In the first half of the year, Spain's Repsol obtained a net income of €1.546 billion, compared to the €1.056 billion earned in the same period of 2017; representing a 46 percent increase year-on-year, and the company’s highest net income recorded for this period in the last ten years.
"In addition, adjusted net income, which specifically measures the progress of Repsol’s businesses and excludes inventory effects, was €1.132 billion, a 12 percent increase compared with the €1.015 billion earned between January and June 2017," the Spanish oil company said in a press release on Thursday.
Repsol said the success was driven by "the flexibility afforded by its integrated business model and the efficiency and value-creation measures" it implemented.
The performance of the upstream unit, including exploration and production, was positive with earnings of €647 million in the first six months of the year, 91 percent higher than the same period last year.
"This figure is the highest recorded by Repsol in the first half of the year since 2012, when Brent prices averaged $113.6 per barrel, compared to an average of $70.6 per barrel in the first six months of 2018," Repsol said.
"The implementation of the synergies and efficiencies program, increased production and higher crude prices enabled better performace from the unit," it added.
The earnings of the downstream unit comprising refining, chemicals, marketing, lubricants, trading, LPG, gas and power, stood at €762 million in the same period, which, Repsol said, was supported by significant improvements in the areas of marketing, trading, LPG, and gas and power.
"On the other hand, the Refining and Chemicals areas were affected by the weakness of the dollar against the euro, a more complex international environment, and maintenance shutdowns at some industrial facilities," it noted.
-Hydrocarbon production up six percent
The company said it increased its hydrocarbon production by 6 percent during the first six months of the year, reaching an average of 724 thousand barrels of oil equivalent per day.
EBITDA (Earnings Before Interest, Taxes, Depreciation, And Amortization) stood at €3.811 billion over the same period, 23 percent higher than the €3.108 billion earned between January and June 2017.
Repsol’s net debt, on the other hand, decreased by 64 percent in the year through June 30 to €2.706 billion.
"During this period Repsol's shares saw a 14 percent increase in value, outperforming the [Spanish benchmark stock index] Ibex 35 by 18 percentage points,” the company said, adding it also showed one of the best performances among its peers in Europe.
By Hale Turkes