Galp quarterly loss halves, to sell gas distribution stake

  • Date: 27-Oct-2020
  • Source: Zawya
  • Sector:Oil & Gas
  • Country:GCC
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Galp quarterly loss halves, to sell gas distribution stake

Galp said it had agreed to sell a 75.01% stake in the gas distribution business for 368 million euros ($435 million) to Allianz Capital Partners.That equates to around 13 times the estimated EBITDA for 2020 and will reduce Galp's stake to just 2.49%.The deal, which the company said was "crystallizing value from a non-core asset", should be completed in the first quarter of next year, CEO Carlos Gomes da Silva said on a conference call.Galp shares were down 3.3% as of 1321 GMT to lag Lisbon's stock index which was off 1.7%.The firm's refining margin fell to a negative $0.70 per barrel in the quarter from $3.90 a year earlier.Gomes da Silva said it would maintain its "cautious outlook for the months ahead", underlining refining as a particularly challenging area."We'll