The Spanish oil company Repsol (Amsterdam: RP6.AS – News) <- - google_ad_section_start!> Said Wednesday it will make provisions for 2,900 million euros due to the low price oil, so it recorded a loss of 1,200 million euros in the results of 2015.
“Given the continued scenario of low oil prices and gas, the Board of Directors of Repsol has decided ( …) make extraordinary accounting provisions worth about 2,900 million in its results for the year 2015, after which it will place its net result in about 1200 million euros, “the oil in a statement to the Spanish stock market authorities .
“These writedowns can be reversed positively on the income statements of future years, when you change the setting of prices,” said Repsol in the preliminary results.
The first Spanish oil recalls that its adjusted net income (excluding extraordinary measures, how are you provision) would have recorded a profit of 1,850 million euros last year, which is 8% more than in 2014.
Just way, “adjusted net income for the fourth quarter of 2015 will stand at 450 million euros, representing an increase of over 20% over the last quarter of 2014″.
“The management businesses in the period (2015) has occurred in a context of intense and continuous drop in prices of oil and gas, so Repsol has deepened in the implementation of their plans to generate synergies, improved efficiencies, divestment non-core assets and reduced investment, “said the oil chaired by Antoni Brufau.
In this line, the company said Wednesday that reduced” by a further 20% “the investments planned for 2016, after last October and announced a reduction of 38% over the next four years as part of its strategic plan 2016-2020.
Thus, total investments next year “will be placed around the 4,000 million euros “, according to Repsol.
Other measures to address the current situation of low prices will be” deepen and accelerate the program of non-strategic divestitures, “the strategic plan stood at 6,200 million 2020.
In principle, the company expected to make half of these divestments in the period from 2016 to 2017 and the rest between 2018 and 2020.
Repsol also wants to “accelerate and increase the synergies derived from the integration of Talisman “Canadian oil absorbed last year by the Spanish company by 8,300 million dollars.
” We have identified about 400 million dollars a year (vs. the $ 220 million estimated at the date of acquisition), and materialized more than 50% of them “, according to Repsol.
The Spanish oil company also hopes to” deepen their program efficiencies “so This year “total synergies and efficiencies reach a figure of around 1,100 million euros, over 50% of the target included in the strategic plan to achieve in 2018″.
The worst scenario This plan provided for a barrel of oil at 50 dollars over the next five years, but now the barrel is sold around $ 32.
The Spanish oil is not the only one being affected by the Falling oil prices, but the competitors are also suffering as French Total (Swiss: FP.SW – news)., British BP or the US ExxonMobil
Repsol plans to present its annual results on February 25.
No comments:
Post a Comment