Repsol 4Q Net Profit Falls on Impairments, U.S. Tax Reform -- Update
By Marc Bisbal Arias
Repsol SA (REP.MC) said Wednesday that its fourth-quarter net profit fell year-on-year, citing impairments of assets in Venezuela and the impact of the U.S. tax reform.
Net profit was 538 million euros ($658.2 million) compared with EUR616 million the year-earlier period. Earnings before interest, taxes, depreciation and amortization rose to EUR2.01 billion from EUR1.67 billion, Repsol said.
The company said that it will propose raising its a dividend for 2017 to EUR0.9 a share, from EUR0.8 a share, as well as a full buyback on its scrip dividend.
Adjusted net profit was EUR703 million, above consensus expectations of EUR560 million, according to a survey provided by the company.
Repsol said that adjusted net profit from its exploration-and-production business increased year-on-year due to higher oil and natural-gas prices, resumption of production in Libya, and lower operating costs. Its refining, marketing and distribution services faced a more challenging environment due to higher costs and increased competition, Repsol said.
Earnings before interest, taxes, depreciation and amortization is expected to be close to EUR7 billion in 2018 at current cost of supply.
The Spanish oil-and-gas company said that at the end of 2017, net debt stood at EUR6.27 billion compared with EUR8.14 billion a year earlier.
Write to Marc Bisbal Arias at email@example.com
(END) Dow Jones Newswires
February 28, 2018 10:12 ET (15:12 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.