Libyan Unrest Hits Repsol Profits

Spanish oil major Repsol has said that net income during the first nine months of 2013 was 1.41 billion euros compared with 1.706 billion euros in the same period of 2012. The decline is the result of production interruptions in Libya and narrower refining margins due to the weakness of the European market.

The Upstream unit (exploration and production), the biggest contributor to the group’s earnings, posted operating profit of 1.545 billion euros, despite being negatively affected by the interruptions in Libyan crude output.

During the year, Repsol announced new and significant finds including the discovery in block NC115 in Libya.

Repsol said growth was likely to be around 7 percent this year, down from a previous forecast for 10 percent but in line with a longer-term target for output to reach 500,000 barrels of oil equivalent (BOE) per day in 2016.

Chief Financial Officer, Miguel Martinez (pictured), said on an analyst call:

"When we had the second-quarter results presentation I was quite confident that the 10 percent increase was reachable, but with disruptions in Libya it's difficult to say.

"If things develop normally, I'd say 7 percent, basically in line with the long-term production goal."

(Sources: Repsol, Reuters)

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