Repsol YPF

4Q 2005	3Q 2006	4Q 2006	% Variation 4Q06/4Q05	FOURTH QUARTER 2006 RESULTS	Jan-Dec 2005	Jan-Dec 2006	% Variation 06/05
REPORTED EARNINGS (Million euro)
1,361	1,772	845	-37.9	INCOME FROM OPERATIONS	6,161	5,911	-4.1
549	869	473	-13.8	NET INCOME	3,120	3,124	0.1
PROFORMA INDICATORS (Million euro)
1,832	1,616	974	-46.8	ADJUSTED OPERATING INCOME	6,694	5,776	-13.7
998	844	547	-45.2	ADJUSTED NET INCOME	3,525	3,092	-12.3
EARNINGS PER SHARE
0.45	0.71	0.39	-13.8	Euro per share	2.56	2.56	0.1
0.53	0.90	0.51	-3.8	Dollars per share	3.03	3.37	11.2

FOURTH QUARTER 2006 HIGHLIGHTS

- Income from operations in fourth quarter 2006 was Eu845 million. This year-on-year drop, despite higher oil prices, with the exception of Argentina, is due to several factors, including increased taxes, exploration costs, and rising costs throughout the industry. Results were also affected by the evolution of refining margins due to the stock losses and the depreciation of the dollar against the euro. Excluding non-recurring items, adjusted operating income was Eu974 million. EBITDA was Eu1,918 million, 22.5% less than in fourth quarter 2005, and earnings per share were Eu0.39.

- Net income in the fourth quarter was Eu473 million. Excluding non-recurring items, adjusted net income was Eu547 million.

- Production in the quarter was 1,101,100 boepd, 1.4% down against fourth quarter 2005, principally as the result of the migration from operating concessions to joint ventures in Venezuela as of last April and decreased liquids production in Argentina. Production growth in Trinidad & Tobago, Albacora Leste (Brazil), Camisea (Peru), and higher gas production in Argentina partially compensated these effects.

- Sacyr Vallehermoso notified the Spanish stock market authorities, the Comisión Nacional del Mercado de Valores (CNMV) on 26 November 2006 that its stake in Repsol YPF was 20.01%, thereby becoming Repsol YPF’s largest shareholder.

- On 11 January 2007, Repsol YPF paid an interim dividend against 2006 of Eu0,36 (20% higher than the interim dividend paid in 2005) in keeping with the Company’s Strategic Plan contemplating an annual double-digit increase.

- The Repsol YPF Board of Directors on 31 January 2007 approved the appointment of José Manuel Loureda and Manuel Raventós as institutional outside directors to fill the vacancies produced by the resignation of Ignacio Bayón and Ricardo Fornesa, respectively.

- On 9 February 2007, REPSOL INTERNATIONAL FINANCE B.V., completed two 5 and 10-year bond issues, guaranteed by Repsol YPF, for the amount of Eu750 and Eu500 million, respectively.

- On 23 January 2007, Repsol YPF submitted the Development Plan, pending definitive approval, to the state-owned company NOC, for field I/R in blocks NC 115/NC 186, which has 1,261 million barrels of oil in place and 474 million barrels of recoverable reserves. These reserves were discovered over the course of the last two years.