Repsol to continue to advance transformation and decarbonization objectives
Repsol posted net income of €1.392 billion in the first quarter of 2022, compared with €648 million in the same period of the previous year. The company’s integrated business model and the management carried out following the guidelines established in the 2021-2025 Strategic Plan were fundamental to take advantage of an international economic context which has recovered compared to the first months of 2021 that were still marked by the global pandemic.
The first three months of 2022 were marked by the invasion of Ukraine, which led to an abrupt rise in hydrocarbon prices. Thus, Brent crude oil traded at an average of $102.2 per barrel, compared to $61 in the same period of 2021. For its part, Henry Hub gas averaged $5/MBtu, nearly double that of 2021 when it was priced at $2.7/MBtu.
Against this backdrop of rising commodity prices, which led to an increase in fuel prices, Repsol sought to alleviate the financial burden on its customers by offering significant discounts at its service stations. Furthermore, in line with its commitment to become zero net emissions, the company advanced in its transformation process and took significant steps in cutting-edge projects to advance decarbonization, such as the start of work on Spain’s first advanced biofuels plant, the creation of the country’s largest consortium to promote renewable hydrogen and agreements to increase sustainable mobility.
- Repsol’s integrated business model and management in line with its Strategic Plan have allowed it to post a net result of €1.392 billion, taking advantage of the improved economic context compared to the first quarter of 2021 that was still influenced by the global pandemic.
- Adjusted net income, which measures the performance of the businesses, was €1.056 billion, 69% of which came from the Exploration and Production business that carries out all its activities outside Spain.
- The invasion of Ukraine, which is affecting the international environment in 2022, has led to a significant increase in the prices of raw materials. In view of this situation, that has a clear impact on fuel price increases, Repsol has contributed to alleviating the economic strain on its customers by offering significant discounts on all fuels at its service stations.
- The Exploration and Production business made progress in its focus on high-profitability projects and – driven by its flexibility and efficiency – was supported by the rise in crude oil and gas prices to post earnings of €731 million.
- The Industrial business’ earnings were €236 million, a significant improvement compared to the first quarter of 2021. The greater contribution of the Trading and Refining divisions, which in 2021 overcame difficulties stemming from the health crisis, was fundamental to this improvement.
- The Commercial and Renewables businesses, with earnings of €117 million, improved its performance slightly compared to the same period of the previous year, which was marked by the mobility restrictions resulting from the pandemic and the effects of the Filomena storm in Spain.
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