In the first quarter of this year, Repsol left behind the losses of the two previous years. The company obtained up to March a net profit of 648 million euros , compared to the losses of 487 million euros registered in the same period of the previous year, when it proceeded to a strong adjustment in its inventories due to the decrease in the prices of crude oil and of gas and the collapse that was already noticeable in demand due to the start of the coronavirus pandemic.
The group recorded losses of 3,816 million euros in 2019 due to the depreciation of assets in North America and 3,289 million euros in 2020 due to the collapse in the price and global demand of energy caused by the pandemic.
According to the company, the earnings for the January-March period have been based on ” efficient management” that has allowed it to face the difficult context caused by the covid-19 crisis , despite the fact that the pandemic has continued to “weigh on the global economy. during the first months of the year “, which has allowed it to take advantage of the recovery that began to be observed in crude prices after their steep fall in 2020 and improve the figures obtained in the same period last year.
Adjusted net income, which specifically measures the progress of the group’s businesses, stood at 471 million euros, 5.4% higher than the first quarter of last year, with an outstanding performance in the exploration and production and production areas. chemistry.
Thus, the company chaired by Antonio Brufau pointed out that Repsol’s integrated business model has been “decisive” in achieving a positive figure in a context of great difficulty, which notably affected refining and mobility.
In this sense, the implementation of the 2021-2025 strategic plan , launched by the group last November, together with the measures it has implemented to deal with the pandemic, showed its effectiveness and was reflected in an improvement in both results with respect to those obtained in the same period of 2020.
Renewables in the stock market and with a partner
In addition, all its businesses obtained a positive operating cash flow , which for the group as a whole amounted to a total of 1,030 million euros, and a positive free cash flow, which amounted to a total of 507 million.
Repsol’s CEO, Josu Jon Imaz , valued the positive performance obtained by the group this quarter “in an extremely difficult environment that forces us to continue working hard, in the most efficient and flexible way possible.”
The company does not rule out combining the IPO and the incorporation of a partner to grow its renewables business , according to Imaz. In a conference with analysts to present the results of the first quarter, he indicated that the group is working to prepare its renewables business and have “the right vehicle” in financial terms to “accelerate” its growth.
In this sense, he pointed out that the IPO is an option, although he did not rule out “a combination” of this with the incorporation of a partner that allows to develop this business with the lowest possible cost of capital and that helps in the middle or long term to prepare that jump to the market of the renewable area.
In any case, the executive stressed that the group still has 13 months to go within the deadline given to make a decision, so he insisted that “they are not in a hurry.” What he did make clear is that the group’s objective is not to divest from this renewables business, but to “promote”, since “it is going to be important and fundamental for Repsol”.