Repsol lost 2.484 million from the impact as unprecedented for the pandemic

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Javier Gonzalez NavarroSEGUIRMadrid Updated: Save Send news by mail electrónicoTu name *

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Repsol recorded a net loss of 2.484 million euros in the first half of the year after signing up a few impacts of 2.673 million euros by the pandemic of the Covid-19 in the valuation of its inventories and the review in its assumptions of future prices of crude oil and gas and the adjustment of the value of its assets “upstream” (exploration and production), as reported today by the company.

The situation “unprecedented,” caused by the coronavirus -explains the company- impact on the prices of crude oil and gas of the international benchmark, which suffered large falls, especially during the second quarter of the year, in which the world demand experienced the biggest collapse in history. Brent crude oil recorded between April and June, an average reduction of 57% compared to the same period of the previous year, while the price of WTI was 53%, in both cases, with average prices below $ 30 per barrel. The gas also reflected the difficult environment, with a fall half-semester rose by 40% to the Henry Hub. This has had a negative impact of 1.088 billion euros in the inventories of the company.

in Addition, the group chaired by Antonio Brufau has adjusted its assumptions of prices, which has affected the book value of their assets “upstream” , reflecting a impact of 1,585 million euros.

In this challenging environment for the sector by the health crisis of the coronavirus, the net adjusted result of the oil company, which specifically measures the performance of the business, amounted to 189 million euros.

The company stresses that has reinforced its financial strength with the issuance of bonds by value of 3,000 million euros. The net debt was reduced by, approximately, 500 million and the liquidity reaches close to 10,000 million euros, to 2.43 times the short-term maturities.

The chief executive officer, executive officer, Josu Jon Imaz, stated that “we are meeting the goals of our Resilience Plan, ensuring the robustness of our balance sheet and reiterating our commitment to leading the energy transition and achieve the zero net emissions by 2050″.

All businesses of Repsol achieved a positive operating cash flow in the first six months of 2020, “working in an environment extraordinarily challenging to put to the test their capacity for innovation and made visible the essential contribution of its products and services for the functioning of society”.

So, the commercial business and renewable obtained a score of 163 million euros, weighed down by the slowdown in demand. The confinement and mobility restrictions imposed to combat the Covid-19 reduced sales in the service station network in the second quarter, a 48% compared with the same period of 2019, coinciding in large part with the state of alarm in Spain.

Repsol makes the leap to Chile with renewable

on the other hand, Repsol has partnered with the group Ibereólica to create a ‘joint venture’ for the development of a portfolio of wind and solar projects in Chile with a total of 2.6 gigawatts (GW), thus the jump in its international expansion in renewable energies.

In particular, the agreement gives it access to a portfolio of projects in the south american country that Ibereólica Renewable has in operation, construction or development, of more than 1,600 megawatts (MW) until the year 2025, as well as the possibility of overcoming, thanks to this alliance, the 2,600 MW by 2030, reported the company.

The agreement will be materialised through a capital increase by approximately $ 192 million (about 168 million euros), to be endorsed by the oil within this year, with disbursements up to the year 2023. In this way, Repsol will own 50% of the ‘joint venture’ is created with group Ibereólica Renewable in the andean country.

The energy indicated that these funds contributed in the capital increase will reinforce the own resources of the joint venture and will develop and build in the next five years five renewable projects in Chile, three wind farms and two photovoltaic, with a total installed capacity of over 1,600 MW.