Repsol’s announce YTD net income of €1.939 billion

Repsol posted an adjusted net income, which specifically measures business performance, of €1.582 billion between January and September 2021, the period when implementation of its 2021-2025 Strategic Plan began. The measures defined in the Plan, together with an efficiency-oriented management, have allowed the company to capture the maximum possible value and return to pre-pandemic results in a context in which there has been a clear recovery in commodity prices. At the same time, the company has made steady progress toward achieving its decarbonization targets, recently reinforced with new, more ambitious goals that mark its transformation to carbon neutrality by 2050.

Net income was €1.939 billion between January and September 2021, higher than in the same period in 2019 (€1.466 billion), prior to the COVID-19 crisis. Adjusted net income was flat compared to 2019 (€1.637 billion), demonstrating the effectiveness of Repsol’s new strategy. Results for the third quarter beat the consensus of financial analysts who follow the company’s activity.

Repsol’s integrated business model, together with the implementation of its Strategic Plan, was decisive in enabling the company to successfully overcome an unprecedented crisis scenario. All business segments achieved positive results, especially Exploration & Production, particularly influenced by the upward trend in commodity prices. The Chemicals area continued the exceptional performance observed in previous quarters, Renewables increased its contribution to the Group, and the Mobility and Aviation businesses improved their performance after the lifting of part of the mobility restrictions resulting from the health crisis.

In the first nine months of the year, crude oil and gas prices returned to pre-pandemic levels, with Brent crude trading at an average of $67.90 per barrel and the Henry Hub at $3.20 per MBtu. In this context, the company also achieved positive operating cash flow in all its business segments, amounting to €3.371 billion, as well as positive free cash flow in all segments, totaling €1.855 billion. In addition, between January and September 2021, Repsol reduced its net debt by 9% (€642 million) compared to last December, to €6.136 billion. As a result, liquidity stood at €9.948 billion, representing 2.57 times the short-term maturities.

In 2021, the company strengthened its financial position with various bond issues and presented a comprehensive sustainable financing strategy, incorporating its sustainability roadmap into its financing strategy.

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