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Spain: CEPSA Positive Second Quarter 2017 Results

Spain: CEPSA Positive Second Quarter 2017 Results

Cepsa’s adjusted net profit for the first half of 2017 was €466 million.

 

Highlights

  • Acquisition of 23 fuel service stations, 20 of which are in the Madrid region. The acquired fuel service stations are large and located on main thoroughfares in the capital with access to major residential areas and national highways.
  • Annual production capacity of the Group’s Brazilian LAB plant was increased to 260,000 tons, strengthening our position as world leader in LAB production.
  • Cepsa is celebrating its 30th anniversary in Algeria, a key country in the development of the company's crude oil and natural gas exploration & production activities as well as for gas transportation using the underwater Medgaz gas pipeline.
  • After the high voltage power line was rebuilt, the Puente Mayorga Generación combined-cycle gas turbine station in San Roque started supplying the Spanish grid with electricity again.

The cumulative net profit for the period was €412 million, 18% higher than in the same period last year. Cepsa's strong refining margins, economic growth combined with a once-again booming demand for fuel, and a robust performance of the petrochemical industry were key to the increase in Cepsa’s earnings.

Constant attention to operating in a safer working environment enabled to reduce the accident rate to 0.67 days per million hours worked as measured by LWIF, 47% less than in Q1 2016.

During the first half of the year, international benchmark Brent crude prices were $51.8/b vs. the $39.7/b of the previous year's first half, an increase of 30%.

Crude production amounted to 90,800 barrels a day, slightly lower than in the same period a year ago, with a total of 7.2 million barrels sold in the six months. Refining margins were healthy, mainly thanks to fuels and petrochemical products, with Cepsa’s refining margin indicator at US$7.20 a barrel, compared with US$5.50 a barrel the year before.

Over the six months 73.6 million barrels of crude oil were processed with a distillation- capacity utilization rate of 87% and the production of 10.3 million metric tons of petroleum derivatives.

The company’s petrochemicals business recorded €60 million in profits after taxes with good sales performance from both LAB (linear alkyl benzene, a raw material used in the manufacture of biodegradable detergents), in which Cepsa is the world leader, and phenol/acetone (raw materials used in next-generation plastics). PWKD08082017

Last modified onTuesday, 08 August 2017 02:06
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