Spanish oil and gas firm Repsol posted net income of €608 million in the first quarter of 2019, in line with the €610 million obtained between January and March of 2018.
Meanwhile, the adjusted net income stood at €618 million, up by 6 percent, as compared with the €583 million earned a year earlier.
— Repsol (@Repsol) April 30, 2019
Repsol faces a first quarter filled with challenges
These results, similar to the ones obtained during the first three months of 2018, come despite a first quarter marked by lower oil prices. The Brent barrel was trading at $63.1 per barrel, 6 percent under the $66.8 recorded in the first three months of 2018.
Positive results in the Upstream
As to its Upstream business, Repsol increased its income in 1Q 2019 by 12.5 percent to €323 million, from €287 million recorded in 2018.
The firm attributes these results to the implementation of efficiency and digitalization programs and the success of exploration operations, especially in Indonesia. It was also boosted by lower exploration costs and the positive effect of the exchange rate.
Production fell to 700,000 barrels of oil equivalent per day during the first quarter, down from 726,000 a year ago. According to the company, the drop is primarily due to a halt in production in Libya, which was resumed on March 4.
The company also saw additional production volumes in the first three months of the year thanks to new wells in Marcellus (United States), Duvernay (Canada), and Akacias (Colombia); the acquisition of the Mikel and Visund wells in Norway and the start-up of a gas field in Trinidad and Tobago.
As to the exploration activities, Repsol drilled even wells during the first quarter, four of which brought positive results. The Sakakemang well in Indonesia stands out for being the site where the company made the world’s greatest onshore discovery this first quarter. Moreover, it is regarded as one of the largest recorded in the last year.
Investments in the Upstream unit rose to €399 million in 1Q 2019, of which 85 percent corresponded to project development and 13 percent to exploration activities.
Challenges in the Downstream
For its part, the net adjusted profits in the Downstream unit reached €404 million from €425 million last year.
El mayor descubrimiento en tierra del mundo 📍, la inauguración del primer punto de recarga ultra rápida de la península 🔌, avances en igualdad y buen gobierno 👩💼 y el aumento del dividendo 📈 son algunos de los hitos del trimestre: https://t.co/2dnFBmHKEZ #ResultadosRepsol pic.twitter.com/zUMuPfVB31
— Repsol (@Repsol) April 30, 2019
In the refining area, the firm made a planned shutdown at its Bilbao refinery, where it invested €52 million to incorporate technological, efficiency, and security upgrades.
In 2019, Repsol will develop an extensive maintenance plan at its Spanish refineries to prepare for upcoming international regulations on marine fuels.
Meanwhile, the Gas and LPG businesses were affected by a drop in demand stemming from a softer winter in North America and the Iberian Peninsula.
The Chemistry unit increased sales and continued its differentiation strategy with new added-value products. Additionally, it acquired a 17-percent share in Spanish company Recreus – one of the most relevant manufacturers in the market – in late March.
With regards to the electricity and gas business, Repsol continued to add new clients to grow its portfolio.
The company continued to strengthen its position in Spain’s mobility sector with 31 fast charging points in its service stations. It also participates with a network of over 1,700 charging points, of which 200 are public access.
Repsol invested €189 million in the Downstream business during the first three months of the year.
The company’s EBITDA increased to €1,810 million on this first quarter, slightly up from the €1,804 recorded last year in the same period.
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