Galp Energia's quarterly core profit rises 11%, beating estimates

By Sergio Goncalves

LISBON, Oct 27 (Reuters) - Portugal's Galp Energia GALP.LS reported an 11% increase in third-quarter core profit on Monday, beating analysts' estimates, and said it was likely to exceed its full-year guidance.

The energy firm reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 911 million euros ($1.06 billion) for July-September. That surpassed the company-provided consensus of 865 million euros, helped by a jump in refining margins and robust gas trading.

Its shares rose 3% by Monday afternoon.

Galp said in a statement that it is "well positioned to surpass" its current guidance of a full-year adjusted EBITDA of 2.7 billion euros.

Galp's adjusted net profit rose 53% to 407 million euros in the quarter, beating the 321 million-euro estimate.

The refining margin nearly doubled to $9.5 per barrel from $4.7 a year earlier.

The start of LNG deliveries from Venture Global's VG.N Calcasieu Pass export facility in Louisiana also contributed positively, "supporting a 42% rise in natural gas volumes traded", Galp said.

Its share of oil and gas production from its projects in the third quarter increased by 2% to 115,000 barrels per day, but Brent crude prices fell to an average of $69.1 per barrel in the quarter from $80.3 last year, leading to a 14% drop in EBITDA for that segment.

MOPANE STAKE SALE

Galp is in advanced talks with a shortlist of preferred bidders to sell half of its 80% stake in its offshore Mopane field in Namibia, which has estimated oil-in-place of more than 10 billion barrels.

Co-CEO Maria Joao Carioca told a conference call that Galp was focused on "establishing a strong partnership that will allow us to accelerate and prioritise Mopane".

She would not name any potential candidates, saying only that there were several and there has been "good progress so far" after conversations with them.

She said it was still "very early to close on what could be a deal structure", but if it were to involve eventual asset swaps, a partner would have to provide "clear visibility on the type of return we're getting out of the Mopane assets".

($1 = 0.8575 euros)