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2015-10-06 19:25:00

REPSOL WILL CUT 1,500 JOBS

REPSOL WILL CUT 1,500 JOBS

Spain's Repsol said Thursday it will axe 1,500 positions over the next three years as part of a cost-cutting effort. The cuts represent about six percent of the company's workforce and staff have already been notified of the plan. The company declined to comment on how the cuts will be distributed throughout its operations.Repsol will share a new strategic plan with investors later this month.

The company agreed to sell part of its piped gas business to Gas Natural Distribución and Redexis Gas for about $729.19 million on Wednesday.The various operations amount to a total of €651.5 million euros and will generate an estimated after-tax capital gain of €367 million , or $411 million. The agreements are expected to be completed in early 2016, subject to regulatory approvals.

The company added that its portfolio of piped gas assets, with capacity to supply 141,535 regional customers, will continue to operate normally.

Repsol also recently sold stakes in three exploratory blocks in offshore Canada to BG Group for an undisclosed sum.

With these transactions, Repsol has surpassed the goal it set after its $8.3 billion purchase of Alberta-based Talisman Energy to divest from $1 billion of non-strategic assets set.

Repsol has boosted output to a record 700,000 barrels of oil equivalent a day this year, a 97 percent jump from its average 2014 production of 355,000 boepd.

Despite low crude prices, Repsol posted an adjusted net income of 1.24 billion euros, or $1.39 billion, during the first half of the year, a 35 percent jump from the first half of 2014.

petroglobalnews.com

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Tags: REPSOL, OIL, PRICES

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