Analysts also increased the valuation of Galp’s discovery to four billion dollars.
Goldman Sachs (GS) announced today that it raised Galp’s target price from 17 euros to 20 euros. The company is today rising more than 2% to 19.75 euros on the Lisbon stock exchange. 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.
Galp closed Monday’s session up 20% after announcing a reserve of at least 10 billion barrels of oil in the Mopane area off Namibia.
The Lisbon stock exchange yesterday recorded the biggest daily increase since November 2020, while Galp recorded the biggest daily gain since 2007.
On Monday, Galp’s market capitalization increased by 2.7 billion euros with the new discovery in Namibia to almost 15 billion euros. The oil company will invest 150 million euros in Namibia this year to search for oil.
Amorim Energia’s position (55% family and 45% Sonangol) was worth 4.4 billion euros and became worth 5.3 billion euros. The Amorim family’s position alone rose from 2.4 billion euros to 2.94 billion, while Sonangol’s position increased from 1.98 billion to 2.4 billion. The participation of Parpública (the Portuguese State) rose from 994 million to 1,200 million euros.
