cesa It turned red in the first quarter of the year as a new tax was levied on large energy companies created by the government, which taxed companies at 1.2% on the previous year’s total sales. The oil company noted Net loss of 297 million euros until March, compared to last year’s 265 million benefits.
The energy company, controlled by Abu Dhabi’s (Mubadala) state wealth fund, openly blames losses on the exceptional burden of paying the new tax, which it will face this year at a cost of 323m euros, and has been fiercely critical of rigidity. Tax design approved by the Manager for taxation of the company’s total sales.
“The fact that the extraordinary tax on Spanish energy companies hurt Cepsa in the first quarter according to international financial reporting standards shows this. poor design and disproportionate effect For a company like Cepsa, which has invested heavily in Spain’s energy future, the net profit is more than twice that of our main competitors,” he complains. Maarten Wetselaar, CEO of Cepsa. There is no doubt that these are uncertain times, especially in the energy markets and regulatory environment.”
the company actually paid only about half of the tax this quarter, 164 million euros, but you have already included the accounting burden of the total tax you will have to face. According to the group, Cepsa’s total tax contribution in the first quarter reached 1,786 million euros, of which 67%, or 1,192 million euros, was paid in Spain.
Increased profitability in refineries
Adjusted net profit (not taking into account some extraordinary items) amounted to €176 million through March, almost tripling from 58 million in the same period last year. Adjusted gross operating profit (in favour) reached 556 million, down 8% in the quarter from last year’s levels.
The company notes the following in its accounts: oil price drop (20% in one year, 8% less than in the last quarter of last year), however, it continues to increase the profitability of its refineries due to the market situation and the decrease in the price of natural gas used in power plants. The exploration and production field performed worse with 310 million ebitda adjusted 19% less due to lower oil prices and lower production. And the chemistry business also cut ebitdas by up to 64 million (42% less) due to shrinking demand.
But, The profitability of the group’s refineries continues to increase rapidly. The energy segment, which also includes refining, increased by 48% year-on-year to 211 million Euros between January and March. During the quarter, refining margins rose sharply to an average of $11.1 per barrel, five times from $2.2 in the first quarter of last year and over $8.7 per barrel in the last quarter of 2022.
Cepsa increased its investment from 89 million in the first three months of 2022 to 114 million Euros this quarter, and concentrated almost one third of its investment on sustainable businesses due to the company’s strategy of being a multi-energy group. Betting on new business such as green hydrogen, biofuels and electric mobility in Spain and Portugal.