In two sessions, Galp gained more than three billion euros after announcing that it discovered a reserve with 10 billion barrels of oil or equivalent in Namibia.
Galp overtook EDP as the most valuable listed company in Portugal on Tuesday. Galp now has a market capitalization of 15.5 billion euros, with EDP worth 14.93 billion euros. EDP Renováveis is now worth 13.15 billion euros.
Galp shares rose above 20 euros on Tuesday, while the PSI index rose 1.19%. The energy company’s shares rose 3.67% and passed the 20 euros mark, having ended the day trading at 20.06 euros. The positive feeling also stems from the discovery of oil reserves in Namibia.
Galp shares admitted to listing do not include the 58,079,514 shares, which represent 8% of the capital, held indirectly by the Portuguese State through Parpública.
In just two sessions, Galp valued more than three billion euros behind the discovery of a reserve of 10 billion barrels of oil or equivalent in Namibia.
The “Financial Times” reported on Tuesday that Shell, Total or Chevron could buy part of Galp’s stake in this area, which the company intends to sell.
Goldman Sachs (GS) announced on Tuesday that it raised Galp’s target price from 17 euros to 20 euros. The recommendation remains at ‘neutral’.
The North American bank also increased the valuation value of Galp’s discovery: from US$1.6 billion to US$4 billion, “reflecting the larger size of the field compared to initially expected”.
The GS points out that the discoveries in the PEL83 field will be in the first quartile of the Top Projects followed by the bank. “The PEL83 field is a substantial oil discovery with attractive economic potential based on Galp’s comments of high reservoir quality (low oil viscosity, good porosity, high pressure and high permeability), which suggests the field could be positioned well in the first quartile of our Top Projects: 12 dollars per barrel of capex, 7 dollars of opex, 13% effort rate, with the breakeven price being 47 dollars per barrel.
“Flows achieved during well testing reached a maximum limit of 14 thousand barrels per day, potentially positioning Mopane as an important commercial discovery. In the Mopane complex, and before carrying out additional exploration and appraisal wells (…) the estimate is 10 billion barrels of oil or equivalent, or higher”, according to the company.
Galp is the operator of this area (80%) in partnership with two local partners: the state oil company NAMCOR and Custos, owned by the Canadians Sintana, (each with 10%).
Galp closed Monday’s session up 20% after announcing, on Sunday, a reserve of at least 10 billion barrels of oil in the Mopane area off Namibia.
On Monday, the Lisbon stock exchange recorded the biggest daily increase since November 2020, while Galp recorded the biggest daily gain since 2007.
Looking at PSI’s performance on Tuesday, among the listed companies that advanced the most, Jerónimo Martins followed, by 2.33%, to 18.88 euros, while BCP gained 1.50% and reached the 0.3248 euros.
The biggest drop was that of Ibersol, in the order of 0.56%, with the shares ending the day at 7.04 euros.
Also with regard to European counterparts, the positive feeling was evident. The sharpest increases were led by Italy, which gained 1.89%, as well as Spain, at 1.71%, and Germany, at 1.58%. The aggregate Euro Stoxx 50 index added 1.43%, while France rose to 0.81%. The United Kingdom recorded an increase of 0.17%.
The results season continues in the USA and, in the technology sector, the highlight is the appreciation of SAP, in reaction to quarterly accounts. Retail JD Sports also had a positive session, after announcing an acquisition for expansion in the USA. This Wednesday, the highlight was the release of results from the technological company Meta, whose shares increased in value the day before.
