LISBON, March 15 (Reuters) - Portuguese oil company Galp Energia cut its spending target for the next five years by 15 percent due to low world oil prices, and it also trimmed its earnings growth forecast while keeping its production targets unchanged.
Galp also said on Tuesday it will abandon its policy of increasing dividend payouts by 20 percent a year from 2017, when it will fix a flat payout of 0.5 euros a share.
Galp, which is still largely a refiner, has stakes in various large oil fields off Brazil’s coast and has been pumping up its oil and gas production. It said it expects working interest production to grow at a rate of 25-30 percent a year until 2020, the same as under its previous plan until 2019.
In a capital markets day presentation, Galp estimated annual average capital expenditure until 2020 at between 1 billion euros and 1.2 billion euros, down from 1.2 billion to 1.4 billion euros under its previous plan for 2015-2019. Last year, Galp reduced its investment plan by a fifth.
It still expects to invest between 1.1 billion and 1.3 billion euros this year after 1.24 billion euros last year. (Reporting By Andrei Khalip and Shrikesh Laxmidas)