- Repsol (OTCQX:REPYY +5.9%) reports Q2 adjusted net income fell 9% Y/Y to €497M from €549M amid a weak oil price environment but topped analyst consensus of €478M, and trims full-year core EBITDA guidance to €7.8B from a previous €8B.
- Repsol's Q2 net profit fell 44% Y/Y to €525M ($586M) from €936M a year earlier when it reported a capital gain on the sale of its stake in Naturgy Energy.
- But the Spanish energy company proposed buying and canceling 5% of its outstanding shares, helping send its stock higher.
- Repsol's refining margin fell 34% Q/Q in the quarter to $3.50/bbl amid weaker crude oil prices, and CEO Josu Jon Imaz says the company expected the margin to improve later this year but that he now calculates it could squeeze $6 out of each barrel, compared with a previous estimate of $7.60.
- Imaz says Repsol received 45% of the amount it was owed by Venezuela in H1 2019 under an oil-for-debt deal, adding that the company has reduced its financial exposure to Venezuela to $447M at the end of Q2 vs. $522M at year-end 2018.