Portugal's Galp Energia on Monday posted a 22% fall in third-quarter adjusted core profit, hit by lower oil output and a sharp drop in refining margins, but earnings still beat estimates for the period.
The energy firm reported adjusted earnings before interest, taxes, depreciation and amortization of 820 million euros ($885 million), beating the 766 million euros average expected by 20 analysts polled by the company.
Galp's share of oil and gas production from projects in which it has a stake fell 10% year-on-year to 112,000 barrels of oil equivalent per day, reflecting the disposal of its 10% stake in the Area 4 project in Mozambique.
Only considering the Brazilian assets that are its current portfolio, production was down 3% year-on-year, Galp said.
CEO Filipe Silva said in a statement the company had delivered "another robust performance during this quarter, despite the less supportive refining and commodities price environment".
Brent crude prices fell to an average of $80.3 per barrel in the quarter from $86.7 a year earlier, it added, while the refining margin plummeted to $4.7 per barrel from $14.6 a year earlier.
Silva said Galp was in a strong position to continue growing its low-carbon production projects, while decarbonising its refining operations.
Its adjusted net profit increased 27% to 266 million euros in the quarter, also above the 220 million euros estimated, benefiting from lower taxes.
The results are adjusted to reflect changes in the company's stocks of crude.
($1 = 0.9261 euros)
(Reuters - Reporting by Sergio Goncalves; Editing by David Latona and Jan Harvey)
