Repsol Net Profit Rises 32.5% (Spain)

Repsol posted net income of 1.786 billion euros in the first nine months of 2010, 32.5% higher than the same period of last year. Operating income was 4.06 billion euros, 58.4% higher than that recorded between January and September of 2009.

Repsol has maintained through September the momentum of the first six months of the year, with enhanced growth in the company’s key business areas. Excluding non-recurring items and inventory valuations (CCS), operating income posted an 82% increase to 3.659 billion euros due the improved refining margin, and better results in the chemicals business and the YPF unit.

Additionally, the stronger dollar and the increase of international oil (Brent 34.6%) and gas (17.9% Henry Hub) prices played a significant role.

During this period, Repsol also improved its crude oil realization prices by 33.9% (in line with the recovery of Brent oil) and its gas prices by 22.7% (above the benchmark Henry Hub pricing). In this environment, the Upstream unit’s (Exploration and Production) operating income reached 1.042 billion euros, 68.6% more than in the first nine months of 2009, helped by the increase in international oil and gas prices, and by increased output and an improved production mix.

Better refining margins, the smooth operation of the marketing business and the recovery of the chemicals business contributed to improving earnings in the Downstream unit (Refining and Marketing).

Nine-month operating income was 1.133 billion euros, representing a 34.1% increase compared to the same period in 2009.

YPF operating income rose to 1.205 billion euros, an 81.7% increase compared to the first nine months of last year, mainly due to prices tending toward international parity.

Between January and September, Gas Natural Fenosa posted operating income of 749 million euros, 33.8% more than the year-earlier period.

On 30 September 2010, the company’s financial liquidity was 6.912 billion euros, with an EBITDA/net debt ratio, excluding Gas Natural Fenosa, of 1.4.

The Group’s net financial debt at the end of September, excluding Gas Natural Fenosa, stood at 5.504 billion euros.

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Source: Repsol, November 11, 2010