Tensions in the Middle East and adverse economic conditions in Spain and Portugal were blamed for Galp’s sharp decrease in revenue.
Galp petrol station profits fell 21% in the first nine months of the year compared to the same period last year with the adjusted net income in the third quarter falling a full 42.3%.
The figures were released on Monday in a statement to the market in which the company refers to "supply constraints in some oil-producing countries, especially Iraq and Libya, and geopolitical tensions, particularly around Syria" and that in the Iberian market the volume of petroleum products sold in first months of the year dropped by 7% due to "adverse economic conditions."
In the third quarter of 2013 the Iberian market decreased "following the negative evolution of the Spanish market, which contracted 2%, while the Portuguese market contracted 1%."
Fewer cars on the road, fewer journeys and more careful driving by cost-conscious motorists have reduced the demand for fuel which not only depresses oil company profits but also decreases government tax revenues that have to be made up from higher taxes elsewhere.
