Repsol's commercial, renewables biz reports lower profit in H1 2022

Spanish multi-energy group Repsol SA (BME:REP) said on Thursday that is Commercial and Renewables business posted a total net income of EUR 163 million (USD 166.5m) for the first half of 2022, down from EUR 248 million in the year-ago period.

Adjusted net income, before inventory effect and special items, was EUR 215 million, compared to EUR 228 million in the first half a year ago.

The lower earnings came as the business voluntarily applied discounts at Repsol service stations in Spain to relieve the economic burden on consumers. The customers saved a total of EUR 150 million, which Repsol absorbed, but the service stations failed to make a profit, the oil-and-gas major explained.

The utility part of the Commercial and Renewables unit also posted a loss, Repsol said without disclosing the figure. The power and gas retail sub-segment was negatively impacted by high power and gas pool prices, but recorded increased sales and acquired more customers.

The low carbon and renewables generation sub-segment did better financially due to increased production during the first semester -- by 106.9% year-on-year to 4,245 GWh, excluding power produced by cogeneration plants. New installed capacity contributed to the production boost, growing to 3,860 MW by the end of June, compared to 3,386 MW at end-June 2021.

The Commercial and Renewables business also includes sale of LPG, petroleum and other specialised products.

The unit’s EBITDA, for all sub-segments combined, totalled EUR 596 million, up from EUR 519 million recorded for January-June 2021. Revenues from ordinary activities came at EUR 16.7 billion, rising from EUR 9.4 billion a year prior.

(EUR 1.0 = USD 1.021)

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