Repsol’s profits decrease by 13% as gas and refining margins drop until March

Repsol, the largest Spanish oil company, reported a net profit of 969 million euros in the first quarter of the year, a 12.9% decrease compared to the same period in 2023. The adjusted result, which provides a more accurate measure of its operating performance, was 1,267 million, a 33% decrease. This decline is attributed to the drop in fossil fuel prices, particularly natural gas, as well as lower refining margins. Repsol’s shares saw a 2% decline in the early stages of trading, making them the biggest decliners on the Ibex 35.

The company’s net debt increased to 3,901 million, mainly due to dividend distribution, increased working capital, and investments. Despite the rise in leverage ratio, liquidity remains solid at 10,332 million, enough to cover short-term debt maturities almost four times over.

Repsol’s main businesses showed varying results in the first quarter. Exploration and production of crude oil and gas earned 442 million, a 7% decrease from the previous year. The industrial area, including refineries, saw a 548 million drop in profit due to declining refining margins. The client sector, which involves fuel and electricity marketing, achieved a profit of 156 million, 10% less than before. Low-carbon generation and corporations recorded slightly negative figures due to lower prices from renewables and combined cycle plants.

The first quarter also marked a significant increase in Repsol’s investments, especially in renewables. The company plans to invest between 16,000 and 19,000 million by 2027, with a focus on the Iberian Peninsula. Repsol recently distributed dividends among shareholders and started a buyback program for its securities.

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