Government guarantees to be aware of Galp’s “future partnerships”

A minister of Environment and Energy today assured that the government will continue “attention” to “future partnerships” of Galp, admitting the “receive” that the failed business with Moeve would withdraw the country’s only refinery from national control.

“ We followed very closely everything that went on. On the one hand, we think it is important that refineries have critical mass to invest, because there is a whole decarbonisation process and new elements that need to be manufactured for the decarbonisation of society. But, on the other hand, there was all the fear of being able to escape national control the only refinery we still have,” said Maria da Graça Carvalho.

In statements to journalists on the margins of the 3rd National Meeting of the Covenant of Mayors for Climate and Energy, organized by ADENE – Agency for Energy in Torres Vedras, the minister said that the Government will now “follow future developments” of the failure of the business between Galp and Spanish Moeve.

“ Let's keep up. It is also said that they are open to other partnerships and we will therefore have to keep an eye on future partnerships,” he said on the day that Galp announced the end of negotiations with Moeve for a possible combination of fuel refining and marketing business.

Asked about the annual increase of 68% of Galp’s profit in the third quarter, to EUR 682 million, Maria da Graça Carvalho said it confirms that the executive made “the right decision” by intending to tax the extraordinary profits of oil companies.

“There are companies that have had extraordinary profits due to the situation and, therefore, we think that, even for the sake of social justice, they should be taxed,” he said, adding, hoping that the government’s bill in this sense “passes soon into the Assembly of the Republic.”.

In a statement, the Portuguese oil company explained that, following the non-binding agreement announced on 8 January with Moeve’s shareholders, Mubadala Investment Company and Carlyle Group, the parties maintained in-depth negotiations but failed to reach an understanding to implement the operation.

Galp also ensured that the end of the negotiations will have no impact on its current operations “nor on the company’s confidence in the potential to create autonomous value of its ‘downstream’ portfolio”, refining and marketing businesses, maintaining the commitment to the transformation of industrial and commercial activities and opening up to future opportunities for consolidation of the sector.

Also today, during a telephone conference with analysts on the results of the third quarter, the Executive Co-President of Oil has stated that Galp is not seeking a new partner for refining and marketing business, but remains available to examine future opportunities.

“ We will be prepared to analyze potential operations, but at the moment we are not actively looking for a transaction in the market ", said João Diogo Marques da Silva.

In today’s statements to journalists, the Minister for Environment and Energy also said that the government sees “very well” Galp’s bet “to continue investing in green products, namely green hydrogen and advanced biofuels”.

And he said: “There is another subject in the statement [disclosed today by oil] that we also like, that Galp remains committed to separating the retail from the refinery, so the retail part of the gas stations, the industrial part, [and] create a company for the refinery.”.

“ We think that will also be useful, because this allows us to focus the attention of the state in the refinery ", he added.