Higher oil prices help Repsol beat expectations with surging profits

Repsol beat expectations today as production increased and oil prices ticked upwards.

The Spanish oil and gas firm said it is on track to meet its objectives until 2020, including a €15bn (£13bn) investment drive, and debt reduction.

Net profit, adjusted for one-off gains and inventory effects, increased 7.5 per cent to €632m last year, compared to 2017.

This beat analysts’ projections of €601m, according to figures provided by the company.

It had based its own targets on an oil price at around $50 per barrel, well below the $66 price which Brent crude is trading at this evening.

Revenue increased 21 per cent to €49.7bn, while net income before tax rose 7.2 per cent to €3.3bn.

However, net debt ballooned to €3.44bn at the end of December, from €2.3bn in September after the company closed a deal for electricity assets from Spanish Viesgo as part of a bid to lower emissions.

However, this is still a major reduction from Repsol’s €6.27bn debt at the end of 2017.

Last year the company started new projects in Algeria, Trinidad and Tobago, Britain, Peru and Malaysia.

It said exposure to Brexit is limited to its stake in one oil and gas North Sea subsidiary.

Shares fell 0.17 per cent to €15.12.