revised upwards, with full-year group EBITDA projected to exceed EUR 2.7 billion, up from a previous estimate of EUR 2.5 billion, and operating cash flow expected to surpass EUR 1.8 billion. The CapEx forecast for 2025 has been revised to below EUR 1 billion, with heavier spending anticipated in the second half, especially in low-carbon projects with a 2026 online date. Regarding Namibia, Galp is in the process of analyzing nonbinding offers from credible partners and aims to secure a partnership by year-end, emphasizing the importance of strategic alignment over rushing the process.Galp Energia SGPS SA Financial Statement Overview
Summary
Galp Energia demonstrates stable profitability with a net profit margin of 4.82% and an EBIT margin of 10.63%. However, declining revenue growth and a decrease in gross profit margin pose potential risks. The balance sheet is moderately strong with a debt-to-equity ratio of 1.14 and a return on equity of 21.58%. Cash flow shows positive growth, but operational cash generation needs improvement.Income Statement
Galp Energia's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -3.31% in the TTM period. However, it maintains a stable net profit margin of 4.82% and an EBIT margin of 10.63%, indicating operational efficiency. The gross profit margin has decreased compared to previous years, which could be a concern. Overall, while profitability remains stable, the declining revenue trend is a potential risk.Balance Sheet
The balance sheet reflects a moderate financial position. The debt-to-equity ratio of 1.14 in the TTM period suggests a balanced leverage, though slightly higher than the previous year. The return on equity is strong at 21.58%, indicating effective use of equity to generate profits. The equity ratio is stable, showing a solid capital structure. While the company has managed its debt well, maintaining this balance is crucial to avoid financial strain.Cash Flow
Galp Energia's cash flow statement indicates some strengths and weaknesses. The free cash flow growth rate has improved by 13.23% in the TTM period, showing positive cash generation. However, the operating cash flow to net income ratio is relatively low at 0.42, suggesting that cash generation from operations could be improved. The free cash flow to net income ratio is moderate at 0.25, indicating that a portion of earnings is being converted into free cash flow. Overall, while there is positive cash flow growth, operational cash generation needs attention.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.35B | 21.31B | 20.77B | 26.84B | 16.11B | 11.39B |
| Gross Profit | 2.35B | 2.73B | 3.98B | 2.67B | 1.83B | 166.00M |
| EBITDA | 3.13B | 3.50B | 3.75B | 4.54B | 1.81B | 1.19B |
| Net Income | 980.00M | 1.04B | 1.24B | 1.48B | 191.00M | -490.00M |
Balance Sheet | ||||||
| Total Assets | 15.51B | 16.82B | 16.61B | 16.10B | 14.91B | 12.49B |
| Cash, Cash Equivalents and Short-Term Investments | 2.81B | 2.44B | 2.37B | 2.74B | 2.93B | 1.83B |
| Total Debt | 4.95B | 4.91B | 5.41B | 5.26B | 5.48B | 4.83B |
| Total Liabilities | 10.40B | 11.18B | 11.28B | 10.98B | 10.94B | 8.39B |
| Stockholders Equity | 4.33B | 4.69B | 4.41B | 4.16B | 3.05B | 3.16B |
Cash Flow | ||||||
| Free Cash Flow | 505.00M | 1.15B | 1.57B | 1.99B | 273.00M | 239.00M |
| Operating Cash Flow | 1.74B | 2.53B | 2.63B | 3.07B | 1.05B | 888.00M |
| Investing Cash Flow | -543.00M | -1.05B | -1.02B | -1.27B | -460.00M | -674.00M |
| Financing Cash Flow | -1.26B | -1.35B | -1.91B | -1.26B | -530.00M | 190.00M |
Galp Energia SGPS SA Technical Analysis
Positive
9.31
Price Trends
9.50
Positive
9.35
Positive
8.65
Positive
Market Momentum
-0.05
Positive
52.52
Neutral
36.65
Neutral
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 9.31 is below the 20-day moving average (MA) of 9.56, below the 50-day MA of 9.50, and above the 200-day MA of 8.65, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 36.65 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $52.72B | 19.98 | 4.83% | 5.13% | -6.31% | -33.87% | |
73 Outperform | $72.90B | 5.51 | 19.48% | 14.22% | -13.68% | -13.96% | |
71 Outperform | $18.07B | 6.27 | 15.94% | 20.45% | -7.51% | -29.04% | |
71 Outperform | $59.31B | 7.67 | 19.22% | 8.93% | 1.19% | -7.87% | |
68 Neutral | $14.02B | 12.96 | 21.08% | 1.95% | -3.86% | -25.50% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $10.43B | 7.92 | 10.88% | ― | 4.28% | ― |
* Energy Sector Average
GLPEY
Galp Energia SGPS SA
9.55
0.82
9.39%
EC
Ecopetrol SA
8.75
1.53
21.19%
E
Eni SPA
35.43
6.37
21.92%
PBR
Petroleo Brasileiro SA- Petrobras
11.73
-0.22
-1.84%
EQNR
Equinor ASA
23.97
1.45
6.44%
YPF
YPF Sociedad Anonima
24.75
0.45
1.85%
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.