Portugal's Galp Energia reported a 68 percent rise in third-quarter adjusted net profit, then saw its shares fall sharply after talks with Spain's Moeve to combine refining, chemicals and fuel retail businesses collapsed.
Portugal's Galp Energia reported a 68 percent rise in third-quarter adjusted net profit on Monday, beating expectations as record refining margins and higher oil prices amid the Middle East conflict boosted earnings. Adjusted net income rose to 682 million euros in the July to September period, from 407 million euros a year earlier, above a company-compiled consensus forecast of 634 million euros from 18 analysts.
Adjusted earnings before interest, taxes, depreciation and amortisation rose 67 percent year on year to 1.52 billion euros. The company also raised its 2026 core earnings guidance to about 5 billion euros, from about 4 billion euros previously, and its operating cash flow guidance to about 3.9 billion euros, from about 3 billion euros.
The same morning, Galp said talks with Spain's Moeve to combine their refining, chemicals and fuel retail businesses had collapsed. Galp shares fell 7.5 percent in morning trading, putting the stock on course for its biggest one-day drop in 11 months, and Reuters later reported an 8.5 percent fall. Galp chairwoman Paula Amorim said the strategic rationale remained compelling but the parties were unable to achieve the commercial alignment needed for an enduring partnership. Moeve chief executive Maarten Wetselaar said his company was fully focused on its transformation towards low-carbon businesses.
The profit, guidance and deal-collapse figures come from Galp's own reporting as carried by Reuters, with the two companies' statements quoted in that coverage. Neither company gave specific reasons for the talks failing, so the reason for the breakdown remains unconfirmed beyond the commercial-alignment explanation. The share fall is reported consistently, although the exact intraday percentage varies with the time of the report.
The episode separates Galp's trading performance from its deal prospects. Record refining margins lifted the quarter, but investors had expected a deal early in the fourth quarter to remove what analysts at RBC described as a stumbling block for a takeover thesis for Galp. The next markers are Galp's full-year results and any new statement from either company on whether downstream cooperation returns in another form.