Portugal's Biggest Oil and Gas Company Has Cut Its Output Growth Forecast

Galp, Portugal's largest oil and gas company, recently cut its forecast for oil and gas production growth this year, ACCORDING to S&P Global Platts.

Galp had previously forecast production growth of 13 percent to 17 percent this year, according to the company, but now expects production to grow only about 10 percent for the full year due to the combination of the COVID-19 outbreak and the recession.

In fact, Galp announced in April that it would cut its capital expenditure from 1.2 billion euros a year to about 600 million euros a year between 2020 and 2021.

It also cut production at two Portuguese refineries in the second quarter of this year. The company reported that its refineries were operating at 45 per cent capacity in the second quarter, while refining profits fell 39 per cent year on year and product sales fell 43 per cent.