Renta 4 | Spanish oil company Repsol published its operational data for Q119. In the first quarter of the year, the price of Brent Crude (63.1$/b) fell -5% yoy and -8% compared to Q418 because of the strong reduction in crude prices since their highs at the beginning of October (-42% until the end of December, although with a subsequent recovery of +28% from the beginning of 2019 until the end of March).
Alphavalue | During the last decade, Banco Santander has successfully diversified constructing a portfolio of low risk/high growth activities. Although it should guarantee the longevity of the group, it has not translated into profits for smaller shareholders.
Bankinter | Private equity group Carlyle has bought 30% of CEPSA for approximately $3.6 billion (€3.2 billion) and has reserved the right to increase its holding to 40%.
Bankinter | Iberdrola is preparing a bond issuance in Brazil. The Spanish company’s aim is to secure financing for its Brazilian subsidiary’s new investments. Among these investments, the adjudication of network projects valued at €1.380 billion stands out.
Composite and Services PMI, which is elaborated by the consultancy IHS Marlon, exceeded expectations for Spain. The PMI for services rose from 54.5 in February to 56.8 in March compared to the expected 55.
Fitch downgraded Red Eléctrica (REE, A- from A, and elevates the perspective to stable from negative) after the firm’s acquisition of Hispasat. The credit rating agency says that the 2018-2022 strategic plan announced by the group in February “does not support a capital structure consistent with the ‘A’ rating level in the medium term.”
Renta4 | IAG has published the March air traffic data, which show a beginning to the year similar to the company’s capacity (supply) target for Q119, with demand growing slightly more than supply, and in line with the target for the year of 5.9%.
Bankia Estudios | Although the Spanish economy continued generating financing capacity, it finds itself on a downward trend, burdened by the deterioration of the external environment, so that it closed last year at post 2014 lows (1.5% of GDP). The correction of the public deficit has been amply compensated for by the deterioration in the financial position of the private sector, above all of households which, with savings rate at historical lows, have registered financing needs for for the second consecutive year.
Evan Brown (UBS AM) | …But as the importance of fiscal policy increases for economic stabilization, uncertainty about its effects also increases.
Bankinter | Red Eléctrica (REE) demands normative adjustments to facilitate the implantation of renewable energies. The director-general of Red Eléctrica, Miguel Duvison, has declared that currently access has been approved in Spain for 84% of the energy potential which needed for 2030.