Repsol earned 1,112 million up to March, 20% less, due to the drop in crude oil prices.

Repsol earned 1,112 million up to March, 20% less, due to the drop in crude oil prices.

Repsol obtained a net profit of 1,112 million 1,112 million between January and March, 20.1% less than in the same period of the previous year, coinciding with a quarter in which crude oil prices fell, on average, by 20% year-on-year.

However, the adjusted result, which specifically measures the performance of the businesses, amounted to €1,891 million, i.e., 78.4 % more than the 1,060 million recorded a year earlier.The company reported this Thursday to the National Securities Market Commission (CNMV).

According to the presentation sent to the market, its gross operating profit or ebitda fell by 20.3 %, to 2,696 million euros, while CCS ebitda, net of changes in the value of inventories and extraordinary items, rose by 24.6 % to 3,061 million euros.

First Republic Bank headquarters in New York.

Repsol’s business areas performed well, although Exploration and Production reflected the decline in hydrocarbon prices, weighed down by the uncertain economic outlook in the US and Europe in the face of global inflation.

In this period, Brent crude oil prices fell on average to $81 per barrel, 21% lower than in the first quarter of 2022, with a notable drop in March resulting from the banking crisis experienced in the middle of the month.

For its part, Henry Hub gas was paid at an average of $3.4 per MBtu (measure for gas), 32% lower than in the same months. of the previous year.

By business

In Exploration and Production, adjusted earnings amounted to €474 million, down 35.2%, due to lower realization prices, higher amortization and production costs, but were offset by higher volumes, lower royalties, taxes and exploratory costs, and appreciation of the dollar against the euro.

Average production rose to 608 kboe/d, 50 kboe/d higher, due to, among others, the connection of new wells in unconventional assets in the USA, higher production in Libya and increased production at the YME project. (Norway).

Image of a Repsol service station.

In Industrial, adjusted profit amounted to 1,279 million euros, 1,044 million thanks to the Refining, Trading and Wholesale and Gas Trading businesses, and to the appreciation of the dollar against the euro, although it was reduced in Chemicals by lower margins and sales.

At Customer, was 174 million euros, up 83.2 %, due to the good performance in Mobility, Electricity and Gas Trading, Liquefied Petroleum Gas (LPG) and Lubricants, Aviation, Asphalts and Specialties.

In Low Carbon Generation, the result reached 34 million euros, up 21.4 %, due to the boost from renewables, while in Corporation and Others, the result was negative 70 million.

Kayleigh Williams