Portuguese energy giant Galp Energia reported a 67% surge in third-quarter adjusted earnings on Monday, driven by record refining margins, higher oil prices and growing production from its offshore operations in Brazil.

The company reported adjusted EBITDA of €1.52 billion, up from approximately €910 million a year earlier and beating analyst expectations of €1.47 billion.

Adjusted net income climbed 68% to €682 million, compared with analysts’ forecasts of €634 million.

Galp’s refining business was a major contributor to the stronger results, with realized refining margins jumping to $34 per barrel of oil equivalent, compared with just $9.50 a year earlier, as elevated diesel and jet fuel prices continued to support European refiners.

The company’s Industrial and Midstream division generated €639 million in adjusted EBITDA, more than double the €315 million recorded a year earlier.

Upstream earnings also strengthened considerably, rising to €708 million from €464 million, supported by higher oil and gas prices and increased production from the Bacalhau offshore field in Brazil.

Following the results, Galp raised its full-year 2026 adjusted EBITDA guidance to approximately €5 billion, up from €4 billion previously, while increasing its operating cash flow forecast to €3.9 billion from €3 billion.

The company also lifted its assumed Brent crude price to $90 per barrel from $80, reflecting stronger market conditions.

Net debt stood at €1.43 billion at the end of September, with leverage falling to 0.35 times adjusted EBITDA.

Despite the strong earnings report, Galp shares fell around 9% after the company separately announced that negotiations to combine its downstream operations with Spanish energy group Moeve had ended without an agreement.

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