Spanish multinational, Repsol, said it was able to obtain net income of €4.251 billion in 2022, of which close to 64% came from its international business (outside of Spain). However, the combined profits recorded in 2021 and 2022 (€6.75 billion) have not yet made it possible to offset the losses in 2019 and 2020 (€7.105 billion), Repsol said.
The company described 2022 as a year marked by uncertainty, volatility, and complex market dynamics due to the invasion of Ukraine.
It said the international economic situation has led to a rise in the price of raw materials, and security of energy supply has become one of the main priorities in Europe. The positive performance over the year in this environment, it said, was due to its integrated business model and 2021-2025 Strategic Plan to step up its energy transition. Repsol said that, at the same time, it drove forward its transformation, consolidating its multi-energy profile. This includes the sale of a 25% stake in its upstream unit to EIG and the acquisition of renewables company, Asterion Energy. Repsol plans to achieve net zero emission by 2050.
“The war and the consequent sanctions imposed on Russia by the European Union had a direct impact on the continent’s energy markets which are highly dependent on Russian hydrocarbons,” Repsol said.
As such, Repsol increased its inventories by more than €2 billion to guarantee supply to the Spanish domestic market and the operation of its refineries. It had also earmarked more than €500 million for contribution to fuel discounts at its service stations in Spain during last year.
Repsol is a multinational energy and petrochemical company based in Madrid; and is involved in worldwide upstream and downstream activities.
Repsol is the operator of the Kanuku license offshore Guyana with a 37.5% working interest. It is partnered with Tullow Oil (37.5%) and TOQAP (25%). The partners recently completed drilling at the Beebie-Potaro exploration well. While they encountered good quality reservoirs in the primary and secondary targets, both targets were water-bearing.