Repsol reports production increases due to acquisition, ramp-ups

Spain’s Repsol SA reported adjusted net income in the second quarter of €345 million compared with €312 million in the same quarter in 2015. Allowing for inventory and nonrecurring income, net income was €205 million vs. €292 million.

For this year’s first half, the company reported adjusted net income of €917 million compared with €1.24 billion a year ago. Net income for the first half was €639 million compared with €1.053 billion in 2015. In the first half, the company set aside €346 million to cover workforce restructuring.

Second-quarter production averaged 697,000 boe/d, some 33% higher than the 525,000 boe/d a year earlier. Liquids production in the second quarter accounted for 246,000 b/d, up from 203,000 b/d a year earlier. Natural gas production totaled 2.53 bcfd vs. 1.81 bcfd a year earlier.

Production in the first half averaged 705,500 boe/d, a 60% increase over the 440,000 boe/d a year earlier. Much of the production increase stemmed from incorporation of assets acquired in the Talisman Energy Inc. purchase (OGJ Online, Dec. 16, 2014; Feb. 19, 2015).

Other factors were ramp-ups of Perla natural gas field in the Cardon IV SA joint venture area offshore Venezuela and Sapinhoa field offshore Brazil, contributions from Gudrun field offshore Norway, and higher production in Peru (OGJ Online, Dec. 11, 2015; July 6, 2015; Nov. 21, 2014).

The increases were partially offset by maintenance in Trinidad and Tobago, cessation of production at Varg field offshore Norway, and lower activity in the US Midcontinent.

North American production accounted for 186,600 boe/d in the first half.

Compared with first-half 2015, Repsol said the average Brent price declined 31%, West Texas Intermediate 25%, and Henry Hub 28%.

Downstream, Repsol has completed its planned maintenance program for 2016 in Spain following maintenance shutdowns during the first half at facilities in Cartagena and Tarragona. The company processed 20 million tons of crude in the first half vs. 21 million tons a year earlier.

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