Repsol Reports 969 Million Euros in Q1 Net Profit, But Adjusted Result Measures Operating Performance

Repsol, the largest Spanish oil company, reported a net profit of 969 million euros in the first quarter of the year. Despite this being a decrease of 12.9% compared to the same period in 2023, the adjusted result measuring operating performance was 1,267 million, which was a 33% decrease. The decline in profits is attributed to various factors such as lower fossil fuel prices, particularly natural gas, and reduced refining margins.

Repsol’s shares fell around 2% on the Ibex 35 index due to these financial results. However, despite an increase in net debt to 3,901 million driven by dividends distribution and increased working capital, liquidity remains strong at 10,332 million. This covers nearly four times all short-term debt maturities.

The business segments within Repsol showed heterogeneity in their performance. The exploration and production of crude oil and gas recorded a profit of 442 million but decreased due to various factors including the price of gas and recent divestments. The industrial area saw a significant drop in profits to 731 million mainly due to refining margin reductions. The client segment achieved an adjusted profit of only 156 million slightly lower than before while low-carbon generation and corporations recorded negative figures amid challenges in the wholesale electricity market in Spain.

Investments for Repsol increased in the first quarter to 2,129 million with renewable energy receiving half of this amount. The company has committed to investing between 16,000 and