Galp reported a significant increase in fourth-quarter 2025 profits, with RCA net income reaching €182 million, more than double the €71 million from the same period the previous year and exceeding analyst expectations of €160 million.

Operational Performance and Mitigating Factors

The profit surge was driven by higher production in Brazil and strong natural gas trading, which offset negative impacts from lower oil prices, US dollar depreciation, and planned maintenance at the Sines refinery. The company highlighted strong operational performance across all business areas.

Key Growth Drivers

Production growth was supported by the Bacalhau oilfield offshore Brazil, where Galp holds a 20% stake. This contributed to raising average production to 113,000 barrels of oil equivalent per day. Additionally, the start of LNG cargo deliveries from Venture Global under long-term contracts boosted trading volumes by 48% to 17.4 terawatt hours, helping mitigate the refinery maintenance impact.

Shareholder Returns and Future Outlook

Galp maintained its share buyback program with a new €250 million tranche and increased the 2025 dividend by 4% to €0.64 per share. For 2026, the company identified the Bacalhau ramp-up as a key growth driver, guiding net capital expenditure up to €800 million and organic capex around €1 billion, prompting analyst attention on potential inorganic activity in upstream or low-carbon sectors.