Portugal’s energy giant Galp has admitted that the conflict in the Middle East could push up operational costs, particularly shipping and insurance costs.
“It’s obvious that in the long term we will have indirect impacts, even if only from the discussion that has already begun about insurance and additional shipping costs,” said the co-CEO of the oil company, Maria João Carioca in statements to the business daily Negócios, emphasising that the company is monitoring the situation without, for now, providing financial estimates.
“It’s still too early,” she added, explaining that the energy company is working with different scenarios and sensitivity analyses.
Despite the geopolitical uncertainty, the manager assured that the supply of crude oil remains guaranteed and explained that the company has begun redirecting oil shipments to avoid the Strait of Hormuz, one of the main arteries of world oil trade, following the military escalation in the Middle East, in a preventive decision aimed at ensuring operational continuity, although she guarantees that Galp is not facing direct material impacts from the crisis.
