Repsol feels heat after first-half write-downs

摘要

SPAIN'S Respol reported a big net loss of €2.484 billion ($2.9 billion) in the first half of the year, down from €1.13 billion in the first six months of 2019, on large writedowns due to a lower outlook for oil and gas prices in the years ahead. The company said late last week that the fall in commodity prices resulted in a negative impact of €1.09 billion on its inventories in the first six months of the year. Repsol has also adjusted its price curves, which has affected the book value of its upstream assets and is reflected in a special item of €1.59 billion. Adjusted first-half net income was €189 million, down from €1.12 billion. Repsol has implemented a so-called resilience plan that includes reductions in operating costs of more than €450 million and in investments of more than €1.1 billion, as well as "optimisations" of working capital of nearly €800 million compared with its budget at the start of the year. Chief executive Josu Jon Imaz said: "We are fulfilling the objectives of our resilience plan, ensuring the robustness of our balance sheet, and reaffirming our commitment to lead the energy transition and reach net zero emissions in 2050."