Repsol posted net income of 2.121 billion euros in 2017, 22% more than the 1.736 billion it earned in 2016.
In a low price scenario for raw materials, the company, supported by the strength of its business and its efficiency plans, achieved the highest net income in six years.
- Net income increased by 22% and the adjusted net income, which measures the performance of business’s, increased by 25% to 2.405 billion euros. Both incomes are the highest in the last six years.
- EBITDA stood at 6.723 billion euros, a 29% improvement on the previous year and the highest in five years.
- The 2017 earnings reflected the strength of the company’s integrated model, its flexibility and its capacity to adapt to lower crude oil and gas prices.
- The Upstream business (Exploration and Production) saw a twelvefold profit increase to 632 million euros, with an increase in production to 695,000 barrels of oil equivalent per day added to significant hydrocarbon discoveries.
- The Downstream (Refining, Chemicals, Marketing, Lubricants, Trading, LPG, Gas & Power) earnings totaled 1.877 billion euros, with growth in Refining, Marketing and Trading and Gas & Power and Peru. The refining margin indicator in Spain grew by 7.9% to 6.8 dollars per barrel.
- Repsol’s shares appreciated 10% over the financial year, for a 46% stock increase in the last two years.
- The company was the first in its sector worldwide to issue a certified green bond to finance more than 300 sustainable initiatives.
Repsol’s integrated business model allowed the company to successfully navigate the environment and exploit the slight recovery of crude oil and gas prices beginning in June. Management focused on value creation, flexibility and diversification provided by business integration to boost the adjusted net income, which grew by 25% to 2.405 billion euros, compared to 1.922 billion in 2016.
The Upstream unit earned a profit of 632 million euros 12 times that obtained the previous year. This significant improvement was the result of measures adopted in its synergies and efficiency plan, the resumption of activity in Libya and rising international benchmark prices.
As for Downstream, its profit of 1.877 billion euros was in line with that of previous years, marking this business division as a major generator of cash for the company. Throughout the year, the Refining, Peru, Marketing and Trading and Gas & Power areas increased their results, Lubricants increased sales and Chemicals maintained the robustness of the past two years.
The strong behavior of Repsol businesses resulted in a 29% increase in EBITDA, to 6.723 billion euros, the best result of the last five years.
At the same time, the company reduced its debt by 23% to 6.267 billion euros at the end of the year.
The implementation of the synergies and efficiency program generated approximately 2.4 billion euros in savings, exceeding expectations and meeting its objective of 2.1 billion euros, set forth in the strategic plan, one year earlier than anticipated.
The company’s performance and the fulfillment and exceedance of the goals announced to the market had a direct impact on evaluations from rating agencies, which unanimously increased their ratings.
All of this data was reflected in the stock market, where Repsol shares saw an annual appreciation of 10%, for a total of 46% over the last two years. PWKD02032018