Repsol Profit Beats Estimates

Wednesday, July 24, 2019

Spanish energy company Repsol trimmed its full-year earnings outlook on Wednesday as lower oil prices and refining margins weighed on profits, but a share buy-back and better than expected results bolstered its stock.

Repsol proposed buying and cancelling 5% of its outstanding shares, helping send its stock more than 5% higher in early afternoon trade as investors forgave a fall in second-quarter adjusted net profit.

The result - 497 million euros ($554 million) when adjusted for one-off gains and inventory effects - was 9% lower than the same period of the previous year but beat a forecast of 478 million euros collected by the company from 25 analysts.

Repsol tweaked its guidance for full-year core earnings before interest, tax, depreciation and amortization to 7.8 billion euros, from a previous 8 billion euros.

Expectations for the second quarter had been low partly because oil prices have been dragged down this year by rising supply from the United States and a weaker demand outlook due to slowing economic growth.

That has prompted the Organization of Petroleum Exporting Countries (OPEC) to prop up the market by limiting supplies.

Repsol's refining margin plunged 34% in the April to June period from the previous quarter, to $3.50 a barrel. Brent crude averaged $68.9 per barrel in the period, compared with $74.4 last year.

Chief Executive Josu Jon Imaz said the company expected the refining margin to improve later in the year, but said he now calculated it could squeeze $6 out of each barrel, compared with a previous estimate of $7.6.

Nevertheless, Imaz said Repsol might carry out further share buybacks in future.

Repsol said new wells in Colombia and Canada, the purchase of a stake in Norwegian oil field Mikkel and production from the deepwater Buckskin project in the United States had bolstered its upstream division.

Downstream, lower refining margins were partially offset by higher sales at its chemicals unit and in Peru, as well as a stronger U.S. dollar versus the euro.

A long-standing headache caused by outstanding debts in Venezuela eased, as deliveries of five cargoes under an oil-for-debt deal chipped away 45% of what it was owed during the first half of the year, Imaz said.


($1 = 0.8974 euros)

(Reporting by Isla Binnie; Editing by Paul Day, Deepa Babington and Jan Harvey)

Categories: Finance Industry News Production

Related Stories

CNOOC Puts Into Production New Oil Field in South China Sea

Woodside to Shed Some Trinidad and Tobago Assets for $206M

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

ONE Guyana FPSO En Route to ExxonMobil’s Yellowtail Field

CNOOC Starts Production at Offshore Oil Filed Equipped with CCUS Tech

CNOOC Boosts Dongfang Gas Fields Output with New Platform Coming Online

BP Targets 44% Oil, 89% Gas Increase from India’s Mumbai High Field

CNOOC’s South China Sea Oil Field Goes On Stream

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

Current News

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com