The largest Spanish oil company, Repsol, posted a net profit of 969 million euros in the first quarter of the year, 12.9% less than in the same period of 2023. The adjusted result, which better measures its operating performance, was of 1,267 million, 33% worse. A fall that the energy company attributes to the fall in the price of fossil fuels and, very particularly, of natural gas. Also to the lower refining margins, one of the pillars of their accounts in recent times and which are now slowing down. Its shares are the ones that fall the most on the Ibex 35: they fell around 2% in the early stages of the session.
The net debt, for its part, stood at 3,901 million, just over 1,805 million more than on December 31, due to the distribution of the dividend, the increase in working capital and the increase in organic and external investments. Although this increase raised the leverage ratio—a key variable of a company’s financial health—liquidity remains solid: 10,332 million, enough to cover almost four times all short-term debt maturities.
The accounts sent early this Thursday to the National Securities Market Commission (CNMV) present a significant heterogeneity between the main businesses of the company run by Josu Jon Imaz. Exploration and production of crude oil and gas recorded an adjusted profit of 442 million, almost 7% less than a year before due to the aforementioned drop in the price of gas, the recent divestment of all its fossil assets in Canada and the strength of the dollar against to the euro.
The industrial area, which includes the refineries (the ones that have given the most money to Repsol in much of the energy crisis) earned 731 million, 548 million (or 43%) less due to the notable drop in the refining margin. , 27% compared to the last three months of last year. Client, which encompasses all fuel and electricity marketing, achieved an adjusted profit of 156 million, 10% less. And both low-carbon generation and corporations recorded slightly negative figures, largely due to the lower prices captured by their renewables and combined cycle plants (in which gas is burned to generate electricity) in the midst of the collapse of the wholesale electricity market in Spain.
More investments and dividend
The first quarter ended with a notable increase in the oil company’s investments, up to 2,129 million. Half of that figure went to renewables. Between this year and 2027, Repsol has committed to investing between 16,000 and 19,000 million, of which 60% will have the Iberian Peninsula as its final destination.
On January 11, the oil company distributed 0.40 gross euros per share among its shareholders. At the end of March, it also began a buyback program of up to 35 million of its own securities, another form of indirect remuneration.