"Galp's deal in Namibia makes more sense in the current context than if we were in a golden economy"
Galp Energia has completed a major stake swap with TotalEnergies in Namibia, a move that triggered a sharp drop in its share price. The deal, which did not involve cash, has drawn mixed reactions from investors and analysts alike. Despite the market’s negative response, some experts argue the agreement holds strategic value for the company’s future.
Galp’s shares have fallen by nearly 25% since reaching a peak in November. The decline followed the announcement of its stake-exchange deal with TotalEnergies, which saw no money change hands. Currently valued at close to €10 billion, Galp remains the third-largest company listed on the Lisbon stock exchange.
João Queirós, head of trading at Banco Carregosa, downplayed the share drop as a natural correction after a strong rally. He stressed that the decline did not reflect poor management decisions. Instead, Queirós defended the deal’s logic, particularly in today’s unpredictable global environment. According to him, the partnership with TotalEnergies could offer Galp long-term advantages. While the market reacted negatively, Queirós suggested the agreement might prove beneficial as economic and geopolitical uncertainties persist.
The stake swap with TotalEnergies has shaken investor confidence in the short term, pushing Galp’s valuation lower. However, analysts like Queirós maintain that the deal aligns with broader strategic goals. The company’s position as one of Portugal’s largest listed firms remains unchanged for now.
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