Repsol profit surges 57% on refining margin amid Iran war, still below forecast
Repsol's First-Quarter Financial Performance and Market Impact
Strong Profit Growth Driven by Refining Margins
MADRID, April 30 (Reuters) - Spain's Repsol posted on Thursday a nearly 57% increase in first-quarter adjusted net profit as oil refining margins soared, and said it will increase its kerosene production by 15% to 20% amid global jet fuel supply disruption due to the Iran war.
Financial Results Compared to Forecasts
Spain's main refiner and oil producer booked an adjusted net income of 873 million euros ($1.02 billion), still undershooting a company-provided average forecast of 897 million euros. Its refining margin in Spain more than doubled from a year ago to $10.9 per barrel.
Impact of Global Events on Performance
The company said the result was "influenced by the volatility of a global macroeconomic environment shaped by the conflict in the Middle East" and the company allocated 1.2 billion euros in the quarter to increase its crude oil inventories and maximize the available feedstock.
Repsol's Strategic Response
Diversification and Supply Continuity
"Repsol, which has no assets in the Middle East and has a diversified portfolio of feedstock supplies, is concentrating its efforts on ensuring the continuity of energy supply ... while mitigating the impact of fuel price volatility on Spanish society by applying additional discounts at its service stations," it said.
EBITDA Performance
Adjusted earnings before interest tax, depreciation and amortisation (EBITDA) soared 110% to 2.61 billion euros.
Shareholder Commitments and Additional Information
Repsol also said it was on track to meet full-year commitments on shareholder remuneration.
($1 = 0.8576 euros)
(Reporting by Madrid and Gdansk bureaus, editing by Andrei Khalip)
