Repsol posts 9.9% increase in net income for first-half 2006
Spain-based gas and oil major Repsol YPF’s first-half 2006 results posted on Thursday reported a 9.9% increase in net income from EUR 1.62 billion in H1 ‘05 to EUR 1.78 billion in H1 ‘06, with income from operations up 8.3% year-on-year to EUR 3.29 billion.
Income from gas and power operations in the first half totalled EUR 246 million against EUR 196 million in the same period a year earlier, mainly attributable to larger capital gains from the sale of Enagas shares and a positive earnings performance by Gas Natural.
Investments in Gas & Power during the first six months totalled EUR 165 million, “much lower” than the 2005 equivalent, which included the acquisition of Dersa, a wind power generation company.
In the first half 2006, crude oil prices were high, with Brent oil rising 32.3%, while the international refining margin indicator fell 15.7% as well as in chemicals where margins narrowed while energy costs rose.
Repsol YPF net debt at the end of first half 2006 was down 16% to EUR 4,111 million from year end 2005. The high cash flow generated in the period was sufficient to finance investments, dividend payout, and an increase in working capital resulting from the rise in oil prices. The depreciation of the dollar against the euro in this first half caused a EUR366 million nominal debt reduction.
The net debt to capitalisation ratio as of June 2006 was 16.1%, falling nearly 2.5 percentage points since March 2006. RT
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