Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Repsol Writes Down Assets As COVID-19 Sours Outlook

Spanish oil and gas firm Repsol posted a quarterly net loss and wrote down $1.5 billion in assets on Thursday as it revised down unusually high expectations for oil and gas prices over the next 30 years.

The demand-sapping COVID-19 crisis has piled pressure on a sector already battered by oil prices dragged down by tension between producing countries over how to regulate supply and a broad drive to shift to low-carbon energy sources.

BP, Shell and Eni have all written down the value of assets on their balance sheets recently.

Repsol said it now expected Brent crude oil prices to average $59.6 per barrel between 2020 and 2050. It had previously forecast Brent crude to reach $87 per barrel by 2035, a higher forecast than most of its rivals.

Net Loss

It reported a €1.997 billion net loss for the second quarter, but the adjusted figure of €258 million, taking into account factors including certain costs and taxes, was slightly less steep than that forecast by analysts polled by the company.

Repsol said it would buy back shares and present a new plan in November for how to reach a goal to reduce carbon emissions to net zero by 2050 while maintaining its value.

"We are... ensuring the robustness of our balance sheet and reaffirming our commitment to lead the energy transition," chief executive Josu Jon Imaz said in a statement.

Repsol shares rose 1%, outperforming Spain's blue-chip IBEX 35 index, before retreating into slightly negative territory.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days