Repsol Doubles Q2 Earnings on Higher Oil Prices

Spanish energy giant Repsol more than doubled its second-quarter net income from a year earlier as higher oil prices offset lower gas realizations and weak refining margins.

Repsol reported a net income of $713 million (657 million euros) for the second quarter this year, more than double compared to $334 million (308 million euros) for the same period of 2023.

The company, which is expanding its renewables assets and generation, continues to book most of its earnings from the upstream division, which benefited from higher oil prices in the second quarter and the first half of this year, compared to year-ago levels.

However, natural gas realizations were lower, due to a slide in gas prices, while weaker refining margins hit the downstream business of the Spain-based energy group.

Commenting on the second-quarter and first-quarter results, Repsol said “The results for the first half of 2024 came against a backdrop of recovering crude oil prices, low gas and electricity prices, slowing refining margins and very low margins at the Chemicals business.”

Repsol also reported for the first half of 2024 lower earnings in its Industrial division, due to lower margins at the refining and oil and gas trading businesses and poor market conditions for the Chemicals segment.

Adjusted income for the first six months of the year fell by 21.8% from the same period of 2023, to $2.3 billion (2.126 billion euros), “in an environment marked by low gas prices and narrower refining margins.”

TotalEnergies also flagged weak gas realizations and lower refining margins in its Q2 earnings. The French supermajor reported on Thursday lower-than-expected net income amid lower LNG sales and prices and weaker refining margins.

TotalEnergies booked an adjusted net income of $4.7 billion for the second quarter, down by 9% from the first quarter and also down from the $4.96 billion earnings for the second quarter of 2023. The Q2 2024 adjusted net income missed the analyst consensus estimate of a net profit of $4.96 billion.

By Tsvetana Paraskova for Oilprice.com

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