Repsol Sees Profits Rise, Turns to Gas

Spanish producer Repsol posted October 31 a profit of €2.171bn ($2.46bn) for the first nine months of the year, an increase of 37% over the same period of 2017, and its highest nine-month result in the last decade. Adjusted net income rose by 11% to €1.72bn. Earnings before interest, tax, depreciation and amortisation rose to €5.83bn, representing a 24% increase over the same period in 2017.

Oil and gas production rose 4% to an average of 713,000 barrels of oil equivalent/day, of which two thirds was gas. Growth was supported by the startup of projects in Trinidad & Tobago, the UK, Algeria, Peru, and Malaysia, it said.

The upstream unit earned €1.015bn, twice the result obtained between January and September of last year, as a result of implemented efficiency measures, higher volumes and rising international prices. The benchmark Dated Brent crude price averaged 39% more than in the same period of 2017, but US gas prices averaged 8% lower.

The trading and gas & power unit increased its earnings from the same period of 2017, thanks primarily to higher margins. And in the quarter, Repsol signed up to buy 1mn metric tons/year for 20 years from Venture Global LNG, "in accordance with its commitment to gas as an essential part of the energy transition".

Aside from its renewable energy investments, including that made in one of the world's largest floating offshore windfarms, it sold its stake in Naturgy – formerly known as Gas Natural – and went out to compete against it in the retail market, buying the non-regulated, low-emissions electricity generation businesses from Viesgo, as well as its gas and electricity distributor.