Repsol profits up in Q2 on higher prices
Spanish oil and gas major Repsol reported €1.8bn ($2.14bn) in second-quarter core earnings (Ebitda), up from only €240mn a year earlier, as a result of higher prices, the company reported on July 29.
Earnings were stronger across all Repsol's main divisions, although the biggest improvement was in the industrial business, comprising Repsol's downstream operations, where Ebitda reached €647mn in Q2 2021, versus a €156mn loss a year earlier.
The company attributed the growth in industrial segment earnings to stronger numbers from its chemicals and wholesale and gas trading businesses. Upstream Ebitda rose to €918mn from €331mn, although the impact of higher prices were partially offset by a dip in production 561,000 barrels of oil equivalent/day from 640,000 boe/d, driven by a 17% decline in gas output to 1.98bn ft3/d.
Repsol's overall net income came to €587mn, marking a reversal from a €2bn loss a year earlier caused primarily by special items relating to provisions and workforce restructuring. Adjusted net income came to €488mn, compared with a loss of €258mn a year earlier.
"The steps we've taken have allowed us to obtain the maximum possible value in this complex scenario, taking immediate advantage of the recovery indicators that we see, with signals that brings us closer to pre-pandemic levels," Repsol CEO Josu Jon Imaz commented. "At the same time, we are responding to society's needs and moving decidedly towards our goal of zero net emissions by 2050."
Repsol shaved €392mn off its net debt during the second quarter, bringing it to €6.39bn. It also boosted operating cash flow to €902mn from €268mn.