Repsol YPF

3Q 2004	2Q 2005	3Q 2005	% Variation 3Q05/3Q04	THIRD QUARTER 2005 RESULTS	Jan-Sep 2004	Jan-Sep 2005	% Variation 05/04
REPORTED EARNINGS (Million euros)
1.221	1.440	1.577	29,2	INCOME FROM OPERATIONS	3.441	4.500	30,8
767	805	934	21,8	NET INCOME	2.085	2.584	23,9
PROFORMA INDICATORS (1) (Million euros)
1.231	1.428	1.639	33,1	ADJUSTED OPERATING INCOME	3.446	4.460	29,4
774	805	948	22,5	ADJUSTED OPERATING INCOME	2.097	2.554	21,8
*EARNINGS PER SHARE*
0,63	0,66	0,77	21,8	Euros per share	1,71	2,12	23,9
0,78	0,80	0,92	17,9	Dollars per share (2)	2,11	2,55	20,9

(1) Included to facilitate analysis of the company’s operating performance and to optimise comparison of income generated in each period. Please see definition in the note on page 25. 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 for the period.

THIRD QUARTER 2005 HIGHLIGHTS

• Net income in the quarter was Eu934 million. Excluding non-recurring items, adjusted net income was 22.5% higher year-on-year. These quarterly results reflect high crude oil prices and refining margins, and the gradual reduction of international chemical margins, following the trend begun last quarter.

• Income from operations in third quarter 2005 was Eu1,577 million. Excluding non-recurring items, adjusted income from operations was Eu1,639 million, 33.1% higher. After tax cash flow in the quarter reached Eu1,789 million and earnings per share were Eu0.77.

• Production in the quarter reached 1,157,200 boepd, a 4.4% less than a year earlier. Gas production dropped 2.5% year-on-year, mainly in Argentina because of mild winter temperatures, and in Trinidad & Tobago due to scheduled turnarounds in the liquefaction and Atlas Methanol plants. On the upside, both Bolivia and Venezuela increased gas production while oil production rose in Libya.

• Refining margins were slightly higher quarter-on-quarter. This trend was quite irregular, however, with margins weakening in July and August before climbing to record highs in September, when hurricanes blowing in from the Gulf of Mexico forced the shutdown of U.S. refineries.

• On 5 September, Gas Natural SDG announced its tender offer on 100% of Endesa shares. Repsol YPF has expressed its support for the proposed transaction since it would create value for all shareholders, and highlighted its positive implications for strengthening joint operations.