Repsol's net
income for the first quarter of 1995 was 32,777 million pesetas, 24.8% higher
than that for the same period in 1994. Operating income rose by 32.2% over the
previous year to 61,422 million pesetas.
Net cash-flow for the term
reached 67,078 million pesetas, 17.5% up on the first quarter of
1994.
These results were obtained in an environment characterized by
significant growth in consumption linked to production activity.
One of
the most important positive factors has been the very favourable environment for
the chemical activity, with better margins for all products, and higher crude
oil prices benefitting the exploration and production area.
In spite of
the aforementioned good performance, it is important to note that refining
margins fell in the first quarter to a record low, and were 47% below the
average for 1991 to 1994. Mild weather also persisted, with negative effects on
the consumption of energy for heating (heating gasoil and bottled
LPG).
First quarter highlights for Repsol by areas of activity may be
resumed as follows:-
In Exploration and Production, operating income rose by 117%
to 5,188 million pesetas as opposed to the 2,392 million pesetas obtained in
1994. The main cause of this was the higher price of crude oil, reaching an
average of $16.90 per barrel of Brent in contrast to $13.95 per barrel last
year.
Operating income from Refining and Marketing was
16,421 million pesetas this quarter against the 22,742 million pesetas
registered a year earlier. This decrease was due to the aforementioned weakness
in refining margins, which fell by 42% with respect to the first three months of
1994, and the decision to reduce the selling prices of gasoil, taken in the
second fortnight of February, followed by a further reduction in April,
1994.
Chemicals registered an operating income of 20,122
million pesetas as opposed to 2,164 million pesetas for the first quarter of
1994. The basic cause of this good performance lies in better margins for
plastics of all types, rubbers and intermediate products. These were 135% higher
than year-earlier figures when expressed in pesetas.
Operating income for
the gas activity rose by 19.7% with respect to the same period
of last year, reaching 19,983 million pesetas. This improvement basically arises
from the consolidation in books of ENAGAS from the second half of 1994, for
growth has been sharpest in the industrial market, with a 21% increase over the
first quarter of 1994. This may be explained partly by economic recovery and
partly by the capturing of new consumers. In spite of mild weather, the home
market grew by 15% over the previous year.
As far as
international activity is concerned, the commercialisation of
LPG has begun on almost all Portuguese markets, including the cities of Lisbon
and Oporto and in the South of France.
Overall
investments for the three-month period were 34,220 million
pesetas in comparison to 35,692 million pesetas in 1994. The Annual General
Shareholders' Meeting will take place on June 9th, 1995 at the Palacio Municipal
de Congresos and will be duly announced shortly. At this Meeting, information
will be given on the 1994 financial year and a total gross dividend of 140
pesetas per share will be proposed for approval. This represents a 21.7%
increase on the previous year's dividend.
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