2012-02-10 07:57:07 -

Galp Energia's 4th quarter 2011 results and strategy execution update

Galp Energia releases today the 4th quarter 2011 results and the strategy
execution update, with the following highlights:

  * Net profit doubled to €79 Mln in 4Q11;

  * Physical completion of Sines refinery almost concluded;

  * Currently evaluating the drill stem test (DST) results in Mamba North well;

  * Fourth producing well in Lula to be connected to the FPSO Cidade de Angra
    dos Reis until the end of 1Q12;

  * Gearing below 20% on a pro-forma basis, considering the Brazilian capital
    increase.




SUMMARY OF RESULTS - TWELVE MONTHS AND FOURTH QUARTER OF 2011

In 2011, Galp Energia's replacement cost adjusted net profit   of €251 million was
€55 million lower than in 2010 as the Refining & Marketing business segment
underperformed. Net profit of €79 million in the fourth quarter of 2011 was €40
million higher yoy.

  * Net entitlement production of crude oil and natural gas in 2011 was 12.1
    kboepd, of which 33% from Brazil; in the fourth quarter, 50% of net
    entitlement production of 13.0 kboepd came from Brazil;

  * Galp Energia achieved a refining margin of Usd 0.6/bbl in 2011 compared with
    Usd 2.6/bbl in 2010; in the fourth quarter of 2011, the refining margin was
    close to zero, influenced by the negative trend of refining margins in
    international markets;

  * In 2011 the oil marketing business was negatively impacted by the adverse
    Iberian economic context, with the fourth quarter volumes continuing to
    present a decreasing trend;
  *
  * Natural gas sold in 2011 rose 9% compared with 2010 to 5,365 million cubic
    metres, driven by sales in Spain and by the trading segment; in the fourth
    quarter of 2011, volumes sold rose 6% due to higher volumes in the trading
    segment;

  * RCA EBIT fell 13% in 2011 compared with 2010 to €394 million; in the fourth
    quarter of 2011, RCA EBIT of €110 million was up €46 million compared to
    fourth quarter of 2010;

  * RCA net profit of €251 million in 2011 equated to €0.30 per share, 32% of
    which was achieved in the fourth quarter of 2011;

  * In 2011, around 45% of total capital expenditure of €1,000 million was
    allocated into the refinery upgrade project.



All the documents related to the fourth quarter 2011 results, including the
excel files, are available at:
 www.galpenergia.com/EN/Investidor/Relatorios-e-resultados/result ..
trimestrais/Paginas/Resultados-do-ultimo-trimestre.aspx


Conference call for results presentation will be held today February
10 at 2:00 pm UK (3:00 pm CET). The conference call details are as follows:

UK:  +44 (0) 207 190 15 95
          +44 800 358 52 63 (toll free)

Portugal:  800 780 153


Kind regards,

Galp Energia
Investor Relations Division

Rua Tomás da Fonseca, Torre A
1600-209 Lisbon, Portugal
Tel: +351 217 240 866
Fax: +351 217 242 965
Email:investor.relations@galpenergia.com
www.galpenergia.com







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Source: Galp Energia. SGPS, S.A. via Thomson Reuters ONE

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