Repsol: posts huge loss on write-downs
(CercleFinance.com) - Repsol has posted a huge loss for the first half of 2020, hit by the collapse in oil prices, which has ravaged the valuation of its inventories.
The Spanish energy group reported a net loss of close to 2.5 billion euros over the first six months of the year as it set aside 1.1 billion euros to cover the negative valuation of its inventories.
The company also reformulated its forecasts for future crude and gas prices, along with the value of its upstream assets, prompting another write-down of 1.6 billion euros.
Following these results, Repsol tried to reassure investors about its financial position, saying that it has "ample liquidity" of 9.7 billion euros after four bond issues that totalled 3 billion euros.
It also said that it has managed to cut its net debt over the second quarter to less than 4 billion euros, around 500 million euros less than that at the end of the first quarter.
The market seems to like the tone, with the Madrid-listed shares up 1.2% after this report.
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