Repsol Income Slumps in Q3

Spain’s Repsol has recorded a 46.7% decline in income for the three months ending September 30, as strong downstream performance was more than offset by weaker upstream earnings.

Net income for the quarter came to €333mn ($371mn), from €625mn a year earlier, the company said in a report published on October 31. Adjusted net income came to €522mn, down from €588mn.

Upstream adjusted net profits slumped 40.8% yr/yr to €218mn, dragged down by lower oil and gas prices, which more than countered the impact of a 2.9% rise in production to 711,000 barrels of oil equivalent/day, thanks to the launch of new wells in the US. The company produced 459,000 boe/day of gas in the period.

Earnings from Repsol’s downstream segment, which includes refining, marketing and LPG, climbed 11% to €372mn, on the back of a growth in refining margins to $5.5/barrel, from $3.5 in the previous quarter.

Net debt crept up €3.84bn at the end of September, €174mn higher than three months earlier, owing to treasury stock acquisitions.