REPSOL, SPAIN’S biggest oil company, said fourth-quarter profit fell more than analysts predicted on lower output from Libya and weaker refining.
Net income, adjusted to exclude inventories and one-time items, slid 29 per cent from a year earlier to €355 million, the company said. The mean of 20 analyst estimates was for profit of €380.6 million.
Repsol is bolstering exploration to stem declines in production, which slipped 14 per cent in the fourth quarter from a year earlier. The company is investing in Brazil’s offshore Santos Basin and has sold off part of its interest in its YPF unit to reduce dependence on mature fields in Argentina.
“The fundamentals of the company remain solid,” said chief financial officer Miguel Martinez. “We expect this year to be better than 2011.”
Shares fell 4.8 per cent to €19.57, the lowest since October 4th. Repsol is down 20 per cent in the past year.
Output in Libya from wells where Repsol has a stake is now at a gross level of about 300,000 barrels of oil equivalent a day, with Repsol’s share at about 50,000 barrels, the company said. – (Bloomberg)
