The adjusted net income of the Upstream area reached 224 million euros, an increase of 207 million euros over the 17 million euros registered in the first quarter of 2016.
The efficiency and synergies program, together with the partial recovery of international raw materials price indices, helped to boost earnings for the business.
Average production for the quarter was 693,400 barrels of oil equivalent per day, an increase over the production average reached at the end of 2016 and in line with the goal set by the company in its strategic plan.
Repsol increased its average production mainly due to activity in the United Kingdom, resumed activity in Libya and the startup of the Lapa reservoir in Brazil. This project in Brazil, which began producing in December 2016, contributed considerably to the company’s new record for production in that country, set in March of this year.
In terms of exploration activity, in March, Repsol announced the largest conventional hydrocarbon discovery on U.S. soil in the last 30 years, in the North Slope borough of Alaska. It is estimated that the contingent resources of the area where the discovery was made, known as Nanushuk, will total approximately 1.2 billion recoverable barrels of light crude oil.
The net adjusted result for the Downstream area totaled 500 million euros, in line with the 556 million euros obtained in the first quarter of 2016.
In the first quarter of the year, the area maintained its solid cash generation, which reflects the competitive advantages of the integrated business model and the quality of Repsol’s assets.
The commercial and chemicals businesses continued to demonstrate their strength this quarter, in addition to improved activities in Trading and Gas & Power, Marketing and refining in Peru.
The refining margin indicator in Spain was 7.1 dollars per barrel, yet another strong quarter to consolidate the strength seen in the last two years, surpassing the 6.3 dollars per barrel obtained in the first quarter of 2016.
These results are especially positive considering that during the first quarter of 2017, planned maintenance shutdowns were carried out at the refineries in Bilbao and A Coruña. These halts have allowed the company to implement improvements in innovation, efficiency and productivity at its facilities, to maintain Repsol as one of Europe’s leading refining companies.
This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol’s financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words “expects”, “anticipates”, “forecasts”, “believes”, estimates”, “notices” and similar expressions. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol’s control or may be difficult to predict. Within those risks are those factors described in the filings made by Repsol and its affiliates with the Comisión Nacional del Mercado de Valores in Spain and with any other supervisory authority of those markets where the securities issued by Repsol and/or its affiliates are listed.
Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.
This document mentions resources which do not constitute proved reserves and will be recognized as such when they comply with the formal conditions required by the system “SPE/WPC/AAPG/SPEE Petroleum Resources Management System” (SPE-PRMS) (SPE – Society of Pretroleum Engineers).
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The information contained in the document has not been verified or revised by the External Auditors of Repsol.