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Repsol annual profits edge up to 3.188 billion dollars
MADRID
Petroleumworld.com, Feb 29, 2008Repsol, the biggest Spanish oil company, reported on Thursday that net profits for 2007 rose by 2.0 percent to 3.188 billion euros (4.813 billion dollars), and announced 32.8 billion euros in investments over the next five years.
The higher profit "was attained in spite of the depreciation of the dollar against the euro of 8.4 percent and the drop of international petrochemical margins," it said.
It said these were partially compensated by the increase in crude oil prices of 9.3 percent and greater international refining margins.
It said earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 5.3 percent to 8.573 billion euros.
The results were in line with analysts' expectations.
Total hydrocarbon production for the year fell 7.9 percent to 1.039 million equivalent barrels per day (bepd) "principally due to lower production in Venezuela, Bolivia and Argentina, and the finalizing of the activities in Dubai."
It was "partially compensated by the production increase in the rest of the world of 3.3 percent, with increments of 9,800 bepd in Brazil, 4,900 bepd in Trinidad and Tobago and 3,700 bepd in Libya."
Exploration and production operating profits in 2007 were down 9.7 percent at 2.968 billion euros, due in part to the depreciation of the dollar.
Operating profits for refining and marketing reached 2.358 billion euros, an increase of 27.1 percent partly as a result of "improved refining margins".
In its chemicals division, operating profits fell 34.6 percent to 231 million euros due to "lower basic chemical margins, especially during the last quarter of the year, coupled with lower production in Argentina due to natural gas supply restriction."
In the gas and power division, operating profits were up 10 percent to 516 million euros "due to the growth in commercialization of natural gas in Spain and distribution activity in Spain and Latin America.
The group, which is seeking to reduce its holdings in Latin America, also presented its 2008-2012 strategic plan, which envisages 32.8 billion euros in investments, principally to finance organic growth.
It said it plans to multiply EBITDA by 1.8 times over the period while increasing net profits by 2.1 times.
In December, Repsol announced it was selling 14.9 percent of its Argentine affiliate YPF to Argentine businessman Enrique Eskenazi for 2.2 billion dollars.
Eskenazi has the option of expanding his stake to 25 percent by buying another 10.1 percent in shares in Yacimientos Petroliferos Fiscales within four years.
"This transaction ... will play a key role in the development of Repsol YPFs Strategic Plan and will significantly contribute to a greater diversification of the Repsol Groups assets and drive its organic growth," Repsol said Thursday.
On the Madrid stock market, Repsol shares rose 0.13 percent to 22.98 euros by midday, in a market that was down 0.74 percent.
Story from AFP
AFP 28 1205 GMT 02 08Copyright© 2007 Petroleumworld. All rights reserved.
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