cepsaSpain’s second largest oil company is making savings 116 million euro net loss Compared to the record profit of 982 million achieved in the same period last year through September. Some of the red numbers were motivated by a new tax on major energy companies approved by the Government (at a cost of $323 million for the group) hitting accounts of sales of assets and changes in the value of stocks in Abu Dhabi. company.
“Overall results for the first nine months of the year continue to reflect the impact of the extraordinary levy, which we consider to be ill-conceived; as well as the volatility in energy markets observed across Europe so far this year,” he explains Maarten Wetselaar, CEO of Cepsa.
An invitation to the Cepsa dialogue came after its major rival Repsol warned that the new Executive could cripple investment in Spain if it maintained the ‘tax’ as PSOE and Sumar had agreed, and following a warning from the AOP employers’ association, the oil companies of which Cepsa is a member were reluctant to continue the tax. He said that “it puts 16 billion 500 million investments in energy transformation at risk.”
Although he complained about the impact of the new sales tax on major energy companies and took the issue to court. Cepsa reached out to the new government of Pedro Sánchez. “We look forward to working with the new Spanish Government to ensure that the fiscal and regulatory framework supports the sector and creates a competitive environment for the energy transition, encouraging investment and enabling the development of Europe’s largest green hydrogen project in Spain,” he said. The CEO referred to the renewable hydrogen ‘macro project’ that the company is developing in Andalusia with an investment of 5,000 million.
The amount paid by Cepsa for the tax deducted at a rate of 1.2 percent in 2022 from the sales of companies with annual revenues exceeding 1,000 million in the sector is now 323 million euros, after paying the 158 million euros corresponding to your second payment in September. The new tax is (or was) temporary and the Administration approved it for a period of two years, but the coalition agreement between PSOE and Sumar plans for this tax to be extended.
Cepsa, on behalf of the Abu Dhabi sovereign fund (Mubadala) and the Carlyle investment fund, emphasized that the tax contribution until September this year was 3 billion 358 million euros in taxes in Spain, 2 billion 46 million of which was covered by the company and 1 billion 312 million was collected. On behalf of the Spanish public treasury
Improvement in quarter
Despite the losses accumulated so far this year, Cepsa has already started to make losses. Notice the recovery in your accounts in the third quarter of the year. It accumulated red figures of 393 million euros in the first half of the year; After making quarterly profits of 278 million euros between July and September, these figures are already starting to improve; It was almost double last year, thanks to the increase in prices. improving margins of oil production and refineries.
The oil company underlines that adjusted net profit, without taking into account the impact of extraordinary events and specifically measuring the performance of businesses, reached 252 million euros in the January-September period after the sale of Abu Dhabi assets. A 53% decrease compared to the 534 million recorded in the same period in 2022. The adjusted gross operating result (favda) amounted to 1.165 million through September. This figure was 1.165 million compared to 2.492 million in the same period the previous year due to reduced volumes in production through September. Disposal of assets in the Middle East.