Cepsa registered a loss of 297 million euros in IFRS (International Accounting Standards) net profit in the first quarter of 2023, compared to the net profit of 265 million euros that it registered in the same period of the previous year that the company attributes ” to the extraordinary tax amounting to 323 million euros that is levied on energy companies in Spain, as well as the drop in the variation in inventories”, as reported to the market this Friday.
In the first quarter, Cepsa’s total tax contribution reached 1,786 million euros, of which 67%, that is, 1,192 million euros, were paid in Spain.
This is in addition to the extraordinary tax of 323 million euros imposed on Cepsa based on 2022 revenue, which must be paid this year. Cepsa paid 164 million euros of extraordinary tax in the first quarter and debited the full amount.
“There is no doubt that these are uncertain times, especially in the energy markets and in the regulatory environment. The fact that the extraordinary tax levied on Spanish energy companies caused Cepsa losses under international financial reporting standards in the first quarter illustrates its poor design and disproportionate impact – more than double that of our main competitors in proportion to net profit – in a company like Cepsa that is investing heavily in Spain’s energy futureâ€, stated Maarten Wetselaar, CEO of Cepsa.
Adjusted net profit, using Spanish accounting standards, stood at 176 million euros, compared to 58 million in the first quarter of 2022, thanks to the improvement in refining margins.
The adjusted gross operating result (Ebitda) was 556 million euros in the first quarter of 2023, compared to 605 million euros in the same period of the previous year, that is, 8% less.
This indicator has been influenced by “the drop in crude oil prices and refining production as a result of the scheduled maintenance stoppages in both the Huelva and Campo de Gibraltar energy parks, circumstances that undermined the solid refining margins and the positive results of Commercial
The company’s investment reached 114 million euros in the first quarter of 2023 compared to 89 million euros in the first quarter of 2022, of which 30% corresponded to sustainable businesses, compared to 17% in the first quarter of the year in line with the established Positive Motion strategy to lead the green hydrogen, biofuels and electric mobility sectors in Spain and Portugal.
By business areas, the behavior was uneven. Energy reached a gross operating result of 211 million euros, 48% more, driven by the higher refining margins due to the fall in oil and gas prices and despite the fact that the Spanish demand for fuels decreased by 2% compared to the first quarter of 2022 and 9% compared to the fourth quarter of 2022, affected by general macroeconomic factors, such as the increase in interest rates and high global inflation.
In Chemicals, the adjusted gross operating result was 64 million euros, compared to 110 million euros in the first quarter of 2022 and also below the 70 million euros registered in the fourth quarter of 2022. It is result “ of the slowdown in demand, especially in Europe, as a result of high energy costs and high inflation, which have forced relevant customers to temporarily stop their operationsâ€, explains the note issued by Cepsa.
The Exploration and Production area obtained an adjusted gross operating result of 310 million euros in the period compared to 384 million euros in the same period of the previous year due to the decrease of up to 20% in crude oil prices and the lower production of 71,800 barrels/day, lower than that of previous quarters (81,500 barrels/day in the first quarter of 2022 and 81,800 barrels/day in the fourth quarter of 2022).
