Galp Energia SGPS SA (GLPEY) AI Stock Analysis

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Galp Energia SGPS SA

(OTC:GLPEY)

69Neutral

Galp Energia's overall score reflects stable financial performance with strong profitability metrics and a balanced leverage position. The company's strategic execution and successful divestments contribute positively, although challenges in revenue growth and cash flow generation persist. The technical analysis suggests a neutral trend, and the valuation appears reasonable with a moderate dividend yield. The earnings call sentiment is cautiously optimistic despite operational challenges.

Galp Energia SGPS SA (GLPEY) vs. S&P 500 (SPY)

Market Cap

$11.79B

Dividend Yield1.92%

Average Volume (3M)5.11K

Price to Earnings (P/E)10.8

Beta (1Y)0.35

Revenue Growth1.21%

EPS Growth-16.46%

CountryUS

Employees6,881

SectorEnergy

Sector Strength51

IndustryOil & Gas Integrated

Share Statistics

EPS (TTM)0.26

Shares Outstanding1,390,831,300

10 Day Avg. Volume0

30 Day Avg. Volume5,107

Financial Highlights & Ratios

PEG Ratio-1.10

Price to Book (P/B)4.39

Price to Sales (P/S)0.00

P/FCF Ratio46.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

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, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Energy Management, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, and Angola. The Industrial & Energy Management segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment also provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces biodiesel, biofuel, and green hydrogen; and operates 1,480 service stations and 1,186 electric mobility charging points. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

How the Company Makes MoneyGalp Energia generates revenue through multiple streams primarily centered around its activities in the oil and gas sector. Its upstream segment, which involves the exploration and production of oil and natural gas, contributes significantly to its earnings through the sale of crude oil and gas. The downstream segment, comprising refining and marketing, earns money by processing crude oil into refined products like gasoline, diesel, and jet fuel, which are then sold to both retail and wholesale markets. Additionally, Galp's renewable energy initiatives, including solar and wind power projects, provide revenue through the sale of electricity. The company's strategic partnerships and joint ventures in various regions enhance its operational capabilities and market reach, further boosting its financial performance.

Galp Energia SGPS SA Financial Statement Overview

Summary

Galp Energia exhibits stable financial performance with strong profitability metrics, moderate leverage, and a solid equity base. However, challenges in revenue growth and cash flow generation may pose risks.

Income Statement

Positive

Galp Energia has demonstrated stable profitability with consistent EBIT and EBITDA margins. The TTM (Trailing-Twelve-Months) gross profit margin is 11.59% and the net profit margin is 4.89%. However, there is a slight decline in revenue growth with a -1.26% decrease in revenue from 2024 to TTM 2025, indicating potential challenges in revenue generation.

Balance Sheet

Positive

The company maintains a moderate debt-to-equity ratio of 1.03, indicating balanced leverage levels. The equity ratio stands at 29.40%, suggesting a solid equity base. Return on equity has been stable, with some fluctuations, currently at 21.55%, which reflects decent profitability relative to shareholder investments. The balance sheet is stable but shows potential vulnerability if external conditions worsen.

Cash Flow

Positive

Galp Energia's cash flow performance is mixed, with a notable decline in free cash flow from 2024 to TTM 2025, resulting in a -61.22% free cash flow growth rate. The operating cash flow to net income ratio is 1.75, indicating efficient cash generation relative to profits. However, the free cash flow to net income ratio has decreased significantly, suggesting cash flow pressures.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
21.04B	21.31B	20.77B	26.84B	16.11B	11.39B
	Gross Profit
2.44B	2.73B	3.98B	2.67B	1.83B	166.00M
	EBIT
2.29B	2.55B	3.51B	2.56B	1.79B	-127.00M
	EBITDA
3.36B	3.50B	3.75B	4.54B	1.81B	1.19B
	Net Income Common Stockholders
1.03B	1.04B	1.24B	1.48B	191.00M	-490.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.79B	2.44B	2.37B	2.74B	2.93B	1.83B
	Total Assets
16.23B	16.82B	16.61B	16.10B	14.91B	12.49B
	Total Debt
4.93B	4.91B	5.41B	5.26B	5.48B	4.83B
	Net Debt
2.58B	2.62B	3.21B	2.83B	3.54B	3.15B
	Total Liabilities
10.67B	11.18B	11.28B	10.98B	10.94B	8.39B
	Stockholders Equity
4.77B	4.69B	4.41B	4.16B	3.05B	3.16B
Cash Flow		Free Cash Flow
446.00M	1.15B	1.57B	1.99B	273.00M	239.00M
	Operating Cash Flow
1.80B	2.53B	2.63B	3.07B	1.05B	888.00M
	Investing Cash Flow
-88.00M	-1.05B	-1.02B	-1.27B	-460.00M	-674.00M
	Financing Cash Flow
-1.13B	-1.35B	-1.91B	-1.26B	-530.00M	190.00M

Galp Energia SGPS SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price7.87

Price Trends

50DMA

7.95

Negative

100DMA

8.17

Negative

200DMA

8.74

Negative

Market Momentum

MACD

0.01

Negative

RSI

50.90

Neutral

STOCH

72.76

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPEY, the sentiment is Negative. The current price of 7.87 is above the 20-day moving average (MA) of 7.81, below the 50-day MA of 7.95, and below the 200-day MA of 8.74, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 72.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLPEY.

Galp Energia SGPS SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EC	79 Outperform	$17.64B	5.16	18.64%	11.65%	-2.26%	-20.04%
TTE	76 Outperform	$124.81B	9.73	11.75%	4.68%	-9.86%	-32.59%
E	74 Outperform	$45.84B	16.89	4.78%	4.84%	-2.17%	-25.00%
EQNR	73 Outperform	$63.61B	7.36	18.28%	4.87%	3.96%	-1.69%
GLPEY	69 Neutral	$11.79B	10.76	21.35%	1.92%	1.21%	-16.46%
PBR	68 Neutral	$74.47B	9.24	11.25%	15.12%	-10.84%	-61.73%
Sector *	57 Neutral	$7.20B	3.42	-3.69%	5.69%	0.56%	-50.74%

* Energy Sector Average

Performance Comparison

GLPEY

Galp Energia SGPS SA

7.82

-2.44

-23.78%

Ecopetrol SA

8.60

-1.68

-16.34%

Eni SPA

30.17

-1.03

-3.30%

PBR

Petroleo Brasileiro SA- Petrobras

12.02

-1.02

-7.82%

EQNR

Equinor ASA

23.62

-2.63

-10.02%

TTE

TotalEnergies

59.68

-10.33

-14.76%

Galp Energia SGPS SA Earnings Call Summary

Earnings Call Date:Apr 28, 2025

(Q1-2025)

% Change Since: -0.88%|

Next Earnings Date:Jul 21, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Galp's strong financial resilience and strategic execution in a volatile market, with successful divestments and a positive outlook in Namibia. However, operational challenges due to maintenance and weather-related disruptions were noted. The sentiment leans towards strong, but cautious optimism.

Q1-2025 Updates

Positive Updates

Strong Financial Position

Galp's upstream operating base runs on a cash breakeven of $20 per barrel, enabling resilience against market volatility. The company also completed the divestment of its stake in Mozambique Area 4 and received a final earnout from Angola, translating into €870 million in cash.

Namibia Exploration Success

In Namibia, well number 5 was safely drilled, unlocking the Southeast region of the Mopane complex. The company is engaging with potential partners for a value-accretive partnership.

Solid Performance in Midstream

The midstream segment showed strong performance with the first cargo from Venture Global lifting on April 15th, which was not included in the 2025 guidance.

Robust Contributions in Iberian Businesses

Galp's Iberian businesses contributed robustly, offsetting slightly weaker upstream performance due to planned maintenance.

Negative Updates

Upstream Performance Impacted by Maintenance

Planned maintenance led to the concentration of stoppage days, already over 40% of the full-year plan, affecting upstream performance.

Weather-Related Disruptions

Extreme weather in Portugal resulted in disruptions that affected inventory levels and schedules.

Refining Margins Under Pressure

Refining margins were slightly below expectations due to weaker middle distillate cracks and suboptimal operations caused by bad weather.

Company Guidance

In Galp's first quarter 2025 results presentation, the management provided insights into their strategic approach and financial outlook amid market volatility. They highlighted a disciplined capital expenditure (CapEx) strategy aiming for tighter net CapEx spending, already showcasing a 20% reduction from previous periods. The company maintained a resilient financial position, with an upstream cash breakeven of $20 per barrel, and did not update its financial guidance despite macroeconomic uncertainties. Galp reported a production figure of 104,000 barrels, affected by planned maintenance, and noted a significant €870 million cash inflow from divestments in Mozambique and Angola. Additionally, they emphasized ongoing data integration and potential partnerships in Namibia, projecting a partnership decision by Q4, while maintaining a cautious approach without committing to a strict timeline. Overall, the company underscored its focus on disciplined execution and long-term value creation.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.