Report
Ahmed Ben Salem

GALP : Growth vs shareholder returns, one or the other

We are initiating coverage on the Portuguese oil company Galp with a Neutral recommendation and a target price of € 16.5. Galp offers the most robust production growth in the sector thanks to its presence in Brazil, one of the most attractive oil & gas basins in the world. However, in the short term, growth capex is weighing on FCF and shareholder returns, which are currently the main areas of interest for investors. Galp’s valuation is less demanding than 18 months ago but the s...
Underlying
GALP Energia SGPS SA Class B

Galp Energia is a holding company. Through its subsidiaries, Co. operates in the following segments: exploration and production, with activities relating to exploration, development and production of hydrocarbons, particularly in Angola, Brazil and Mozambique; refining and marketing, which owns refineries in Portugal and also includes activities relating to the retail and wholesale commercialization of oil products; and gas and power, which covers the purchasing, commercialization, distribution and storage of natural gas and electric and thermal power production. As of Dec 31 2014, Co. had proved and probable reserves of 638.0 million barrels of oil equivalent.

Provider
Oddo BHF
Oddo BHF

​Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.

Analysts
Ahmed Ben Salem

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