Repsol Seeks Higher Diversification at Lower Cost

Repsol reported a net income of €1.612 billion, despite a €606 million backlash due to the fall in the price of crude. 

‘This result represents a 724% increase over the 195 million euros registered in 2013, a financial year in which the company booked one-time cleanup charges related to the expropriation of YPF’ reads a note released on Thursday.

Reporting its upstream results, the Spain-based company reported a 2.5% increase in production, due to its new projects in Brazil, Peru, Russia, and the United States.

‘For the fifth consecutive year Repsol has incorporated more hydrocarbons to its reserves than it produced, with a replacement ratio of 118% for the financial year. The average replacement ratio for the last three years is around 200%’ the company adds. 

But the positive results have to do with higher refining margins. Downstream does appear to be the main focus.

The company, which also plans to refute its year-on-year exploration investments by 35%, also spoke about the acquisition of Canada’s Talisman Energy, which is expected to increase diversification and competitiveness.

‘The acquisition of Talisman Energy will make Repsol a larger, more balanced group in terms of the composition and geographical location of its assets.’