Repsol back to pre-pandemic profit levels due to higher oil prices

Spanish energy group Repsol posted Thursday a profit for the first nine months of the year that was higher than what it was generating before the pandemic, as higher oil boosted its trading business

The company reported a net income of 1.94 billion euros ($2.25 billion) for the January to September period, a 32 percent increase over the same period in 2019 before the pandemic.

That compares to a loss of 2.58 billion euros during the first nine months of 2020.

“Our results have returned to pre-pandemic levels, driven by our efficient management and the implementation of our strategic plan,” Repsol chief executive Josu Jon Imaz said in a statement.

Energy prices have soared over the past year, pushing up inflation which threatens to weigh on the global economic recovery.

Like its rivals, Repsol had slumped into a huge loss in 2020 as the coronavirus pandemic slashed energy demand and prices.

After lockdowns began to spread towards the end of last year’s first quarter, oil prices dropped off a cliff, even briefly turning negative.

Prices have since rebounded sharply, with the benchmark Brent North Sea oil contract trading around $85 per barrel.

Gas and electricity prices have also seen massive gains in recent months, boosting income for energy majors but weighing on business costs and individuals’ spending power.

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