Galp’s first quarter results, communicated by the company to the Markets and Securities Commission (CMVM), indicate that the adjusted net result (RCA) of the first quarter of this year reflects “the adversity of market conditions”.
These adversities “led to the recording of a loss of €257 million according to international accounting standards (IFRS), as a result of the recognition of the devaluation of Galp’s inventory by €278 million due to the fall in prices of products”.
Galp says that the Covid-19 pandemic led to an abrupt drop in demand and that it is therefore “developing initiatives that will allow the reduction of investment of more than €500 million per year in 2020 and in 2021”.
“During this period, the net investment will be between €500 million and €700 million, values that can be adjusted according to the evolution of market conditions”, says the company, which considers that “the flexibility of the portfolio of assets and projects “allowed Galp to respond” in an agile way to safeguard its resilience in the current market environment essentially through the rescheduling of expansion projects”.
At the end of March, Galp’s net debt stood at €1.4 billion, an increase of €61 million compared to the end of 2019.