Spanish national oil company Repsol posted net income of 631 million euros in the first quarter of 2013, a rise of 1.6% from the year-earlier period at current cost of supply. Calculated based on MIFO criteria, net income was 634 million euros.
The improved results are based on a strong performance from all of the company’s business units. Operating income from continued operations at current cost of supply rose 19% to 1.287 billion euros.
The Upstream unit continued its growth trend, performing well during the quarter. Production rose 11.4% following the start-up of five of the company’s key projects outlined in the 2012-2016 Strategic Plan. Especially significant is the start-up of the giant Sapinhoá field in Brazil, one of the largest developed in that country to date. Greater activity at Trinidad and Tobago also helped boost output.
In the first quarter of 2013, the Upstream unit accounted for more than half of the company’s operating income, contributing 655 million euros, slightly more than the same period of 2012.
Production rose 11.4% from the previous year to 360,300 barrels of oil equivalent per day. The rise is due to the contribution of five of the key projects from the 2012-2016 strategic plan already producing: United States (Mid-Continent), Spain (Lubina and Montanazo), Brazil (Sapinhoá), AROG in Russia and Bolivia (Margarita). Greater activity in Trinidad and Tobago also contributed to production gains.
At the start of 2013, Repsol reached a significant milestone with the start of commercial production at the giant Sapinhoá field in Brazil, which will reach an output of 120,000 barrels of oil equivalent in the first development phase. This project will contribute decisively to the company’s growth goals in coming years.
Also significant is the start of commercial production at the Syskonsyninskoye (SK) field in Russia.
During the quarter the company drilled nine wells, of which seven showed very positive results, including three good quality oil and gas discoveries in Alaska.
Investment in the Upstream business during the first quarter of 2013 was 545 million euros, 11% less than the previous year. Project development accounted for 76% of total spending, mainly in United States (36%), Brazil (18%), Venezuela (15%), Trinidad and Tobago (13%) and Bolivia (7%). Exploration investment represented 17% of the total, spent mainly in the US (39%), Norway (15%), Bulgaria (13%), Namibia (10%) and Russia (10%.)
Press Release, May 9, 2013