Cepsa returns to profit with 168 million from January to June 2024.

He gross operating result (adjusted Ebitda) of the second-largest Spanish oil company was 1,099 million euros at the end of June, representing an increase of 48% compared to EUR 742 million in the same period of 2023, driven by favourable market conditions for the energy sector and increased sales Chepsa Kimika.

And these results were recorded in a certain environment improving the market environment in the second quarter of 2024 with an average cost of $84.9 per barrel of crude oil, compared with $78.4 per barrel in the same period of 2023, while Cepsa’s average refining margin remained stable at $7.7 per barrel, compared with $7.3 per barrel in the second quarter of last year.

Thus, three enterprises Chepsa-EnergyChemicals and Exploration & Production – delivered strong results in the second quarter, with financial and operating results outperforming the same period last year, in the context of stability operational and market performance.

Thus, adjusted EBITDA in the second quarter of 2024 amounted to 515 million euros, significantly higher than the 186 million in the same period last year, and net profit in the period from April to June amounted to 175 million euros, compared with the “red numbers” of 8 million euros in the first quarter of 2024.

The improved results allowed Cepsa to increase attachments totalling up to €545 million, with sustainable investment representing 45% of organic investment in the first half of the year to continue advancing its Positive Movement strategy.

CEO of the company, Maarten Wetselaarhighlighted Cepsa’s “solid results” across its entire business, although it warned that fuel marketing in Spain “has suffered due to the high level of fraudulent volumes sold on the market.”

Consequences of the emergency tax

He also noted that the company’s financial results “also continue to be negatively affected by the poor design of the Spanish emergency tax on energy companies.”

In this sense, Cepsa has made its contribution. 2.077 million euros in taxes in Spain during the first half of 2024, of which EUR 1,199 million was paid out and EUR 878 million was collected on behalf of the Treasury, including the payment of €122 million for the first tranche of emergency tax for energy companies which is calculated based on sales revenue in 2023, when the company recorded not a profit, but a net loss of 233 million euros.

Despite this, Wetselaar noted that the company continues to move forward in its direction. transformation strategyas evidenced by the start of construction of a second-generation biofuel plant in Huelva, progress in the detailed design of the green hydrogen project in Andalusia or the ongoing implementation super fast chargers for electric vehicles, which will soon also be available at the network of low-cost Ballenoil stations acquired by the group.

As part of this strategy, Cepsa continued during the period divestment of assets from traditional mining businesseswith an agreement to sell assets in Peru following a previous sale announcement in Colombia, both pending regulatory approval.

“Our goal remains clear: to become leading supplier of green molecules “as we contribute to the development of a regulatory and fiscal framework that will allow Spain to expand its potential as a clean energy benchmark,” Wetselaar added.

From my side, cash flow Cepsa’s operations in the first half of 2024 were €735 million in the first half of the year, compared with €416 million in the same period of 2023, demonstrating solid cash-generating capacity even after the sale of its exploration and production assets in Abu Dhabi a year earlier.

While group net debt controlled by Abu Dhabi sovereign wealth fund Mubadala and The Carlyle Group, stood at €2,493 million at the end of June, slightly below the €2,522 million it closed the first half of 2023 with.

Likewise, Cepsa maintains a solid liquidity position of €5,412 million, supported by the issuance of €750 million seven-year bonds in April, which cover maturities in the coming years.

In addition, he signed a €285 million loan with the European Investment Bank (EIB) to build the largest second-generation biofuels plant in southern Europe.