Repsol's net income for the first half of 1995 rose by 25.1% over the 1994 level, to 62,163 million pesetas. Operating income for the period was 26.0% up, reaching 11,380 million pesetas, and cash flow was 124,888 million pesetas, showing an increase of 16.3%.

This good performance was achieved in spite of very narrow refining margins, which registered their lowest figures in the last decade, showing average margins 36% below those for the same term last year. In addition to this, pre-tax selling prices for fuels (gasolines and gasoils) were under the average level for European countries.

The fact that chemicals are currently in the upper segment of their cycle and the over 3% higher consumption of fuels, stimulated by the Spanish economy's continued growth, has also contributed to these results.

By activities, Repsol's most relevant figures for the half-year may be resumed as follows:

Operating income from Exploration and Production amounted to 9,859 million pesetas, a rise of 34.0% compared to year-earlier figures. This improvement was mainly due to higher average prices for crude oil over the period (17.5 dollars per barrel as opposed to 15.1 dollars in 1994). Production also rose slightly on the previous year and some of the company's assets in Gab�n were divested.

Refining and Marketing produced an operating income of 29,638 million pesetas, 38.6% less than in 1994. These results were influenced by the weak international refining margins we have already mentioned and a fall in prices on the home market, although there was strong sales growth for all products, varying from 4.8% for gasolines to 11% for gasoils.

Chemicals registered a first-half operating income of 41,337 million pesetas in contrast to a year-earlier 5,308 million pesetas, thus nearly multiplying the balance obtained for the same period in 1994 by eight. Better performance is the result of higher margins on plastics, base and intermediate products. Sales were also boosted by the progressive on-streaming of recently re-vamped capacity.

Operating income from gas rose by 24.7% to 32,828 million pesetas, mostly as a result of sharp growth in the natural gas sector.

Repsol invested 78,170 million pesetas over the first half of 1995, as opposed to the year-earlier 74,863 million pesetas. Of these, 39,454 million pesetas were in refining and marketing to link service stations. 19,924 million pesetas were spent in the gas activity to expand natural gas markets and develop new LPG commercial products.

In addition, we would like to mention our company's higher sales activity in Portugal during the first six months of the year, where Repsol has won important tenders held in recent months for setting up service stations. Our company's network has been considerably extended through the incorporation of several service stations in the city of Lisbon and on the motorways connecting it with Spain. A second MTBE plant also went on stream at the Tarragone refinery in June as part of the programme to improve gasoline specifications.

REPSOL SUMMARISED INCOME STATEMENT

REPSOL COMPARATIVE BALANCE SHEET

REPSOL SUMMARISED INCOME STATEMENT

(Million pesetas)

- NON AUDITED FIGURES -

_________________________________________
$ = 120.74 pesetas en 1995
$ = 131.11 pesetas en 1994

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REPSOL COMPARATIVE BALANCE SHEET

(Million pesetas)

- NON AUDITED FIGURES -

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