Spanish oil company Repsol saw its net income for the quarter drop by 43 percent when compared to the prior-year quarter.
The company’s net income dropped to 434 million euros in the first quarter 2016, from 761 million euros in the same period last year.
Repsol posted an adjusted net income of 572 million euros in the first quarter of 2016, a 38.4% drop 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.
According to Repsol, measures implemented by the company to increase savings in recent months led it 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, the company stated.
The exploration and production businesses increased adjusted net income by 207 million euros to 17 million euros, from the first three months of 2015. The company said this was due to lower exploration costs, higher production volumes, favorable exchange rates and cost savings from an intense program to improve efficiency.
Average production in the first three months of the year amounted to 714,200 boe/day, double that produced in the same period in 2015. This increase was mainly due to the integration of assets from Talisman, which contributed 330,300 boe/day, and new production from the Cardón IV (Venezuela) and Sapinhoá (Brazil) projects.
Net debt at the end of the quarter was 11.978 billion euros.
Offshore Energy Today Staff