May 22, 2013
Repsol Q2 falls on weak upstream
Spain's Repsol YPF SA said today adjusted net profit fell 7.3 percent in the second quarter of the year due to the loss of production in Libya and strikes at its Argentine division.
Repsol's earnings beat forecasts from a poll of eight analysts thanks to continued strong production at the group's LNG operations and an improvement in financing costs.
"They've come in a bit higher than forecasts, but that's no great shakes, upstream wasn't quite as bad as expected and financial cost performance was quite positive," CIMD oil analyst Alvaro Navarro said.
Second-quarter net profit adjusted for one-time gains and inventory effects (CCS adjusted net) fell 7.3 percent to 485 million, but beat forecasts for 424 million.
Adjusted recurrent operating profit (CCS adj EBIT) fell 24 percent to 963 million but beat forecasts for 920 million.
A full quarter of lost oil production in Libya denied Repsol, which produces mainly gas, the chance to take full advantage of rising oil prices with production focused on gas prices which remain weak despite a partial recovery.
Repsol will hold a conference call at 1000 GMT.