Galp’s 4Q refining margins rebound but crude runs slump

Galp’s 4Q refining margins rebound but crude runs slump

Madrid, 2 February (Argus) — Portuguese integrated oil firm Galp struggled to take full advantage of a sharp rise in refining margins in the fourth quarter of last year after maintenance and an unplanned shutdown slashed runs at its only operational refinery.

Galp said its refining margin widened to $5.60/bl in October-December, up by $1.50/bl compared with the previous three months and more than three times higher than the fourth quarter of 2020. The increase reflects an "improved international market context despite operational constraints during the quarter", the company said in a trading update today.

Galp's 220,000 b/d Sines refinery processed 148,000 b/d of crude and other raw materials in October-December, down from 242,000 b/d in the previous three months. The firm processed 255,000 b/d in the fourth quarter of 2020, when its 110,000 b/d Porto refinery was still operating. Galp closed Porto in the first quarter of last year.