Repsol YPF

2Q 2004	1Q 2005	2Q 2005	% Variation 2Q05/2Q04	SECOND QUARTER 2005 RESULTS	Jan-Jun 2004	Jan-Jun 2005	% Variation 05/04
REPORTED EARNINGS (Million euros)
1.158	1.483	1 .440	24,4	INCOME FROM OPERATIONS	2.220	2.923	31,7
700	845	805	15,0	NET INCOME	1.318	1.650	25,2
PROFORMA INDICATORS (1) (Million euros)
1.168	1.393	1.428	22,2	ADJUSTED OPERATING INCOME	2.215	2.821	27,4
686	801	805	17,3	ADJUSTED OPERATING INCOME	1.323	1.606	21,4
*EARNINGS PER SHARE*
0,57	0,69	0,66	15,0	Euros per share	1,08	1,35	25,2
0,70	0,90	0,80	14,3	Dollars per share (2)	1,31	1,63	24,4

(1) Included to facilitate analysis of the company’s operating performance and to optimise comparison of income generated in each period. See definition in the note on page 15. The effective corporate tax rate estimated for the period has been applied to adjustments included as non-recurring items.
(2) EPS in dollars is calculated using end of period euro/dollar exchange rates. Other figures (such as net income or income from operations) expressed in dollars in the note, have been calculated using average exchange rates of the period.

SECOND QUARTER 2005 HIGHLIGHTS

• Net income in the quarter was Eu805 million. Excluding non-recurring items, adjusted net income was 17% higher year-on-year in euros and 23% in dollars. These figures were the result of sustained high oil prices and refining margins coupled with a less favourable environment for marketing, LPG and petrochemicals.

• Income from operations in second quarter 2005 was Eu1,440 million. Excluding non-recurring items, adjusted operating income was Eu1,428 million, 22% higher (28% in dollar terms). Net cash flow generated in the quarter reached Eu1,513 million and earnings per share were Eu0.66.

• Production in the quarter reached 1,179,700 boepd, similar to the 1,179,100 boepd recorded a year earlier. Gas production rose 5.7% year-on-year, mainly in Bolivia, Trinidad & Tobago, and Venezuela.

• High refining margins continued to reflect the wide differentials between light and heavy crude oil and the high spreads in medium distillates, as well as gasoline this quarter.

• On 16 June last, Moody’s upgraded Repsol YPF’s rating to Baa1 from Baa2.

• On 5 July 2005, as approved at the company’s last Annual General Shareholders Meeting held on 31 May 2005, Repsol YPF paid a gross complementary dividend of Eu0.25 per share against the 2004 financial year.

• On 31 May, Repsol YPF’s chairman, Antonio Brufau, presented the 2005/2009 Strategic Plan to analysts, shareholders, institutional investors, and employees. This plan outlines the Company’s main lines of action for the mentioned period and is based on four key factors: growth in the upstream and LNG areas, strong cash generation in the downstream and ABB units, transformation of the asset portfolio, and cost savings, all of which will contribute to ensuring sustained dividend growth for shareholders, with a 20% higher dividend in 2006.