Repsol Net Income More Than Halved in 2011
by Jon Mainwaring
Wednesday, February 29, 2012
Spanish oil major Repsol reported Wednesday a decline of more than half in its net income for 2011. The company said its earnings were affected by external factors such as the armed conflict in Libya and the strikes and suspension of the Petróleo Plus program in Argentina.
Repsol reported a net income of $3.15 billion (EUR 2.2 billion) for last year, representing a 53.3-percent decline compared with the firm's 2010 income. Along with the negative effect of the problems in Libya and Argentina, Repsol said that earnings in 2011 appeared worse than the previous year because 2010's figure included a one-time gain from the agreement that Repsol made with China's Sinopec in Brazil.
Oil and gas production for 2011 was 298,800 barrels of oil equivalent per day, which was 13.2 percent less than 2010. Repsol's Argentine YPF subsidiary saw production fall 8.5 percent to 495,100 boepd.
On the positive side, Repsol said that "unprecedented" exploration success resulted in a record reserve replacement ratio of 131 percent for 2011. The firm's new discoveries included major finds offshore Brazil and non-conventional discoveries in Vaca Muerta in Argentina.
The company also increased its geographical diversification with the acquisition of stakes in Colombia, Alaska, Ireland, Norway, Portugal, the US and Russia.
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