Repsol: posts first-quarter loss as oil prices collapse

(CercleFinance.com) - Spanish oil major Repsol reported a first-quarter net loss of 487 million euros after writing down the value of its inventories.


The collapse of oil and gas prices has impacted the valuation of the company's inventories to an "extraordinary degree," the group said, prompting a charge of 790 million euros over the quarter.

On an adjusted basis, Repsol made a net income of 447 million euros, still down 27.7% compared to the 618 million euros recorded for the first quarter of 2019.

In its statement, Repsol pointed out a context of "exceptional complexity," marked by the fall in oil and gas prices, and a drastic decrease in demand triggered by Covid-19.

The average price of Brent and WTI crude oils dropped by 21% and 17%, respectively compared to the first three months, it said.

Despite the adverse context, the Spanish group is maintaining its payout to shareholders of 1 euro per share for 2020.

Repsol also confimed its commitment to become a zero net emission company by 2050.

Its shares - which have dropped by 41% year-to-date - were up 7.8% on Tuesday morning.

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