Repsol quarterly result boosted by higher oil prices

Spanish oil company Repsol reported a rise in net income for the third quarter of the year, boosted by higher oil prices and higher refining margins.

The company’s net profit was 527 million euros, as compared to 481 million euros a year ago.

“The results for the third quarter of 2017, compared to the same period in the previous year, occurred in a more favorable environment – in spite of the weakness of the dollar – marked by higher oil and gas prices (Brent +14% and Henry Hub +7%), better refining margins and an international environment that continues to be good for the petrochemicals business,” Repsol said.

Adjusted net income spiked to $576 million, an 88 percent increase compared to 3Q 2016.

Average production in the second quarter was 693 Kboe/d, up 3% on the same period in 2016.

Repsol has explained that the higher production was due to activity in Libya, the start-up of new wells and the better performance in Trinidad and Tobago (Juniper) and the start of production in Lapa, as well as the incorporation of new wells in Sapinhoá in Brazil and in the UK (Flyndre and Cayley).

“These positive effects were partially offset by the drop in demand for gas in Bolivia and Peru, the natural decline of fields and the effect of divestments performed in Trinidad and Tobadgo (TSP) and in Indonesia (Tangguh y Ogan Komering),” the company said.

Regarding exploration activity, drilling activity of three exploratory wells was completed in the third quarter, one with a positive result and two with a negative result. At the end of the period, there were eight exploratory wells and one appraisal well still ongoing, one of which was finished in October with a negative result.