Repsol’s 1H profit slumps by 20 percent

Spanish oil company Repsol has posted during the first half of 2015 net income of 1.053 billion euros ($1.15 billion), which is 20.6% less than the 1.327 billion euros ($1.45 billion) in the corresponding period last year. 

The company’s adjusted net income was 1.24 billion euros ($1.36 billion), 35% more than the 922 million euros (around $1 billion) obtained in the first half of 2014.

According to Repsol, its industrial assets and processes in the Downstream business units allowed it to take advantage of the improvement in international margins and offset the Upstream results, which had been affected directly by the fall in international crude oil prices and by interrupted production in Libya.

Namely, the Downstream business unit increased net profit by 115%, to 973 million euros (calculated based on stock valuation at current cost of supplies (CCS)), mainly due to better performance in the refining and chemicals business units.

The results from the first half of the year include Talisman from May 8, 2015. Repsol said that this integration has enabled it to surpass the targets set in its 2012-2016 Strategic Plan by practically doubling its reserves and production volumes.

Production

Following the integration of Talisman‘s assets, Repsol reached an average production of 660,000 boe/d in June, an 86% increase on the 355,000 boe/d produced on average in 2014. The average output for the first half of the year was 440,000 boe/d, including the Canadian company’s assets from May 8, 2015. The Talisman assets account for a large part of this increased production, mainly in North America and Asia.

Repsol also began production at the giant Perla gas field in Venezuela in early July. This is the largest gas discovery in the history of the company and the largest offshore field in Latin America. It has 17 trillion cubic feet (Tcf) of gas in place, equivalent to 18 times annual gas consumption in Spain, and the company expects to reach production of 450 million cubic feet a day by the end of the year.

According to the company, the sudden fall in international benchmark prices had an impact on the income of the Upstream area (exploration and production). The unit posted a loss of 238 million euros, which was also influenced by the interruption of production in Libya.

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Posted on July 30, 2015 with tags .

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