Bad news for Galp. Company lost 735 million in the stock market in 5 days

by Andrea
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Galp discovers two more “good quality” oil and gas reservoirs in Namibia

José Sena Goulão / Lusa

Bad news for Galp. Company lost 735 million in the stock market in 5 days

The results of the company in 2024 were far short of the expected by the market, which translated into a 6% break in the stock market.

Galp presented a profit of 961 million euros in 2024, a It remains 4% compared to the previous year. The fourth quarter was even more penalizing, with the results falling 75% to just 71 million euros, being far below the analysts estimates.

The market reaction was immediate, with the actions to register a devaluation greater than 6% In just 5 days, which represented a loss of about 735 million euros in scholarship capitalization, explains the.

The disclosure of the results led to a wave of low reviews of the company’s forecasts. Seven investment houses cut the target price of Galp’s shares. The Goldman Sachs reduced the goal from 23 to 21 euroswhile RBC Capital made the highest correction, lowering the forecast in three euros to 22 euros. Other cuts came from institutions such as Oddo BHF, Alantra Equities, Citigroup, HSBC and Equita, adjusting predictions between ten cents and one euro.

Even with a pessimistic scenario, Galp announced a 15% rise dividendfor 0.62 euros per action, a decision well received by HSBC. However, the British bank considered that the dividend distribution policy follows the expected line and therefore “does not generate enthusiasm.” In addition, he pointed out that the production scheduled for 2025 – over 105,000 barrels a day – fell short of market expectations, which anticipated 115,000 daily barrels.

Another factor of interest for investors is the development of Galp’s perforations in Namibia, whose details have not yet been revealed. HSBC believes that Results can be significantif they indicate the existence of additional resources that justify a new exploration project.

Despite uncertainty, analysts remain relatively confident in the oil potential. Currently, 14 investment houses recommend buying the shares, seven suggest maintaining the position and only four advise the sale.

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