Repsol posted net income of 2.341 billion euros in 2018, a 10% increase from the 2.121 billion earned in 2017 and the highest in eight years.
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This was achieved with average Brent oil prices at 71 dollars per barrel last year, compared with more than 111 dollars in 2011.
Adjusted net income, which specifically measures the progress of Repsol’s businesses, increased 10% to 2.352 billion euros, exceeding the 2.131 billion recorded in the previous year.
In addition to the strength of its businesses, these results reflect Repsol’s adaptability and innovation—particularly following the implementation of the efficiency program in recent years—as well as its flexibility to incorporate and develop new capabilities.
All of this has allowed the company to increase value generation while simultaneously playing a more active role as a multi-energy provider.
Repsol’s integrated business model allowed it to take full advantage of improved oil prices - Brent was 32% higher than in 2017 – although they remained far from their historic highs.
In contrast, the Henry Hub gas benchmark averaged a price similar to last year.
In this context, the Repsol Upstream unit doubled its earnings to 1.325 billion euros, continuing the positive trend of previous years.
The increase in production and rising oil prices were integral to this positive performance, as were the efficiency measures and digitalization programs, which continue to demonstrate their effectiveness.
The Repsol Downstream unit earned 1.583 billion euros, with improved performance from the commercial businesses, Marketing and LPG (liquefied petroleum gas), and positive results from Trading & Gas.
The RepsolChemicals unit was affected by a worsening international environment, maintenance shutdowns at some industrial facilities, which also affected refining, and the weakness of the dollar against the euro.
Repsol’s EBITDA increased to 7.513 billion euros, 12% higher than the 6.723 billion in the previous year.
Repsol’s positive business performance, along with the sale of its stake in Naturgy Energy Group, led to a 45% fall in net debt to 3.439 billion euros, compared with the 6.267 billion at the end of 2017.
Meanwhile, liquidity rose to 8.742 billion euros by late December. ■