Cepsa’s adjusted net result for 2017, eliminating non-recurring items and calculating the variation in inventories at replacement cost (Clean CCS), rose to €884 million, 60% higher than in 2016.
Applying International Financial Reporting Standards (IFRS), calculating changes in inventory at average purchase unit cost, accumulated net income for the period was €743 million, up by 23% compared to 2016.
The oil price recovery, which saw a 22% rise in benchmark Brent crude to average $54/b in 2017, together with the strong level of refining margins throughout the whole year, as well as efficiency improvement programs implemented in recent years, were the key factors behind results achieved for the year.
Turnover rose to €20.8 billion, 16% higher than the previous year, and EBITDA increased by 18% to € 1.87 billion. Over the year the company carried out investments amounting to €888 million and net debt fell by 18%, to €1.7 billion at the end of the year, with a net Debt/EBITDA ratio of 0.92.
The company continued to improve its safety figures over 2017 with a reduction in the Lost Worktime Injury Frequency Ratio for the sixth consecutive year. The result marked an improvement of 19% compared to 2016, with a ratio of 1.0 lost-time accidents for every million hours worked.
Refining and Marketing activity increased its results by 39%, close to €600 million. Refining margins were strong both for oil derivative products and petrochemicals, with Cepsa's refining margin at $7.5/b compared to $5.6/b the previous year.
During 2017, Cepsa processed 154.7 million barrels of crude oil, with a high processing capacity utilization rate at the refineries of 91% and production of 21.4 million tonnes of petroleum derivatives.
Over the year, the Company carried out a significant investment effort totaling €565 million in Refining and Marketing activities, aimed at maintenance, efficiency improvement and transformation of facilities and growth at its fuel retail network.
In 2017, Cepsa acquired a biofuel production plant in San Roque (Cádiz), which is integrated into the company's refinery in this location. It has also carried out one of the most significant purchases of fuel service stations in recent years seen in the Spanish market, through the acquisition of 23 fuel service stations, located in the Madrid region and province of Toledo. PWKD16032018