Cepsa Spain, the country’s second-largest oil company, reported a net loss of 116 million euros through September, a contrast to the record 982 million euro profit recorded in the same period last year. The downturn was driven in part by a new government levy on major energy groups, which weighed on asset sales, inventory revaluations in Abu Dhabi, and other one-off items for the group, totaling a sizable impact on the quarterly numbers.
The company’s leadership notes that the first nine months reflect the effects of this extraordinary levy alongside the volatility seen in European energy markets this year, which has complicated margins and earnings. Maarten Wetselaar, CEO of Cepsa, commented on the ongoing impact and the broader energy market dynamics that have shaped results to date.
Industry peers, including Repsol, have warned that the new fiscal stance could hinder investment in Spain if it remains in effect, a concern echoed by the AOP employers’ association. The potential effect on capital expenditure has been highlighted as a risk to energy transformation plans and related investments, which would have long-term implications for the sector.
Cepsa has engaged with the new Spanish government to ensure the fiscal and regulatory framework supports a competitive environment that propels energy transition initiatives. The company highlighted its commitment to pursuing a major renewable hydrogen project in Andalusia, valued at around 5,000 million euros, as a cornerstone of its green strategy and regional development plans.
The tax levy, applied at a rate of 1.2 percent in 2022 on sales by companies with annual revenue above 1,000 million euros in the sector, has accrued to 323 million euros as of September after the second payment was settled. The levy was designed as a temporary measure for two years, though political agreements between ruling parties signal possible extension, a development that could shape future fiscal policy affecting the sector.
Within the broader context, Cepsa, on behalf of its joint investors including the Abu Dhabi sovereign fund Mubadala and the Carlyle Group, noted that taxes paid in Spain through September reached 3.358 billion euros, of which the company directly accounted for 2.046 billion and the remainder supported public revenue. This tax contribution underscores the company’s role within the domestic economy while it advances long-term energy programs.
Quarterly improvement
Despite recurring losses earlier in the year, a notable improvement emerged in the third quarter. After posting a 393 million euro loss in the first half, the company reported a 278 million euro quarterly profit in July through September, signaling a positive shift driven by stronger pricing and higher margins in oil production and refining. The momentum suggests a narrowing gap versus the prior year as market conditions stabilize and refining operations benefit from favorable fundamentals.
Adjusted net profit, which excludes the impact of extraordinary items and measures performance by core segments, reached 252 million euros for the January-to-September period following the asset disposals in Abu Dhabi. This figure marks a substantial decline from 534 million euros in the prior year period, reflecting lower volumes and the timing effects of asset transactions. The adjusted gross operating result remained meaningful, reflecting ongoing operating efficiency despite softer production volumes through September due to strategic asset management in the Middle East.