July 25, 2021

Repsol regains the throne for revenue after nine years of ownership of Telefónica | Companies

Repsol regains the throne for revenue after nine years of ownership of Telefónica | Companies



Telefonica is losing in the second half of the year the scepter that carries in the last nine as Spanish group with the highest turnover.

Repsol not only has just marked its better net profit in 10 years at the end of a third quarter (2,171 million, after a 37% increase) but managed to impose on sales to the leader of the last decade among Spanish companies by turnover: Telephone.

In the pulse with the teleco, the oil company concluded the first semester still behind and the sorpasso it was produced during the summer. In view of the consensus of the analysts consulted by Bloomberg, the new status tends to consolidate and even greater distances are expected in favor of Repsol. It was necessary to go back to 2008 to see it ahead of Telefónica in turnover, when the first sum of 60,368 million in the full year and the second declared 57,946 million.

The teleco suffers the impact in its sales of the weakness of the currencies in Latin America and the uncertainty for the Brexit

The group directing Antonio Brufau and Josu Jon Imaz It moves in its best volumes since YPF lost to the Argentine government. The 36,772 million of the three quarters closed and make it a leader by turnover among Spanish listed, after an advance of more than 21%. Opposite, the figure of 35,776 million declared by Telefónica, 7.9% less than a year ago. Although not strictly comparable, Repsol also exceeds Santander's 35,882 million, whose gross margin falls by 1.2%. They clearly weigh against these last two companies the weakness of Latin American currencies in which they charge part of their services and the uncertainty that lurks in the pound sterling.

Telefónica, with focus on reducing debt and operating expenses, should move around 49,300 million at the conclusion of this 2018, as anticipated by analysts who follow the company, and the figure would fall to the environment of 48,900 million in 2019. So far this year, the conglomerate that presides José María Álvarez Pallete, declares a negative impact at the billing level of 3,300 million for the exchange rates.

Repsol expects a jump of more than 10,000 million between 2017 and 2018, with a closing estimate of 51,900 million and a market consensus that increases sales for the next year by 4.8% over the forecast of 2018, up to 54,400 million. They serve as traction the prices of the barrel of oil or diversification into new businesses.

After the expropriation of YPF and with a collapsed crude, Repsol's turnover fell to 34.7 billion in 2016. After that negative milestone, revenues have surpassed the slump.

Inorganic growth

They pull from sales, and from Repsol's cash generation, exploration and production businesses (upstream), and in the future the new profile as an electric trader in Spain. Repsol has been made with unregulated generation assets and the trading company of Viesgo by 733 million, which allows it to reach the 2,950 MW installed (it already had 600 MW in cogeneration). An escalation that diversifies the company, prepared to sell electricity with the 100% renewable certificate, once he concluded his career at Gas Natural Fenosa.

To this, Repsol added in the last quarter the takeover of the Valdesoras photovoltaic plant, in Valdecaballeros (Badajoz), with 264 MW in the administrative processing phase; has entered into the floating wind power, with the financing of 26 MW with EDP in Portugal, and has launched the new Repsol Electricity and Gas. In fact, yesterday launched the advertising campaign to take positions among the light traders and will include in his web page a new section as electric and natural gas supplier. An offer that will be reinforced by combining it with discounts in the network of service stations.

Other open business options include the installation of gas stations in Mexico; the expansion in the trading or trading of oil; the bet for the international lubricant business, or the development of the US gas field Marcellus, in which it expects to obtain in the fourth quarter of 12,000 to 14,000 barrels per day more oil equivalent.

In the pulse with the teleco, the oil company concluded the first semester still behind and the sorpasso it was produced during the summer

The largest Spanish oil company has increased its hydrocarbon production by 4% compared to the first three quarters of 2017, until it reached an average of 713,000 barrels of oil equivalent per day, thanks to new projects in Trinidad and Tobago, the United Kingdom, Algeria, Peru and Malaysia. In upstream, the company's cash-flow engine, doubles the result of last year based on efficiency measures, higher volumes and the increase in international prices, as the company pointed out a few days ago in the presentation of its results.

Already in the business of downstream (Refining, Chemistry, Marketing, Lubricants, Trading, LPG, Gas & Power), obtains improvements in the Gas & Power, Marketing and LPG divisions.

Good expectations for shareholders

Increasing dividend in the oil company. The new levers of business and the rise in the price of a barrel of oil allow Repsol an 8% improvement in shareholder remuneration. The forecast for 2018 is to deliver a dividend of 0.9 euros, raise it to 0.95 euros in 2019 and return to the euro per share in 2020, as expressed in the strategic plan. This was updated in June, taking as reference, remarkably conservative, a barrel of Brent at $ 50.

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