Repsol Q4 adjusted net profit doubles

 

Spain's largest oil company Repsol met analysts estimates on Thursday with a doubling of adjusted fourth quarter net profit thanks to higher oil prices and refining margins. Repsol's refining margins in its core Spanish markets rose to $2.9 per barrel from zero in the fourth quarter of 2009, while its oil fetched 16% more year on year. Net debt at the company fell by over a third in the fourth quarter to 7.22 billion, helped by the sale of assets in Brazil, mainly a stake in its upstream operations to China's Sinopec in October.

Repsol's adjusted earnings before interest and taxes (CCS adjusted EBIT) increased 41% to 1.06 billion euros. Repsol's fourth quarter earnings were also driven by capacity hikes in liquid natural gas from a new plant in Peru, which together with a modest recovery in gas prices boosted the group's LNG division. A Reuters poll of 10 analysts saw Repsol's fourth quarter net profit adjusted for one-time gains and inventory effects (CCS adj net) increasing 100 percent to 483 million euros, on a 41% increase in CCS adjusted operating profit to 1.06 billion euros.

Repsol will hold a press conference at 1030 GMT when it is expected to field questions on losses due to the stoppage of its operations in Libya. Repsol's oil flows in the North African country account for 3.8% of the company's total production and were suspended on Tuesday.