Galp Energia pushed its first‑quarter adjusted replacement‑cost net profit up 41% from a year earlier, reaching 272 million euros. The Portuguese oil‑and‑gas company said the jump stemmed from stronger production in Brazil and a rally in world oil prices sparked by the Middle East conflict. Analysts had penciled in 277 million euros.

Adjusted earnings in Galp’s core upstream unit leapt nearly 80% to 685 million euros, reflecting the 23% rise in quarterly production versus the same period last year. Meanwhile, net profit slipped to an 111‑million‑euro loss after the group booked almost 400 million euros in charges tied to unsettled financial derivatives.

These results show how geopolitical tensions can lift commodity prices and, in turn, boost earnings for companies with strong asset bases. Investors will now focus on whether the production gains in Brazil can sustain the upside and how derivative exposure might impact future profitability.

Galp’s management highlighted the resilience of its upstream portfolio amid volatile markets, noting that the company has maintained disciplined capital spending. The firm’s ability to navigate price swings and derivative losses will be closely monitored by analysts assessing its long‑term shareholder value.