Repsol

LNG Results for 2009

Income from the LNG operations' activity was -€61 million 2009
as against the +€125 million obtained the previous year. The estimated EBITDA is €150 million (€173 million in 2008).

2009 was marked by the global economic crisis, which was reflected in the international trend in natural gas prices. After reaching bottom prices towards the end of 2008, there has not been a recovery similar to that seen with oil prices and the great divergence between the referral indices of these two commodities continued throughout the year. The average Henry Hub price, the main benchmark index for natural gas, was 4 dollars/MBtu, which is 55.6% down on 2008. This index continued its downward trend until well into 2009, when it reached a 7 year minimum at $2.5 per MBtu, finishing the year at $5.8 per MBtu.

The fall in demand for gas coincided with the start-up of increased liquefaction capacity and growing non-conventional gas production in some countries, such as the United States, which intensified the fall in price for this commodity.

Regarding the electrical generation market, the average accumulated price of the Spanish electrical pool was €37/ MWh in 2009, 42.6% below the 2008 price. This descent was caused mainly by lower demand, by the fall in international commodity prices and by the reduction in CO2 emission rights fees. The volume of the daily market movement in the Spanish electrical system was also lower (238 TWh in 2009, compared to 266 TWh in 2008).

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