Gas Trading Drives Spanish Energy Major Repsol Positive Earnings Surprise

Spanish integrated energy company Repsol first quarter earnings crushed earnings expectations. Repsol posted a net income of €1.112 billion ($1.227 billion) up from just over €1 billion in the corresponding quarter of 2022. The result was powered by its gas trading business and beat adjusted net income forecasts by 26% Redburn said. Upstream results beat forecasts, with adjusted net income of €474 million ahead of the €454 million consensus, according to Redburn.

Repsol Brazil Offshore

Josu Jon Imaz, chief executive of the company, called the results solid and said progress in developing its integrated business model was key to achieving this result “in a quarter in which crude oil prices fell by an average of 20%, compared to the same period the previous year”.


  • Repsol’s earnings before interest, taxes, depreciation and amortization came in at EUR2.70 billion, down 20% on year.
  • Quarterly net profit was 1.11 billion euros ($1.23 billion) compared with EUR1.39 billion in the year-earlier period.
  • Adjusted net profit EUR1.89 billion from EUR1.06 billion, compared with analysts’ expectations of EUR1.51 billion.
  • Sales for the quarter dropped to EUR15.30 billion from EUR17.25 billion.
  • Total production averaged 608,000 barrels of oil equivalent a day in the quarter, up 8.8% on year.

Refining margins are now falling after last year in Europe where strikes at French refiners last year got back to work and demand from factories using oil furnaces to save money on natural gas has reverted with the collapse of European Natural gas prices. Diesel prices in Europe had risen 60% over the past year and hit record highs last spring.

Diesel powers a bigger share of the auto fleet in Europe than in the U.S. after governments pushed drivers to adopt the fuel to reduce carbon emissions. Europe failed to upgrade its refineries to produce more diesel and shut down several plants during the pandemic, increasing its dependency on Russia.

Since then Repsol said it invested €1.726 billion during this quarter, mainly in Spain and the US and expects 35% of investments in 2023 to be allocated to low-carbon projects.

Repsol’s hydrocarbons production averaged 608,000 barrels of oil equivalent per day in the first quarter, up 9% from the same period of 2022.

Imaz stated: “Our integrated business model, as well as the fulfillment and ambition of our strategic plan, are key to delivering solid results. At the same time, we continue to raise our multi-energy profile and make progress in decarbonisation.


In January, a cash dividend of €0.35 gross per share was paid out. The same amount will be proposed to the Annual General Meeting for distribution in July. With these payments, Repsol will increase cash remuneration for its shareholders by 11% in 2023, in addition to a capital reduction of 50 million shares.

Source: TC, Upstream