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Home News Spain’s Repsol to lose 1.2 bn euros in 2015 due to oil price plunge

Spain’s Repsol to lose 1.2 bn euros in 2015 due to oil price plunge

Published on 28/01/2016

Spain's oil giant Repsol has announced it has put aside an exceptional provision of 2.9 billion euros ($3.2 billion) due to a plunge in crude prices that will lead to a net 2015 loss of 1.2 billion euros.

The past few months have been trying for companies and countries which produce oil and other commodities, the prices of which have slumped as demand has slowed in China — the motor of global growth in recent years — casting a cloud over the global economic recovery.

“In the current environment of low crude oil and gas prices, the board of directors of Repsol has agreed… to apply extraordinary impairments totaling approximately 2.9 billion euros to its 2015 earnings,” the company said in a statement late Wednesday.

Repsol, which acquired Canada’s energy firm Talisman last year, added in its 2015 earnings preview that the group would register an annual net loss of 1.2 billion euros as a result of this exceptional charge.

It added that without the provision, the group would have made a net profit of 1.85 billion euros last year — an eight-percent rise from 2014.