Galp Energia Sa Unsp/Adr

Good morning ladies and gentlemen. Welcome to GALP's third quarter 2026 results presentation. I will now pass the floor to Joao Goncalves Pereira, Head of Investor Relations.

Good morning everyone and welcome to GALP's third quarter 2026 Q&A session. I'm joined today by our co-CEOs Maria Joao Carioca and Joao Marques da Silva, as well as by the remaining executive team. But, before passing the mic for some quick opening remarks, let me start with our usual disclaimer. During today's session, we will be making forward-looking statements that are based on our current estimates. Actual results could differ due to factors outlined in our questionnaire statement within the published materials. With this, João Diogo, the floor is yours. Thank you, João. Before turning out to our quarterly performance, I would like to briefly address This morning's announcements. As disclosed, the discussions with Moeve have concluded without an agreement. Throughout this process, the Departments remained committed to exploring the potential benefits of combining downstream activities to create additional value to our shareholders. And we continue to believe that consolidation can create opportunities to increase scale, strengthen competitiveness, and support future growth. At the same time, our confidence in the standalone value of our downstream business has never changed. While the strategic rationale for consolidation remains compelling, value discipline will always guide our decisions. We remain open to opportunities, but we only deliver them on terms that clearly create long-term value for our shareholders. To the quarter, strategy execution remains firmly on track. In Brazil, Bacalhau's ramp-up is progressing as planned, with production already reaching peak levels on several days. In Namibia, we are about to start drilling the next exploration and appraisal campaign in Mopé. These milestones reinforce the core pillar of Calt's investment case, visible, tangible growth from our AppStream portfolio. Maria Joao, would you like to add a few words?

Thank you, Joao. Yes, I would. And good morning, everyone. So let me start by reinforcing Joao's message regarding this morning's announcement. Capital discipline on value accretion is simply non-negotiable. So ultimately, the deal didn't go through simply because we were unable to align on a value-creating partnership. That said, GAL's investment case and capital allocation priorities remain strong and distinctive. We continue to be fully confident on the standalone value of our downstream businesses, and our equity story continues to offer a quite unique combination of growth, resilience, and optionality. So this third quarter speaks precisely to the strength and resilience of our portfolio. Despite continued disruption across global energy markets, our asset base successfully captured the volatility and actually delivered another strong operational performance. This performance translated into rather robust cash generation, accommodating both the higher working capital requirements and the acquisition of the wind portfolio announced in July. Net debt remained broadly stable and our balance sheet position was further reinforced. Following another strong quarter and updating our assumptions for the remaining of the year, we once again raise our full year guidance. We now expect EBITDA of around 5 billion and operating cash flow close to 3.9 billion. Our focus remains clear, delivering operational excellence, executing our strategy with discipline, and maximizing value creation. With that, we're happy to take your questions. Operator, we may start the Q&A session.