Snow record. The energy group posted earnings of 841 million euros between January and June, nearly triple the 338 million euros recorded in the first half of 2021 and just short of the 842 million euros posted in the same period a year ago. This half-year figure surpasses the company’s entire 2021 profit of 661 million euros, driven by higher crude prices and stronger refinery margins. In the first quarter, the group earned 265 million euros; between April and June, profits jumped to 576 million euros.
The CEO, Maarten Wetselaar, described these results as robust given volatility in the global energy market and regulatory ambiguity. He noted that editorial pressure from Spain weighed on its operations in the second quarter. He also pointed to a government-backed fuel discount that widened by another 10 cents after the government’s 20-cent reduction, a move that did not translate into added profits at the retail level.
He cautioned that the measure could continue to affect performance going forward, referencing a 1.2% energy sector sales tax presented to the Spanish Congress by coalition partners during the week. The company projected a tax contribution of 2,232 million euros in the first six months of the year, up from 1,685 million in the same period of 2021. Of this, 1,153 million euros had been settled, with 1,079 million euros collected on behalf of the Spanish Treasury, largely tied to carbon and hydrocarbon-related levies.
Margins in the refining segment expanded dramatically in the second quarter compared with the prior quarter, lifting overall profitability. The group reported a profit per barrel of 2.3 dollars in January–March, rising to 19.1 dollars per barrel in the year’s second half. Year-on-year, the growth was less pronounced, as the second quarter of 2021 saw a barrel price of 4.5 dollars.
Management framed these gains as a result of tighter supply conditions and sanctions on Russia that constrained European refining capacity in recent years. They underscored this combination as the main driver behind the upturn in the energy division’s performance, which includes refining, renewables, and downstream activities. The adjusted gross operating profit (CCS EBITDA) reached 620 million euros in the second quarter, up from 190 million euros in the second quarter of 2021 and 143 million euros in the first quarter of 2022.
Revenue from commercial sales rose 8% versus the first quarter of 2022, supported by recovering fuel demand in post-pandemic Spain and government-supported efforts to lower retail prices. Nevertheless, the discount on fuel partly offset profitability in the retail network, without the company disclosing exact station-level figures. The commercial segment is considered part of the energy business and is balanced by stronger refinery margins in aggregate.
On the exploration and production front, the CCS EBITDA stood at 438 million euros, compared with 217 million in the second quarter of 2021 and 384 million in the first quarter of 2022. The uptick came alongside higher oil prices, which rose 65% versus the prior-year quarter and 12% versus the preceding quarter. Despite improved earnings, cash flow generation in this segment remained modest due to what management called an exceptionally high tax environment associated with a high oil-price scenario.
The chemical segment also saw growth, reporting CCS EBITDA of 106 million euros, down slightly from 132 million in the second quarter of 2021 but above the 110 million seen in the first quarter of 2022. Demand remained solid across product lines used in household applications and personal care, helping to anchor the segment’s profitability even as margins fluctuated across markets.