The company warns that regulatory pressure in Spain “affected its business in the second quarter and may continue to affect it in the future”
Cepsa posted a net profit of 841 million euros in the first half of the year, an increase of 149% compared to the same period last year, driven by the rise in the price of crude oil.
The company’s adjusted net profit, which specifically measures business performance, was €463 million in the January-June period, compared to €183 million in the same period in 2021, the company reported.
The group stressed that these benefits, “in a context of continued volatility in global energy markets, high crude oil prices and a situation of regulatory uncertainty in Spain”, allow to offset the net losses recorded during the pandemic. , which in the first half of 2020 amounted to 842 million euros.
Cepsa’s adjusted gross operating income (Ebitda) as at June amounted to 1,742 million euros, doubling the 842 million euros for the same period of the previous year. Of this figure, 55% was generated outside of Spain and 45% in the country.
This improvement was mainly due to the increase in the results of the Exploration and Production (Upstream) activities and the increase in refining margins due to the restrictions on the supply of products from Russia, as well as the reduction in refining capacity in Europe in the past ten years.
Notably, crude oil prices in the second quarter continued their upward spiral, accelerating since Russia’s invasion of Ukraine, averaging $113.8 a barrel over the period, compared to $68.8 a barrel over the same period. from last year.
Meanwhile, refining margins rose in the second quarter, bringing the oil company’s average margin for the period to $19.1/barrel, compared to $4.5/barrel in the same period last year.
On the other hand, the cash flow before working capital of the multi-energy company amounted to 826 million euros, compared to 763 million euros in the first half of 2021, although it was impacted by the increase in tax payments, especially in Exploration and Production. Similarly, cash flow after working capital amounted to EUR 434 million, impacted by the increase in raw material prices.
Likewise, the company continued its deleveraging process during this period, with a net debt-to-EBITDA ratio of 1.1 times, thanks to the increase in EBITDA. In this way, Cepsa maintains a solid liquidity position of 3,909 million euros, covering 4.2 years of future debt.
Cepsa’s CEO, Maarten Wetselaar, emphasized that the group has managed to present “solid” financial results for the semester “in a context of volatility in the international energy sector and an uncertain regulatory environment”.
In the specific case of Spain, he warned that regulatory pressure “affected his business in the second quarter and may have an impact in the future.”
However, he pointed out that these results will enable “investment financing” of up to 8,000 million euros that the group has committed to in its 2030 strategy “to advance the energy transition and fight against climate change” and “be a leader.” in green hydrogen, biofuels and sustainable mobility in Spain and Portugal».
“These investments represent decisive steps to decarbonise our business and that of our customers, thereby strengthening the European energy transition agenda. This objective is more important today than ever, as it will facilitate not only cleaner and cheaper energy in the future, but also Europe’s energy independence guaranteeing its supply. Governments and businesses must work together to facilitate and accelerate this goal,” he added.
In this sense, Cepsa indicated that it contributed 2,232 million euros in taxes in Spain during this period, compared to 1,685 million euros in the first half of 2021, of which 1,153 million was paid and 1,079 million was collected on behalf of the Spanish Treasury – mainly in related to special taxes on hydrocarbons.
In addition, since the month of April, the company has been offering special discounts on fuel, up to 50 cents per litre, of which 20 cents correspond to the bonus approved by the Spanish government and up to 30 cents extra in connection with loyalty programs offered by Cepsa, allowing consumers can save up to 25 euros on an average tank of 50 liters.
The group added that these discounts, which will be in effect until the end of the year, had a negative impact on the gas station business, resulting in a loss of profit in the second quarter.
Source: La Verdad
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