Description
SWOT ANALYSIS OF GALP ENERGIA

Galp Energia

Parent Company

Galp Energia

Category

Oil and Gas

Sector

Energy

Tagline/ Slogan

Your positive energy

USP

An energy company which drives the world a little further STP

Segment

Enterprises and individuals with energy requirements

Entities which require motor, aviation and marine fuels, natural gas, LPG and chemicals etc., and power, electricity, lubrication services Target Group etc.

Portugal’s oil and natural gas integrated operator, the second largest Positioning in the Iberian Peninsula SWOT Analysis

1. Its vertically integrated business model helps it earn revenues from both upstream and downstream activities 2. Its significant upstream operations and presence in the entire upstream value chain is a major strengthening force 3. International presence in 15 countries with a workforce of nearly 7000+ 4. The company has several operations like natural gas supply, exploration, refining, storage, logistics Strength 5. It has also invested in R&D for renewable energy

1. Poor cracking refinery margins and a rather slow improvement of Weakness operational performance have hurt the company’s profit prospects 2. Debt covenants which impair its ability to cross certain operational

thresholds

1. Offshore prospects in West African Nations like Namibia, Angola and in offshore Brazil (Santos, Potiguar basins) which have potential for newer oil and natural gas discoveries 2. Acquisitions of Agip’s and ExxonMobil’s operations in the Iberian market (for oil products) and of Eni’s stakes in the natural gas distribution companies Setgás and Lusitaniagás have further boosted Opportunity the company’s performance

1. Volatile global prices of oil and gas , in whose exploration and production the company is engaged in, can adversely impact its business 2. Intense competition from other larger firms in the industry, which have larger reserves, revenue and outreach, can make it lose its market share 3. Stringent emission standards arising from governmental laws and regulations can adversely impact its operations and reduce revenue 4. Venezuela’s socialist government has nationalized many assets which is a big threat to Galp Energia as it has stakes in two projects there (Orinoco Oil Belt project and the LNG projects at Plataforma Threats Deltana and Mariscal Sucre), in the exploration and production area Competition

1. BP Plc. 2. Cepsa 3. TOTAL S.A 4. ExxonMobil Corporation Competitors 5. Repsol YPF, S.A



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