Energy Company Faces Tax Burden and Quarterly Profit Shifts
In the first quarter, a new government levy on large energy companies turned the sector’s financial picture red for the year. The levy, set at 1.2% of the previous year’s total sales, hit the energy group hard. The oil company reported a net loss of 297 million euros through March, contrasting with a 265 million euro swing in benefits from the same period last year. This adjustment highlights how policy changes can immediately affect earnings, especially for groups with substantial energy market exposure.
The company, which is controlled by Abu Dhabi’s Mubadala fund, explicitly attributes the losses to the added burden of the new tax. It also notes that this year’s tax liability is projected to reach 323 million euros, and it has criticized the tax design for its rigidity. The administration approved the tax framework that targets the entity’s total sales, a mechanism intended to capture the scale of activity across its operations.
Ibex Bank Pays 1.119 Million for Extraordinary State Tax
The leadership argues that the extraordinary tax on Spanish energy firms produced a meaningful hit in the first quarter under international financial reporting standards. According to Maarten Wetselaar, CEO of the energy group, this outcome signals weak policy design and a disproportionate effect on companies investing heavily in Spain’s energy future. Wetselaar noted that the environment remains uncertain, with energy markets and regulatory rules evolving rapidly.
Actual payment of the extraordinary tax during the quarter amounted to roughly 164 million euros, roughly half of the total tax demonstrated in the financial statements. The group reported a first-quarter tax contribution of 1,786 million euros, with 67% of that sum, or 1,192 million euros, paid in Spain.
Increased Profitability in Refineries
Stripping away extraordinary items, adjusted net profit reached 176 million euros through March, nearly tripling the previous year’s 58 million euros. Adjusted gross operating profit stood at 556 million, reflecting a softer quarter compared with last year. The company attributes part of this resilience to market conditions and the reduced price of natural gas used in power plants, even as oil prices declined by about 20% year over year and 8% versus the prior quarter.
In exploration and production, EBITDA adjustments show a 19% decline to 310 million euros, driven by lower oil prices and decreased production. The chemistry division also reported a softer performance, with EBITDA down by about 42% to 64 million euros, as demand contracted. Yet, the refineries segment delivered a contrasting narrative, showing rapid profitability gains during the period. Revenue from the energy segment, which includes refining, rose 48% year over year to 211 million euros in the January–March window.
Refining margins climbed sharply in the quarter, averaging about $11.10 per barrel, a notable rise from $2.20 in the first quarter of the previous year and above $8.70 per barrel in the last quarter of 2022. This margin expansion helped offset some of the pressure from weaker upstream performance and bolstered overall group earnings in an otherwise turbulent market environment.
Investment activity also picked up, rising from 89 million euros in the first three months of 2022 to 114 million euros in the current quarter. A significant portion of the investment targeted sustainable business lines as the group pursues a multi-energy strategy. The company signaled a stronger push into green hydrogen, biofuels, and electric mobility across Spain and Portugal as a core part of its growth plan.
Overall, the period underscored a dual narrative: while tax policy and some commodity prices created headwinds, the refineries and certain energy segments demonstrated resilience and growth potential. This dynamic reflects broader industry trends in Europe where tax design, energy transition efforts, and price volatility shape quarterly results and long-term strategy.
Sources for these figures and statements follow standard corporate reporting and market disclosures. For detailed financial accounting and policy commentary, see the company’s quarterly release and the accompanying notes to the financial statements. [Citation: Company filings and public disclosures]