Message from
Paula Amorim
Reflecting on 2024, our journey has been an inspiring one, navigating a dynamic geopolitical landscape with ongoing conflicts, economic pressures and political changes. Despite these challenges, our resilience and commitment have shown through. We faced a complex world with focused determination and a sense of adaptability, combining energy delivery, economic resilience and remarkable execution.
At Galp, we continue focusing on sustainable long-term value creation through financial discipline and employing a credible and pragmatic approach to the energy transition. We leverage the advantages of our integrated business model, combining our world-class Upstream portfolio with a robust and diverse downstream footprint in Iberia, where we have a natural market and a very well-established presence.
2024 will be inevitably remembered as the year of our groundbreaking exploratory efforts in Namibia. Safely drilling five wells in little over a year was a remarkable accomplishment for the teams. Whilst our position in Namibia has the potential to unlock further long-term growth avenues for Galp, today, our low-cost, low-emissions and long-life Upstream portfolio will continue to play a pivotal role in funding the transformation and decarbonisation of our downstream portfolio as we strive to adapt our product offering to the ever-evolving needs of society and the communities we serve.
Galp's outlook for 2025 and beyond is promising, notwithstanding the expected pressured and uncertain macroeconomic conditions. On the one hand, we will continue to deliver improved operational efficiencies that support the resilience of our operating portfolio across all of our businesses. Then, the next 18 months will be paramount for Galp as we deliver crucial projects within our portfolio that will drive our growth and transformation. We will see first-oil from the Bacalhau project in Brazil later this year leading Galp's production growth, and the start-up of our low-carbon industrial projects, the green H2 and SAF/HVO units, in Sines, which represent a significant contribution to the transformation and growth of the industrial sector in Portugal.
Increased visibility on upcoming project execution and our disciplined approach to a low capital intensity plan support the Board of Directors confidence to propose at the next Annual General Meeting a cash dividend base of €0.62 per share related to 2024, which represents a 15% increase. This is complemented by the €250 m share buyback programme, which commenced in February, further showcasing our determination to competitively reward our shareholder base.
I have the utmost confidence in our renewed executive team, co-headed by Maria João Carioca and João Diogo Marques da Silva, whose combined expertise and experience create a powerful partnership to drive Galp forward and execute our ambitious plan.
Finally, I want to express my deepest gratitude to all my Galp colleagues for their tireless efforts and congratulate them for the exceptional quality of the work that has been done. These were major keys to turning 2024 into such a remarkable year for Galp. Also, a special thanks to our shareholders, customers, and partners for their continued trust and support.
Together, we are building a better, more resilient future, eagerly anticipating the opportunities and challenges of the years ahead.
Message from
the Board of Directors
Message from
Maria João Carioca
and João Diogo
Marques da Silva
2024 has been a year of consistent delivery and transformational growth for Galp and its People. We are proud of our teams and their sound operational performance across all divisions, which inevitably led us to end the year with a reinforced financial robustness.
It is increasingly evident that we operate in a dynamic, ever-changing macro and geopolitical context, which shapes our integrated businesses and demands an agile stance from our operations. Maintaining our portfolio resilience, with assets operating as efficiently and as low-cost as possible, and our financial discipline will be paramount to navigating such volatility.
But 2024 was not just a year of sound operating performance and financial delivery, it was also a year of strong project execution that will fuel the short and medium-term growth and transformation of the Company.
In Brazil, Bacalhau FPSO sailed away at the end of the year and is currently on location offshore Brazil. The project start-up later this year and its ramp-up in 2026 will support Galp in more than doubling the free cash generation from its Upstream portfolio in Brazil.
In Namibia, we made incredible progress, safely drilling five wells with an impressive pace of execution, aiming at de-risking and potentiating our understanding of the Mopane complex. Results obtained continue to be encouraging as we analyse and interpret the vast amount of data collected.
On our integrated downstream position in Iberia, we also made good progress on the construction of the Advanced Biofuels Unit for HVO/SAF production and the 100 MW electrolyser plant for green hydrogen production. With both projects expected to begin commercial operations in 2026, they will play a pivotal role in Galp's downstream decarbonisation journey. As a key Iberian supplier and the operator of Portugal's only refinery, in Sines, we believe Galp must play an important role in supporting and promoting a just energy transition, in line with evolving market needs and minding a safe and responsible energy supply to the region.
Midstream and Commercial continue to be important contributors to Galp's integration and performance, building on a more flexible commodities portfolio and a leading market position in Portugal.
Renewables will continue to play a vital integration angle and provide a natural hedge within the portfolio. Galp aims to continue developing its organic portfolio of solar PV projects, prioritising returns over capacity build-up and potentiating portfolio value through hybridisation and storage solutions.
Looking to the plan for the next two years, our investment framework underscores our direction, combining selective upstream growth with the optimisation and decarbonisation of our downstream activities. We will allocate 65% of our gross capex to growth and transformation projects while reducing our net capex needs to below €800 m per year.
Galp will remain invested in long-term sustainable value creation and its decarbonisation journey. We are maturing our energy transition path, taking into account in particular the ongoing portfolio evolution following the potentially transformative Mopane discovery, in Namibia, while remaining focused in decarbonising our operations, with close to 35% of our projected gross spending is 2025-26 being in alignment with EU taxonomy.
Under this powerful co-leadership model, together with an experienced Executive team and the Board's support, we see Galp well positioned to ensure continued strategic execution, explore value-accretive opportunities for our shareholders and, above all, guarantee a safe working environment for all our employees.
Message from
the Board of Directors
