Galp Energia SWOT Analysis, USP & Competitors

Galp Energia

Parent Company

Galp Energia

Category

Oil and Gas

Sector

Energy & Power

Tagline/ Slogan

Your positive energy

USP

An energy company which drives the world a little further

Galp Energia STP

Segment

Enterprises and individuals with energy requirements

Target Group

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

Positioning

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

Galp Energia SWOT Analysis

Strengths

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

5. It has also invested in R&D for renewable energy

Weaknesses

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

Opportunities

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 the company’s performance

Threats

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 Deltana and Mariscal Sucre), in the exploration and production area

Galp Energia Competition

Competitors

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