Repsol posted net income for the first half of the year of 1.036 billion euros, a 22.9% decline from the year-earlier period, when net income was 1.344 billion euros.
Excluding YPF, which is no longer consolidated into the Repsol Group, first half net income, was 903 million euros, 14.6% lower due to the decline in the value of inventories which the company holds as part of the country’s strategic reserve.
Net income from the company’s continued operations excluding the effect of inventories (current cost of supply) rose 3.1% to 894 million euros from 867 million in the same period of the previous year.
Operating income for the first six months of the year was 1.966 billion euros, affected by the aforementioned effect of the inventory valuations. Excluding this effect, operating income (CCS) rose 10.4% to 1.972 billion euros.
The Upstream unit (exploration and production) continued the strong performance seen the first quarter, with operating income rising 41.9% to 1.144 billion euros.
Operating income at the LNG business in the first half of 2012 was 237 million euros, compared to 168 million euros for the same period the previous year. The 41.1% improvement was mainly due to better LNG commercialisation margins.
Operating income from the Downstream unit (refining, marketing, liquid petroleum gas, new energy, chemicals and trading) was directly affected by the lower value of inventories based on the benchmark prices.
Added to this was the effect of the current economic situation, whose impact on the chemicals and marketing businesses was partially compensated by improved refining and LPG margins.
[mappress]
LNG World News Staff, July 26, 2012