Repsol obtained an income after tax of 96,803 million pesetas in 1994, showing a 20.8% rise on results for 1993.

Operating income was 176,917 million pesetas, 12.8% up on 1993, and cash flow after tax was 15.2% higher than the previous year, reaching 221,664 million pesetas in comparison to 192,443 million pesetas.

The circumstances surrounding this performance were not easy, for consumption was low, causing gasoline sales to fall slightly on the domestic market, and winter temperatures were mild, so heating oil sales also dropped. Lower international refining margins also had a negative effect, and fell by 21% over 1994 in relation to 1993, worsening noticeably in the second half of the year. Sales margins, particularly on automotive gasoil at service stations, narrowed, too, by 13% over the year.

In spite of these adverse conditions, profits went up thanks to improvement in chemicals; higher income from the gas activity; good returns on investment and significant cost cutting in all areas of business.

Taken by areas, the following points are worthy of interest:-

Operating income in Exploration and Production amounted to 17,073 million pesetas, 12.1% less than in 1993. This fall in results was basically due to lower crude oil prices (the price of Brent fell from $16.97 per barrel in 1993 to $15.82 per barrel in 1994). In fact, production in 1994 rose to 213,000 barrels per day (bpd) from the year-earlier 205,000 barrels per day (bpd), (that is, 10.67 million tonnes of oil equivalent and 10.28 Mtoe, respectively). Landmarks for the year were the company 's higher stake in the Gulf of Suez and the signing of a contract to develop three fields in Libya, where Repsol acts as operator. These will go into production from 1997 onwards.

Refining and Marketing reported an operating income of 89,367 million pesetas, 13.5% down on 1993. As we have already mentioned, this decrease is the effect of lower margins, aggravated by unfavourable weather conditions. However, other aspects were positive: for example, overall sales of fuels and heating oils on the domestic market grew by 4.8%.

Chemicals registered an operating income of 23,201 million pesetas, which compares most favourably with the losses of 2,076 million pesetas incurred in 1993. The reason for this improvement lies in higher margins, especially for polypropylene and polyproylene, where they had practically doubled by the end of the year. However, it is worth noting that a significant part of these better results may be explained by rationalization and cost-reduction efforts and increased competitivity following the depreciation of the peseta.

As for gas, operating income for the activity rose by 23.3% to 47,688 million pesetas. Here, improvement was due to increased income from the natural gas sector, which is in full expansion and will continue so for the next few years, and the consolidation in accounts of ENAGAS for the second half. Better performance in LPG was essentially the result of cost-cutting measures and efforts to capture new markets, showing an increase in customers for the "Tailor-made Plan" and piped gas.

As far as international activity is concerned, Repsol has increased its sales on the French and Portuguese markets. Its presence has developed considerably in both these countries, especially in LPG and service stations, over 1994.

Overall investments for last year amounted to 190,852 million pesetas, and were 6.7% higher than the previous year. 80,542 million pesetas were dedicated to refining and marketing, where the main projects were aimed at increasing de-sulphurisation capacity at refineries and - in marketing - the greater part was spent on acquiring and building service stations. Outlay in gas was 63,624 million pesetas, of which 23,193 million pesetas went to pay for Repsol's share of the Enagas transaction, and 22,213 million were dedicated to finance investments in transport grids and residential and commercial distribution on Spanish territory.

Finally, on December 21st 1994, the Repsol Board of Directors approved payment of a gross interim dividend of 58 pesetas per share against the 1994 financial year. This interim dividend is 13.7% more than last year's, and was payable from January 5th, 1995. The final dividend will be passed at the General Shareholders' Meeting to be held on June 2nd, next.

REPSOL SUMMARISED INCOME STATEMENTS

REPSOL COMPARATIVE BALANCE SHEET

REPSOL SUMMARISED INCOME STATEMENTS

(Million pesetas)

- NON-AUDITED FIGURES -

$ = 131.66 pesetas in 1994
$ = 143.02 pesetas in 1993

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REPSOL COMPARATIVE BALANCE SHEET

(Million pesetas)

- NON-AUDITED FIGURES -

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