Paula Amorim, president of the board of directors of Galp
An analysis by the Royal Bank of Canada anticipates a likely acquisition or merger of the Portuguese oil company, with the North American Chevron leading the way.
The oil company Galp is facing a moment of transformation, marked by unexpected departure of CEO Filipe Silvathe fourth executive to leave the company since Paula Amorim assumed the presidency of the board of directors.
Meanwhile, the company is attracting market attention due to the growth of its operations in Namibia and Brazil, and could become the target of a merger or acquisition. Among potential interested parties, the norte-americana chevronaccording to an analysis by the Royal Bank of Canada (RBC).
Galp’s strategy has focused on the energy transition and the reorganization of the oil and gas exploration and production portfolio. In 2023, the oil company sold assets in Angola to Somoil for 830 million dollars (777.2 million euros) and, previously, disinvested in Mozambique by transferring the stake to ADNOC.
Now, Galp focuses its efforts on promising projectssuch as the pre-salt in the Santos basin, in Brazil, and new discoveries in Namibia, where it plans to sell 40% of its stake to finance operations.
According to RBC, this reorganization, combined with the expected growth of the Bacalhau project in Brazil, makes Galp a attractive candidate for acquisitions. Biraj Borkhataria, an analyst at RBC Europe, reinforces that “the surprising departure of the CEO should only fuel expectations” of mergers and acquisitions, cites .
Filipe Silva’s dismissal occurred after an internal complaint about a possible conflict of interest due to an unreported romantic relationship with a subordinate. In two years as CEO, Silva oversaw a significant appreciation in Galp shares, driven by discoveries in Namibia.
Despite the departure, analysts remain optimistic about Galp’s future. The average share price target, set at 20.06 euros, suggests a 25% appreciation potential. Of the total of 25 investment houses that follow the security, 12 recommend buying, 10 suggest holding and only three recommend selling.
