Repsol on Thursday said it had posted net income of 631 million euros in the first quarter of 2013, a rise of 1.6% from the year-earlier period at current cost of supply. Calculated based on MIFO criteria, net income was 634 million euros. These earnings are especially significant as the first quarter of 2012 included earnings from YPF.
The improved results are based on a strong performance from all of the company’s business units. Operating income from continued operations at current cost of supply rose 19% to 1.287 billion euros.
The Upstream unit continued its growth trend, performing well during the quarter. Production rose 11.4% following the start-up of five of the company’s key projects outlined in the 2012-2016 Strategic Plan. Especially significant is the start-up of the giant Sapinhoá field in Brazil, one of the largest developed in that country to date. Greater activity at Trinidad and Tobago also helped boost output.
The downstream unit posted increased earnings following the investments made in the company’s refining system. The completion of the Cartagena and Bilbao projects have widened refining margins and increased the company’s capacity, setting the assets amongst the industry’s best.
Additionally, the company surpassed its 2012-2016 divestment goals at the end of February following the agreement to sell to Shell LNG (liquefied natural gas) assets for 6.7 billion euros.
At the end of the quarter, the Repsol Group (excluding Gas Natural Fenosa) had liquidity of close to 9 billion euros, 2.4 times short-term debt maturities. The company’s net financial debt was 13% lower than at the end of 2012, to 3.867 million euros.
In March, Repsol sold treasury shares, amounting to five percent of the company’s stock to Temasek of Singapore for 1.036 billion euros. The agreement reflects the confidence by international investors in Repsol’s growth strategy and increases the company’s attractiveness.