Repsol Achieves €1.1 Billion in Q1 but Suffers from the Drop in Oil Prices and Earns 20% Less

Repsol presented its business results this Thursday and once again did so with significant earnings results, in a context in which fuel continues to be one of the main concerns of Spaniards. Specifically, the Spanish company obtained a total net result of €1.1 billion in the first quarter of 2023. These figures represent a 20% loss compared to the same period of the previous year.

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Repsol recalls that these results come after a sharp decline in fuel prices due to the slump in oil prices

Specifically, Repsol explains that the average price of Brent crude oil fell to $81 per barrel, 21% less than in the first quarter of 2022, with a significant drop in March, to $72 per barrel, as a result of the banking crisis in the middle of the month. At present, fuel prices have also fallen, although the price of a liter of diesel is above one and a half euros and gasoline is above 1.6o.

In this sense, the operator states that it has lost some €550 million from the discounts offered to its customers since the beginning of the war in Ukraine. It is worth remembering that this quarter is the first in which Repsol no longer has the 20-cent bonuses, although it continues to offer important offers to its customers linked to its energy tariffs.

Despite the decline in results, there are business areas that have performed positively, such as Customer (+82%), Industrial, and Low Carbon Generation (+21.4%), which were above those obtained in the same period of the previous year.

On the other hand, the company paid itself a cash dividend of €0.35 gross per share, the same amount proposed to the General Meeting for distribution in July. With these payments, Repsol will increase cash remuneration for its shareholders by 11% in 2023

Josu Jon Imaz, CEO of Repsol: “Our integrated business model, as well as the fulfillment and ambition of our Strategic Plan, are being fundamental to obtaining solid results. At the same time, we continue to raise our multi-energy profile and make progress in decarbonization. We have launched a pioneering commercial offer in Spain, which helps our customers in their daily lives by linking all the energies needed for mobility and the home, and strengthens our vision as a company.”

He also highlighted the multi-energy company’s investment effort in the period, which amounted to €1.72 billion, mainly earmarked for Spain and the United States, two key countries in its strategy.

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(Featured image by egonetix_xyz via Pixabay)

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First published in EL INDEPENDIENTE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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