Repsol surprised Thursday to report best quarterly net profit than expected, thanks to the positive contribution of its exploration activity and production and strong performance in its refining unit despite falling oil prices.
the Spanish oil company had an adjusted net profit of EUR 572 million (US $ 655 million) in the first quarter, down 38% over the same period of 2015, when their results were boosted by an extraordinary financial gain.
However, the result was much better than analysts’ forecasts of a net profit of between 14 million and 445 million euros.
according to several analysts, market expectations were conservative by persistent weakness in oil prices-a 37% lower than in the same period of 2015 and falling refining margins in the sector over the previous quarter.
in its statement, Repsol he said it had a positive result in “upstream” (exploration and production) of 17 million euros compared to losses of 190 million a year earlier and red numbers 276 million in the last quarter of 2015.
in the tough business of refining or “downstream”, the result improved by 4% to 556 million euros thanks to increased demand for gasoline and a lower tax burden in Spain .
in contrast, the contribution of its subsidiary Natural Gas was quite loose, with a drop of almost 19 percent to 99 million euros in its contribution to the related adjusted profit, according to Repsol, with minors margins on gas sales and distribution businesses electricity and gas in Latin America.
Following the announcement of its results, shares of Repsol staged one of the biggest gains of the day and closed up the 4.67%, to 11,305 euros.
shares of oil which last year posted its first annual loss and has had to adjust costs, sell assets and cut shareholder remuneration to maintain the degree of investment- they have recovered 12 percent so far this year.
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