LISBON, July 25 Reuters Portuguese oil and gas company Galp Energia reported a 90 jump in adjusted secondquarter profit on Monday, citing soaring oil prices and a sharp increase in its refining margin.

Rapid recovery in demand after pandemic lockdowns and a surge in energy prices driven by Russia39;s invasion of Ukraine have boosted profits for oil companies around the globe.

Galp said the company successfully captured the favourable market conditions in upstream activities, refining and renewables. Upstream refers to exploration and production.

Adjusted net profit was 265 million euros 270 million in the three months to June 30, up from 140 million euros a year earlier and above the 224 million euros expected by 21 analysts polled by the company.

Galp39;s adjusted upstream core profit rose 88 to 878 million euros, boosted by Brent crude prices that rose 65 year on year to 113.9 a barrel.

The higher prices more than offset a drop in its share of oil and gas production from projects in which it has the stake, down 7 at 119,600 barrels of oil equivalent per day.

Its refining margin jumped to 22.30 a barrel in the quarter, up from 2.40 in the same period last year, when Portugal was under COVID19 restrictions, and 6.90 in the previous quarter.

Galp, which also runs renewable energy plants, said sales of refined products direct to clients rose 22 year on year to 1.9 million tonnes.

1 0.9810 euros

Reporting by Sergio Goncalves Editing by David Goodman

Source Reuters