European oil frms tackle uncertainty with fexibility

摘要

Uncertainty over the lingering demand efects of Covid-19 and the accelerating energy transition is prompting some of Europe’s leading oil companies to maintain a degree of fexibility in their fnancial strategies. Recovering oil prices resulted in Spain’s Repsol, Italy’s Eni and Austria’s OMV swinging to frst-quarter profts and stronger upstream results. But low fuel demand resulting from continuing travel restrictions because of the pandemic pressured downstream earnings (see table). Firms expect refning margins to recover this year, but renewed lockdown measures in some European countries alongside new Covid-19 variants in some parts of the world are creating an uncertain outlook in a sector already facing long-term structural overcapacity.