Registration results show Repsol delivering 2,539 million euros in the first half of 2022, a figure that doubles the year’s result and surpasses the 2,499 million euros recorded for the entire 2021. The company presented these figures to the National Securities Market Commission (CNMV) this Thursday, highlighting that the half-year performance was driven by sustained demand, a tight supply environment, and favorable energy pricing conditions that benefited refiners and traders alike.
Repsol notes that the first half partially offsets the red figures from 2019 and 2020, when the company was burdened by asset write-downs and the economic shock from the coronavirus pandemic, which sharply reduced demand and prices. The period under review is marked by a resilience in the business model, yet also by ongoing regulatory and market pressures that influenced profitability across the European energy sector.
A highlight of the semester was a 1,844 million euro provision associated with certain impairment considerations, a reminder of the volatile macro backdrop. The management pointed to Turkey and broader European regulatory dynamics as factors shaping the environment—policies that the industry contends could affect long-term profitability and the competitiveness of refining assets. This includes discussions around the phase-out of combustion-engine vehicles and the potential impact on refinery economics, which feature prominently in the company’s impairment assessments.
Although there has been public chatter about new government taxes on extraordinary profits, the results do not explicitly mention any such levy. The governing coalition, consisting of PSOE and United We Can, has signaled plans to present a package to Congress, a development that could influence investor sentiment and future planning for energy majors like Repsol. [Source note: CNMV filing and subsequent government announcements attributed to parliamentary briefings.]
strategic reserve
Half of the net result stems from the carrying value of inventories tied to Spain’s strategic reserve, as described by the company. Overall, 1,206 million euros were booked in the period, nearly three times the first six months of the prior year, driven by higher prices for oil, gas, and derivatives amid geopolitical tensions surrounding the Ukraine conflict. During the half, Brent Crude averaged about $107.9 per barrel, a 66% rise versus 2021, while Henry Hub gas averaged $6.1 per MMBtu, up 118% year-on-year. Market watchers note that these price dynamics can materially influence the valuation of strategic reserves and related results. [Contextual figures drawn from market data and company disclosures.]
The adjusted net income soared, tripling from the previous year to 3,177 million euros, compared with about 1,000 million (959 million) euros in the first half of 2021. The company highlights strong performance in the Industrial segment, including chemicals and refineries, which reached 1,393 million euros as prices rose globally and supply disruptions persisted after the Ukraine conflict. In the prior year, this segment posted far lower results, underscoring the impact of macro shocks on refining and chemical margin dynamics. [Market context and segment notes drawn from the CNMV filing.]
The other half of the adjusted net income, 56 percent, came from the international business, particularly the Exploration and Production area, which delivered 1,678 million euros versus 959 million a year ago. Conversely, Commercial and Renewable Energy concluded the semester with 215 million euros, below the level achieved in the same period of 2021. In response to volatility, Repsol did note strategic savings for customers, including a 20-cent-per-liter discount implemented during the half-year to support affordability in a high-price environment. [Corporate disclosures and strategic actions summarized from the half-year report.]
Net debt stood at 5,031 million euros at the end of June, down 869 million from the previous quarter, while liquidity reached 9,380 million euros, enough to cover about 3.9 times short-term maturities. This liquidity position provides the company with resilience to navigate ongoing market fluctuations and regulatory developments as the energy landscape evolves in Europe and North America. [Balance sheet highlights from the financial statement.]