Repsol doubles its results and earns more in the first half than in all of 2021

Repsol has presented its results for the first half of 2022, a period marked by the war in Ukraine and by the energy crisis with fuel prices soaring.

In these six months, the company obtained a net profit of

, more than everything it earned in 2021 (2,454 million, which were then the company's best results in a decade) and twice as much as in the first half. of that year, when the profit was 1,235 million euros.

The firm, as several energy companies have done during this results season - which coincides with the tax on electricity and banking that the Government is going to present - contextualized the data in a press release.

Thus, he framed them in a "volatile environment" and recalled that, even together with those of the previous year, they only "partially" compensate for the losses of 2019 and 2020,

a result of asset adjustments to be zero emissions net income and the global health pandemic".

In addition, Repsol recalled that the "volatile international context" and "greater regulatory pressure on fossil fuels in the European Union" have caused the company to record provisions for impairment of the book value of its refining assets: 1,844 million euros.

With regard to regulation, the company directly mentions

in the European Union as of 2035. "Repsol maintains its desire to undertake a profound transformation in its industrial complexes to become poles energy sources and guarantee their future sustainability", they point out.

Benefits in refining

One of the many consequences of the Russian invasion of Ukraine is a considerable increase in the price of gasoline.

The company acknowledges the rise in raw materials in international markets, although in the case of fuels, not only the price of a barrel of oil influences, but also the refining process, where, precisely, the oil companies have a little more margin to adjust benefits.

After two years with negative results, the Industrial area, which encompasses this activity, obtained

.

However, they also explain that in recent weeks the margin has fallen and is at single-digit levels after reaching 23.3 dollars per barrel in the second quarter.

In this sense, they highlight that they have invested 1,000 million euros per year in these facilities, while Europe reduced its capacity.

"This has made it possible to increase and optimize the use of these assets to respond to supply tensions in the international fuel market caused by the war in Ukraine, in addition to contributing to maintaining employment," argues the firm.

They also consider that this "competitive advantage" will allow Spain to guarantee the supply of gasoline, diesel and kerosene in the coming months, unlike other countries.

Reorganization

Josu Jon Imaz

, CEO of Repsol, appealed to the "effort" they are making to continue creating jobs and transforming themselves into a zero-emissions company, which "is being remarkable."

In addition, he recalled the work they do to guarantee supply.

All this, "despite the fact that the international context is uncertain and that we have just begun to overcome a pandemic that is dragging significant losses."

The oil company also announced changes in its leadership.

Francisco Gea, who held the position of director of M&A (Mergers and Acquisitions), will now lead Exploration and Production (Upstream) to replace Tomás García Blanco, who will be deputy to the CEO for Special Projects (a change motivated by "personal reasons" ).

The corporate director of Digitization and Global Services, Valero Marín, assumes the Client business;

Until now, the person in charge of the area,

, is leaving Repsol "after expressing her desire to start a new professional stage outside of Spain".

Meanwhile, João Costeira, executive director of Low Carbon Generation, will be in charge of managing the Renewables and Low Carbon Generation business, which until now was also led by María Victoria Zingoni.

The general director of Energy Transition, Technology and deputy to the CEO, Luis Cabra, incorporates Digitization and Cybersecurity to his responsibilities, and the Economic-Financial General Director (CFO), Antonio Lorenzo, assumes Global Services and Purchasing.

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