04/20/98
REPSOL, PREVIEW OF INCOME STATEMENT FOR FIRST QUARTER OF 1998
 

  • Repsol records its highest ever quarterly operating income.
  • Operating income for the first quarter of 1998 was 34.5% up on first quarter,1997.
  • Net income rose by 23.3% over year earlier figures, to more than 38 billion pesetas.
  • Cash-flow for the quarter was 95,495 million pesetas, in comparison to 80,472 million pesetas registered in 1997.
  • Income was higher in all areas of activity, except exploration and production, where low oil prices kept results down.
  • High success rate in exploration, with discoveries in Spain, Argentina, Egypt and Venezuela.
  • The Repsol-Gas Natural Group strengthened its position as top gas distributor in Latin America when Gas Natural Mexico won the concession to distribute natural gas in Monterrey, Mexico.

PREVIEW OF INCOME STATEMENT FOR THE FIRST QUARTER OF 1998

Repsol�s net income after tax for the first quarter of 1998 was 38,283 million pesetas, showing a 23.3% rise on the 31,037 million pesetas registered in the same period a year earlier. Operating income was 34.5% up, at 71,245 million pesetas. Cash-flow rose by 18.7%, to 95,495 million pesetas.

These figures were obtained exclusively on the company�s ordinary operations. There was no extraordinary income or capital gain from asset divestment during this quarter.

This higher income is the result of a better balance in the company�s fund-generating base, for it was achieved despite negative factors such as low crude oil prices (the lowest for the past ten years), and the economic crisis in Asia, which has particularly affected the derivative chemical business.

There was extraordinary growth in the gas activity during this first quarter, and a good performance by the refining and marketing area.

By areas of activity, these are the highlights for the quarter:

In Exploration and Production, operating income was 6,794 Million pesetas, in comparison to 12,130 million pesetas the year before. This drop was basically due to low crude oil prices, which were 37% below last year�s levels. Higher sales were not sufficient to compensate for this.

First quarter operating income from the Refining and Marketing area was 31,833 million pesetas, showing a rise of 39%. International margins were good, and there was a 20% rise in the distillation rate in Spain, where activity was greater in this area. Income was also boosted by activities in Latin America, especially in Peru, and the inclusion of Eg3 (Argentina) in Repsol�s refining and marketing activity. In marketing, sales were higher in Spain. The first six Repsol service stations with Supercor shops were opened, under an agreement between Repsol and Spain�s largest department stores, El Corte Ingl�s. 30 service stations will be built under the first phase of this agreement. A new image for Repsol service stations, designed by Sir Norman Foster, was also launched.

Operating income from Chemicals was 35.2% up on the first quarter of 1997, at 9,800 million pesetas. High base chemical margins on international markets and a rise in turnover were mainly responsible for this.

In Gas, quarterly operating income was 23,264 million pesetas. The end of the government�s LPG price freeze was the main factor here, although greater activity in Spain, where sales to the industrial and residential-commercial sectors were higher, and larger income from distributors in Latin America also contributed to this good performance. Repsol�s gas activities continued to expand in Latin America. Gas Natural Mexico won a concession to distribute natural gas in Monterrey, the second largest industrial centre in Mexico and a city with one of the highest natural gas consumptions in Latin America.

REPSOL SUMMARISED INCOME STATEMENT

(Million pesetas)

(Unaudited figures)

  FIRST QUARTER VARIATION %
  1997 1998  
Operating income 52,951 71,245 34.5
Financial results (3,143) (5,638) 79.3
Extraordinary items (1,615) (1,587) (1.7)
Equity on earnings of unconsolidated affiliates 69 79 14.4
Goodwill amortization (452) (1,850) 309.2
Income before income tax and minority interest(1) 47,810 62,249 30.2
Income tax (14,119) (18,708) 32.5
Net income before minority interest (2) 33,691 43,541 29.2
Minority interest (2,654) (5,258) 98.1
       
Net Income 31,037 38,283 23.3
       
Cash-flow after taxes 80,472 95,495 18.7

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(1) Before tax

(2) After tax

REPSOL OPERATING ACTIVITY: BREAK-DOWN BY ACTIVITIES

(Million pesetas)

(Unaudited figures)

  FIRST QUARTER VARIATION %
  1997 1998  
Exploration & production (1) 12,130 6,794 (44.0)
Refining & marketing (2) 22,906 31,833 39.0
Chemicals (3) 7,246 9,800 35.2
Gas and electricity (4) 10,937 23,264 112.7
Corporate & others (5) (268) (446) 66.4
       
TOTAL 52,951 71.245 34.5

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(1) Includes Repsol Exploraci�n, and Astra Exploraci�n from third quarter, 1996, onwards.

(2) Includes C.L.H., and refining and marketing activities of Repsol Petr�leo, Petronor and Repsol Comercial de Productos Petrol�feros. La Pampilla has been included since third quarter, 1996.

(3) Includes Repsol Petr�leo and Petronor base petrochemicals, and Repsol Qu�mica derivative petrochemicals.

(4) Includes Repsol Butano, Solgas and Repsol�s 45.3% stake in the Gas Natural Group. Since 1997, includes Astra power generation.

(5) Mainly includes Repsol, S.A. overhead costs.