Galp and Moeve fail to agree merger of refining and distribution operations

Galp and Moeve were unable to agree on a merger of their refining and distribution operations after several months of negotiations, Galp announced on Monday. The Portuguese oil and gas company emphasized that this outcome does not affect its operations or its standing in the industry. Galp possesses an exceptionally strong position with a highly attractive upstream growth profile, robust industrial and commercial businesses, and a diversified portfolio including renewables and substantial trading activities.

Supported by a solid balance sheet and strong cash-flow generation, Galp is well-positioned to continue growing, investing, and creating value, according to Paula Amorim, chair of Galp’s Board of Directors. Moeve's CEO, Maarten Wetselaar, stated that the proposed combination with Galp was an opportunity to accelerate value creation but that the company's strategy was never contingent on the deal.

Following extensive discussions, no commercial agreement could be reached between the two companies. Moeve remains focused on executing its transformation with financial discipline and generating sustainable long-term value. Galp's downstream business is bolstered by a leading retail network in Portugal and a significant portfolio of energy transition projects in Sines, including Europe's largest green hydrogen production project using electrolysis and a biofuels production unit.

Galp's quarterly results and financial disclosure revealed a notable 68% year-on-year increase in net profit to 682 million euros, driven by record oil and natural gas production in Brazil, strong export performance, and robust oil and gas trading activities in international markets.