Galp adds to European refining optimism

Portuguese refiner reports stronger Q4 economics

Portugal’s Galp saw its Q4 2021 refining margin improve to $5.60/bl in the fourth quarter of 2021, up by 37pc quarter-on-quarter and by 250pc compared with just $1.60/bl in the final quarter of 2020. And its improved downstream performance appears to be part of a trend, with other European refiners to have posted Q4 numbers thus far also reporting higher margins (see Fig.1). Spain’s Repsol reported its marker having risen to $4.40/bl over the last quarter, similar to the $4.50/bl achieved by Poland’s PKN Orlen. Shell’s Q4 numbers show a similar trend, but at higher levels, with its most recent refining margin at $6.55/bl. Given the major’s more global focus, that could point to European refi