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Repsol pumps up 1st half profits on high oil price boon
AFP
MADRID
Petroleumworld.com 07 28 06
The leading Spanish oil group Repsol YPF said on Thursday that first-half net profit had raced ahead by 9.9 percent to 1.782 billion euros (2.24 billion dollars), helped by high oil prices.
Analysts told AFP's financial subsidiary AFX they had been expecting a figure of 1.791-1.852 billion euros for Repsol, the world's seventh-largest producer of hydrocarbons which does much of its business in Latin America.
Net second-quarter profit was 920 million euros, a rise of 11.7 percent from the equivalent figure last year.
"The (second) quarter result reflects the high price of oil," Repsol said in a statement to the Madrid stock exchange authority CNMV.
First-half earnings before interest, tax and amortizations rose to 4.711 billion euros from 3.928 billion a year earlier.
The company said its showing was also aided by a strong increase in exploration and production activity, as well as its electricity and gas operations.
Repsol added operating profit rose 8.3 percent to 3.294 billion euros as exploration and production grew 29 percent and electricity and gas operations by 25 percent.
The operating profit includes earnings accounted for under the equity method relating to the company's stake in Gas Natural SDG SA and the sale of shares in Enagas SA.
Oil and gas production over the second quarter actually slipped 4.8 percent but the high oil prices kept exploration and production activities buoyant.
Regarding refining and marketing operations, the company said operating profit fell 7.7 percent to 1.249 billion euros amid tightening margins which also hit petrochemical activity, where operating profit declined 49.2 percent to 123 million euros, the lack of one-time gains a further factor.
Group net debt was 4.111 billion euros, down from 4.513 billion in December. Including preferential shares, Repsol YPF's net debt totaled 7.566 bln eur on June 30.
Oil and gas production in the second quarter fell 6.9 pct, in line with estimates.
Repsol said in May that it was to stay in Bolivia where it has invested more than 1.2 billion dollars since 1997, after the nationalisation of the country's energy sector by leftist President Evo Morales.
The company recently bolstered its presence in the Gulf of Mexico, buying from British Petroleum a 28.0-percent stake in the Shenzi platform for 2.145 billion dollars.
Last month Repsol said it wanted to balance out its geographical footprint and increase investments in North Africa and Russia.
AFP 27 0916 GMT 07 06
Copyright ©2006 AFP. All Rights Reserved.
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