REPSOL NET INCOME €572 MLN
Repsol posts an adjusted net income of 572 million euros
- Repsol's business units (Upstream and Downstream) saw improved results driven by measures to increase the company's efficiency and savings. The positive results are especially significant in a context marked by a sharp fall in crude oil and gas prices (Brent by 37% and Henry Hub by 30%).
- The Upstream business unit's earnings (Exploration and Production) improved by 207 million euros, and Downstream results improved by 22 million euros, which reflects the resilience of Repsol's businesses despite crude oil and gas prices that are at their lowest point in 12 years.
- Adjusted net income was 572 million euros, compared with 928 million in the same quarter of the previous year, which included exceptional earnings of 500 million euros due mostly to the company's dollar position after receiving funds for the expropriation of YPF, subsequently used for the acquisition of Talisman.
- The company's EBITDA, calculated at current cost of supplies (CCS), was 1.242 billion euros, an increase of 6% over the first quarter of 2015.
- Average hydrocarbon production reached 714,200 barrels of oil equivalent per day, double that produced during the first quarter of 2015.
- The Downstream business unit increased its adjusted net income by 4% to 556 million euros.
Repsol posted an adjusted net income of 572 million euros in the first quarter of 2016, compared with 928 million in the same quarter of the previous year, which included exceptional earnings of 500 million euros due mostly to the company's dollar position after receiving funds for the expropriation of YPF. The cash was subsequently used for the acquisition of Talisman.
The company's EBITDA at CSS, calculated at current cost of supplies, was 1.242 billion euros, an increase of 6% over the first quarter of 2015.
Measures implemented by Repsol to increase efficiency and savings in recent months led the company to achieve positive results despite low oil prices. Both the Upstream (Exploration and Production), and Downstream (Refining, Chemicals, Marketing, Trading, LPG and Gas & Power) business units saw improved results compared with the first three months of 2015, which demonstrates the company's strength and resilience.
During the quarter, average Brent prices fell to a 12-year low (26.21 dollars per barrel on February 11th). Between January and March, the average Brent price was 33.9 dollars per barrel, 37% less than the same period of the previous year.
Despite the market situation, the exploration and production businesses increased adjusted net income by 207 million euros from the first three months of 2015. In addition, production increased to 714,200 barrels of oil equivalent per day (boe/day), double the production in the same period of the previous year.
For its part, the Downstream business unit increased its adjusted net income by 4%, supported by the strength of the refining area and excellent performance of the chemicals unit, where efficiency plans developed allowed it to take advantage of improved market conditions.
Net debt at the end of the quarter remained steady at 11.978 billion euros, while the company's liquidity was more than twice the amount of its gross short-term debt maturities.
Also worth highlighting are the changes made to Repsol's management and organizational structure during the first quarter, which will allow the company to continue advancing on the challenges and opportunities arising from the integration of Talisman and the new environment the sector faces.