Repsol Takes 2.9 Bln Euro Hit on Weak Oil Price
MADRID, Jan 27 (Reuters) - Spain's Repsol announced on Wednesday a 2.9 billion euro ($3.2 billion) writedown on its 2015 results due to weak oil and gas prices, pushing it into a loss for the year.
Europe's fifth-biggest oil company said it would book a loss of 1.2 billion euros due to the plunge in energy prices. It also said it would widen and speed up its plan to sell non-strategic assets and deepen investment cuts.
The plunge in the oil price to a 12-year low of $30 a barrel has forced the company to update a strategy unveiled in October based on an adverse scenario of $50 a barrel.
"Repsol has had to deepen plans to generate cost savings, improve efficiencies, sell non-strategic investments and cut investment in the context of intense ongoing falls in oil and gas prices," the company said in a statement.
Analysts had forecast falling energy prices would squeeze Repsol's cash flow by more than three quarters to below 2.5 billion euros, inevitably forcing a revamp of its October strategy.
Over the last three months Repsol's share price has fallen by almost 21 percent to 9 euros, against a 13.5 percent fall in the STOXX Europe 600 Oil and Gas index over the same period.
The company is due to meet credit rating agencies to review its financial situation shortly after it presents full-year earnings on Feb. 25.
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