Repsol's share price fell by over 2% on Thursday morning on the Madrid Stock Exchange, after reporting a lower-than-expected refining margin for the second quarter.
Last night, the Spanish energy group released its main business indicators ahead of the publication of its quarterly results on July 24.
According to these figures, refining margins were $6.3 per barrel in the April-June period, compared with $11.4 in the first quarter.
By way of comparison, the consensus was for refining margins of around $8.5.
We believe that this milestone suggests that consensus forecasts for the quarter are over-optimistic, particularly in refining, and anticipate a downward revision of market estimates following this publication", reacted RBC analysts.
Capacity utilization was also down, at 87.5% versus 89.3% for the first three months of the year, while hydrocarbon production remained broadly stable, at 589.000 barrels of oil equivalent per day.
This publication, which was poorly received by the market, comes on the heels of the disappointments already caused by the less than reassuring business reports from Shell, ExxonMobil and bp, promising a difficult earnings season for the oil sector.
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Repsol S.A. is one of the largest oil and gas groups in Spain. The activity is organized into four sectors:
- refining and distribution (No. 1 in Spain): 42.1 million tons of crude oil refined in 2022 and 25.5 million tons of oil products sold (kerosene, gasoline, fuel oil, gas liquefied petroleum gas, etc.). At the end of 2022, the group operated 6 refineries located in Spain (5) and Peru and a network of 4,651 service stations located in Spain (3,304), Peru (567), Portugal (515) and Mexico (265). Repsol S.A. also sells lubricants, aviation fuels, bitumen and specialty products (7,261 Kt sold in 2022), liquefied petroleum gas (1,207 Kt sold) and petrochemicals (2.5 Mt of products sold);
- production of electricity and distribution of natural gas: 8,734 Gwh of electricity generated from renewables energy and 1,650 Gwh of gas sold in 2022;
- liquefaction, transportation and regasification of natural gas;
- exploration and production of oil and natural gas: 550,000 barrels of hydrocarbons produced per day in 2022.
Net sales are distributed geographically as follows: Spain (57.9%), Peru (7.2%), the United States (5.7%), Portugal (4.6%), and other (24.6%).