Spanish oil giant’s profits surge

11 November 2004

MADRID- Repsol, the leading Spanish oil company, reported a 40.2 percent surge in third quarter net profit to EUR 621 million (USD 799m) from the same period a year earlier.

The result beat forecasts of 569-595 million as positive factors such as higher refining margins and crude prices outweighed a higher tax rate and the weaker dollar.

In a statement, Repsol said operating revenue rose to EUR 1.2 bn in the third quarter from 933 million a year earlier, while underlying profit as measured by earnings before interest, taxation, depreciation and other factors rose to EUR 1.86 bn euros from 1.53 bn.

In the nine months to 30 September, net profit grew to EUR 1.69 bn from 1.60 bn on operating revenue of 3.32 bn, up from 3.00 bn.

Shares in Repsol were higher in moderate morning trade, underpinned by expectations that analysts will raise their full-year forecasts after the company’s better-than-expected third quarter performance, dealers said.

Repsol was up EUR 0.20 at an midday high of 17.45 on a generally weaker IBEX-35 market.

An analyst with a leading Spanish bank said:  “The company is continuing its diversification away from its Argentine-based production, with Iran and Venezuela gaining importance, which investors should like.”
 
[Copyright EFE with Expatica]

Subject: Spanish news