Repsol beats expectations and reaches a net income of 1.736 billion euros in 2016
Press Release23/02/2017 15:00
The company reported its highest net income in four years in 2016, reflecting the strength and flexibility of its business units and the success of the action plan put in place in response to falling crude oil and gas prices.
Adjusted net income, at 1.922 billion euros, also exceeded that of 2015. This is especially significant considering that 2015 included 500 million euros in exceptional financial gains related to the sale of the company’s stake in YPF.
The company’s EBITDA reached 5.226 billion euros, an 18% increase from the 4.416 billion reported the previous year.
The company ended the year with average hydrocarbons production of 690,200 barrels of oil equivalent per day (boe/d), a 23% increase from 558,900 boe/d in 2015.
The Upstream unit (exploration and production) showed a great capacity to adapt to lower oil prices, and achieved an income of 52 million euros, 977 million euros greater than the previous year.
The Downstream unit (Refining, Chemicals, Marketing, Lubricants, Trading, LPG and Gas & Power) confirmed its strength with an adjusted net income of 1.883 billion euros. This growth reflects the competitive advantages of its integrated business model, the quality of its refining assets and the good performance of the Chemicals and commercial businesses.
Net debt fell 32% to 8.144 billion euros (1.6 times EBITDA), based on the strong cash generation capacity of the company’s business units, the success of its efficiency program and its asset management.
Repsol’s shares rose 33% and recorded one of the largest increases on the IBEX35 index and in the European oil and gas industry.