Spanish oil major Repsol S.A. defied the gloom in the oil and gas industry caused by low energy prices by posting a 27.1-percent increase in its adjusted net profit for 2014.
Releasing its 2014 results Thursday, Repsol said it produced adjusted earnings of $1.93 billion (2013: $1.52 billion). Oil and gas production for the year came in at an average of 355,000 barrels of oil equivalent per day – 2.5-percent greater than the 346,000 boepd the firm produced in 2013. Production in the final quarter of the year was greater by 15.7-percent than that for 4Q 2013.
The firm said that the launch of the Kinteroni project in Peru and the Sapinhoá oilfield in Brazil meant that it has already started production from seven of the 10 key projects that were included in its 2012-to-2016 strategic plan.
Repsol said its results reflected “the strength of its business model and its resilience to adverse scenarios”, such as the sudden drop in the price of crude oil and interruptions to its production in Libya.
The company made 12 discoveries during 2014, including finds in Brazil, Russia and the US.
Repsol also said that its success in recovering the value of its stake in YPF – expropriated by the Argentine government in early 2012 – allowed it to make an offer to acquire Talisman Energy for $8.3 billion, doubling the size of Repsol’s exploration and production unit.
In Repsol’s downstream business, the firm saw a 111-percent increase in adjusted net income to $1.14 billion.