Repsol YPF

3Q 2005	2Q 2006	3Q 2006	% Variation 3Q06/ 3Q05	THIRD QUARTER 2006 RESULTS	Jan-Sep 2005	Jan-Sep 2006	% Variation 06/05
REPORTED EARNINGS (Million euro)
1,759	1,690	1,772	0,7	INCOME FROM OPERATIONS	4,800	5,066	5,5
950	920	869	-8,5	NET INCOME	2,571	2,651	3,1
PROFORMA INDICATORS (Million euro)
1,814	1,602	1,616	-10,9	ADJUSTED OPERATING INCOME	4,862	4,802	-1,2
951	857	844	-11,3	ADJUSTED NET INCOME	2,527	2,545	0,7
EARNINGS PER SHARE
0,78	0,75	0,71	-8,5	Euro per share	2,11	2,17	3,1
0,94	0,96	0,90	-4,3	Dollars per share	2,54	2,75	8,3

THIRD QUARTER 2006 HIGHLIGHTS

Net income in the third quarter was Eu869 million. These quarterly results benefited from high crude oil prices similar to those of second quarter 2006, but suffered a significant cut in refining margins in comparison with the extraordinary margins posted in third quarter 2005 due to the effect of the hurricanes in the Gulf of Mexico.

Income from operations in third quarter 2006 was Eu1,772 million. Excluding non-recurring items, adjusted operating income reached Eu1,616 million. EBITDA was Eu2,424 million, down 3.0% year-on-year, and earnings per share were Eu0.71.

Production in the quarter was 1,128,100 boepd, 2.5% less than the 2005 equivalent, mainly because of the migration from operating concessions to joint ventures in Venezuela as of last April, and lower production in Argentina, partially compensated by an increase in production in Albacora Leste (Brazil), Trinidad & Tobago, and Camisea (Peru).

Sacyr Vallehermoso, with the announcement on 16 October last that it had acquired 9.24% of Repsol YPF capital equity, has joined the company as a new long-term shareholder, thereby reaffirming the independent business and industrial project of Repsol YPF as detailed in the corporation’s Strategic Plan. On 15 November, Sacyr Vallehermoso announced that the total stake in the company, held directly and indirectly, is higher than 15%.

In Bolivia, on 29 October, Repsol YPF and the Government of Bolivia executed the new operating agreements that will govern the company’s activities in this country within the new legal framework established by the Bolivian authorities pursuant to the new Hydrocarbon Law and the Nationalisation Decree enacted on 1 May of this year.

On 10 November 2006, BHP Billiton, jointly with Hess Corporation and Repsol YPF, announced that the consortium had acquired the Genghis Khan field from Anadarko Petroleum Corporation. The field has the same geological structure as the Shenzi project. The total cost for the transaction is $1.35 billion dollars and includes oil and gas reserves estimated at 65-170 million barrels of oil equivalent.