Spain's Repsol forecasts profits down despite Canada boost

GMT 06:47 2015 Thursday ,15 October

Arab Today, arab today Spain's Repsol forecasts profits down despite Canada boost

Spanish oil giant Repsol
Madrid - AFP

Spanish oil giant Repsol forecast Wednesday that its net profits would slump this year on low oil prices despite a boost in earnings following its acquisition of Canadian company Talisman.

Net profit is forecast at between 1.25 billion and 1.5 billion euros (up to $1.72 billion), "considering the current climate of low crude oil prices", the company said in a statement to market regulators.

That would be as much as 22 percent lower than the profits of 1.61 billion euros it reported for 2014.

The company said however that its key raw measure of earnings before interest, taxes, depreciation and amortization was set to strengthen this year to between 5.2 billion and 5.45 billion euros.

The global firm increased its production and oil-refining revenues this year by buying Canadian energy firm Talisman, which it integrated into Repsol in May.

Crude prices have fallen since last year but Repsol compensated by boosting its refining margin. That key measure of profitability expanded to $8.80 per barrel in the third quarter of 2015 from $3.90 a year earlier, Wednesday's statement said.

Repsol said it will release a five-year strategic plan on Thursday and will publish its full third-quarter results on November 12.

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