Repsol: profit beats on higher production, lower costs
(CercleFinance.com) - Spanish oil major Repsol reported better-than-expected third-quarter profit on Thursday, on higher production, lower exploration costs, the appreciation of the dollar against the euro and lower taxes.
Third-quarter adjusted net income came in at 522 million euros, down 11% year-on-year, compared with a consensus of 481 million euros.
Upstream production reached an average of 711,000 barrels per day (bpd) in the third quarter of 2019, 19,000 higher year-on-year, primarily due to the connection of new wells in the USA and Canada, and thanks to an acquisition in Norway.
The strong cash flow from operating activities more than covered investments, dividends and interests, Repsol said.
"This should help the stock after its recent underperformance," cheered analysts at Berenberg after this "strong beat".
However, the market seemed to think otherwise, with Repsol shares slipping 1.1% to 14.9 euros in morning trading.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Third-quarter adjusted net income came in at 522 million euros, down 11% year-on-year, compared with a consensus of 481 million euros.
Upstream production reached an average of 711,000 barrels per day (bpd) in the third quarter of 2019, 19,000 higher year-on-year, primarily due to the connection of new wells in the USA and Canada, and thanks to an acquisition in Norway.
The strong cash flow from operating activities more than covered investments, dividends and interests, Repsol said.
"This should help the stock after its recent underperformance," cheered analysts at Berenberg after this "strong beat".
However, the market seemed to think otherwise, with Repsol shares slipping 1.1% to 14.9 euros in morning trading.
Copyright (c) 2019 CercleFinance.com. All rights reserved.