“Unfortunately we make very little money in Portugal”, says Galp’s executive president
The executive chairman (CEO) of Galp Energia, Andy Brown, contested this, Andy Brown, the idea of the European Commission to launch a tax on asifers, which said “secondamitos” about alleged prolonged earnings of the company.
“Unfortunately we make very little money in Portugal”, said the manager during a conference in Lisbon on the energy transition by CNN Portugal and PwC. Andy Brown noted that in the first half of the year, Galp incurred €135 million in cash related to cuts in Nigeria’s long-term gas supply, which the company had to compensate by buying energy on the market at higher prices.
Admitting that Galp ended up having good cash flows in the first half of the year, Andy Brown stressed that the group has 8 million euros of capital employed around the world, so the results for the first half of the year are equivalent to a return of around 10%, lower than that recorded in other businesses. Galp’s CEO also mentioned that 80% of cash flows from Galp come to do oil exploration and production in geographies such as Brazil and Angola.
The idea of creating a 2022 profit tax (the proposed Commission on a 2022 profit rate that exceeds by 20% an average additional profit from previous years) is preliminary A approved over three previous years by Andy Brown, who stressed that since 2005 in accumulated terms, Galp’s refining operation in Portugal has a cash flow negative, which only became positive this year. “This year, in the first half of the year, Sines made a profit for the first time”, conceded Galp’s CEO.
At the same conference, the manager thanked the Portuguese Government for recognizing, last week, that companies such as Galp are already taxed under the CESE – Extraordinary Contribution on the Energy Sector. “The tax burden in Portugal is very high”, laments Andy Brown.