MOSCOW (MRC) -- Repsol, Spain’s largest oil company, has reported a 20% drop in second-quarter earnings as lower crude prices outweighed higher refining margins and led to a loss at its upstream operations, as per Hydrocarbonprocessing.
Adjusted net income fell to EUR312 million (USD342 million) from 390 million euros a year earlier, the Madrid-based producer said Thursday in a statement. That matched the average estimate of 19 analysts surveyed by Bloomberg.
Repsol has relied on some of Europe’s highest refining margins to weather the slump in oil prices that led the industry to cut billions of dollars in investments. The company said ramping up projects in Brazil, the US, Bolivia and Peru partly offset a halt in Libyan production.
Repsol’s refining margins, or the profit from turning a barrel of oil into fuels, rose to USD9.10/bbl in the quarter from USD3.10/bbl a year earlier as lower crude prices reduced costs for processors.
Oil and natural-gas production climbed to 525,000 boed from 338,000 bbl a year earlier, after Repsol acquired Talisman Energy Inc. earlier this year.
Second-quarter earnings before interest, taxes, depreciation and amortization jumped 39% to EUR1.42 billion.
As MRC informed earlier, in June 2014, Mexico's national oil company Pemex announced that it would sell a 7.9% stake in Spanish oil firm Repsol, worth about 2.2 billion euros (USD3.0 billion). The sale ends a long relationship between Pemex and Repsol that had run into trouble in recent years over disagreements on policies ranging from top management to the handling of Repsol's investments in Argentina.
Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC