Repsol’s profit hit by low oil prices

Spanish energy giant Repsol on Thursday informed its first quarter net profit plunged 43 percent to €434 million ($498 million) from €761 million in the corresponding quarter in 2015. 

The company noted in its report that its adjusted net income was at €572 million, 38.4 percent lower compared to the €928 million in the first three months of 2015, a result helped by the compensation received following the expropriation of YPF in Argentina.

The company’s results were hit by the falling oil prices that averaged $33.9 per barrel, 37 percent lower compared to the same period last year.

However, company’s average hydrocarbon production reached 714,200 barrels of oil equivalent per day, double that produced during the first quarter of 2015.

Repsol said that both its upstream and downstream unit posted positive results despite the low oil prices.

The exploration and production businesses increased adjusted net income by €207 million from the first three months of 2015, while the downstream business unit’s net income rose 4 percent from €534 million in2015 to €556 million in the first quarter 2016.

Spanish LNG operator Natural Gas Fenosa, in which Repsol is a large shareholder, posted an income of €99 million, an 18.9 percent decline compared to the €122 million during the corresponding quarter in 2015.

The decline is primarily attributable to lower results in the gas commercialization business due to the current price environment, and the adverse impact of exchange rates in local currencies in Latin America, Repsol said.

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LNG World News Staff