Spanish oil company Repsol in 2017 recorded the highest profit in six years boosted by higher production and increase in oil price.
According to Repsol’s earnings report on Wednesday, the company’s net income in 2017 increased by 22% and the adjusted net income, which measures the performance of business’, increased by 25% to 2.405 billion euros. Both incomes are the highest in the last six years.
Repsol posted a net income of 2.121 billion euros in 2017 compared to 1.736 billion euros it earned in 2016.
The Upstream unit earned a profit of 632 million euros, an increase of 580 million euros compared to the 52 million euros registered in 2016.
This improvement was the result of measures adopted in its synergies and efficiency plan, the resumption of activity in Libya and rising international benchmark prices.
The average price of raw material benchmarks remained low in 2017: Brent was 54.2 dollars per barrel and Henry Hub stood at 3.1 dollars per Mbtu.
In the second half of the year the market reflected an upward trend in prices, and Brent closed the financial year above 66 dollars per barrel, its highest price since June 2015.
The company increased its production from 690,000 barrels of oil equivalent per day in 2016 to reach an average of 695,000 boe/d in 2017 thanks to the resumption of activity in Libya, increases obtained in various assets and the launch of new projects, such as Juniper (Trinidad and Tobago); Lapa and Sapinhoa (Brazil); and Shaw, Cayley and Flyndre (United Kingdom).
This level of production was the highest for Repsol since 2011.
With this figure, Repsol exceeded the objective of 680,000 barrels of oil equivalent per day it had set for 2017 while also renewing its reserves, with an organic replacement rate of 93%.
The company reduced its debt by 23% to 6.267 billion euros at the end of the year.
Offshore Energy Today Staff