⁍ Portugal’s Galp Energia narrowed its losses in the third quarter.

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⁍ It will sell a controlling stake in its natural gas distribution business in Portugal.

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⁍ The result was impacted by weaker demand which affected oil and fuel prices.

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– Portugal’s Galp Energia is selling a 75% stake in its natural gas distribution business to Allianz Capital Partners for $435 million, the company announced Monday. The deal, which is expected to be completed in the first quarter of next year, will reduce Galp’s stake to just 2.49%, Reuters reports. Galp said it was selling the business, which distributes natural gas in Portugal, in order to “crystallize value from a non-core asset.” The company reported an adjusted net loss of $27 million in the third quarter, compared to a profit of 101 million a year earlier. Galp’s oil output rose 6%, but earnings before interest, taxes, depreciation, and amortisation fell 35% from a year ago to 401 million euros. “In one of the most difficult years ever for this industry, considering the recent relevant solar acquisition, Galp is almost free cash flow neutral in the first 9 months of 2020,” CEO Carlos Gomes da Silva said. Galp suspended production in April at its Sines and Matosinhos refineries. It resumed production in June, but resumed production at Matosinhos again on October 10. “This suspension will likely last most of the quarter,” Gomes da Silva said. “In the refining and midstream arena, it’s really, really tough, tough times, especially for refining.”