Business
Repsol S A : posts net income of €2.201 billion
Repsol S A : posts net income of €2.201
About this update from Repsol Sa
In the first half of 2026, Repsol's activity has been affected by the uncertainty stemming largely from the conflict in Iran and the continuing war in Ukraine and the attacks on Russian refineries, which has placed international energy markets under pressure, causing product shortages and increasing volatility of, mainly, oil, gas, diesel, and kerosene prices. Despite a highly complex environment, Repsol has once again demonstrated its resilience by delivering strong results, advancing its strategic priorities, and responding to society's energy needs. Net income stood at €2.201 billion between January and June, reflecting the increase in crude oil prices on the book value of inventories, which generated a positive inventory effect of €823 million. This compares with net income of €603 million in the first half last year, which was affected by the decline in the price of crude oil resulting in a negative inventory effect of €394 million, as well as by the impact from the nationwide blackout on April 28, 2025. Adjusted net income, which specifically measures the performance of the businesses, was €2.711 billion in the first half of the year. Specifically, adjusted net income in the Exploration and Production (Upstream) business reached €673 million, 6.7% more than in the first half of last year. Adjusted net income in the Industrial business stood at €1.683 billion, driven mainly by higher refining margins, compared with €235 million in the same period in 2025, which was negatively impacted by the power outages last year. The Customer area maintained its growth trend, with a year-over-year increase of 5.1% to €369 million in the first half of the year. Low Carbon Generation recorded an adjusted net income of €6 million. In this context of uncertainty, the company has continued working to ensure the continuity of energy supply at a key time of the year for Spanish tourism, helping Spain face product shortages - particularly diesel and kerosene - from a stronger position than the rest of Europe. To this end, Repsol has allocated €2.4 billion between January and June to increase the inventories at its refineries and maximize the availability of feedstock. At the same time, Repsol has also implemented measures to ease the impact of fuel price volatility. Since the end of March, the company has applied additional discounts on top of its usual offers for private customers who use the Waylet application as a payment method at any of its more than 3,300 service stations in Spain, as well as for professional customers, through the Solred loyalty card. In total, over two months, the company has allocated €50 million to support its customers. In addition, Repsol has just launched a new campaign that doubles fuel savings during the weekends from July 17 to August 30, a time when millions of journeys are made on Spain's roads. Repsol has also proposed improvements to employee conditions through a preliminary agreement with employee representatives, which will serve as the basis for the signing and implementation of the XI Framework Agreement. The agreement sets out progress on salaries, work-life balance, and inclusion. In the first half of the year, Repsol recorded impairments and provisions totaling €1.333 billion, mainly in the Chemicals business and in Low Carbon Generation in Chile. In Chemicals, higher feedstock costs and supply constraints caused by the conflict in the Middle East have exacerbated overcapacity and the loss of competitiveness of the European chemicals industry, structurally eroding the business' margins. Net debt stood at €3.667 billion at the end of the second quarter, €1.133 billion lower than at the end of the first quarter of the year, mainly due to solid cash generation and the deconsolidation of debt following the agreement with Masdar for its acquisition of a 49.99% stake in an operating renewable portfolio in Spain In the first six months of the year, the company made a total tax contribution of €6.602 billion, including taxes and similar public charges, of which 70% (€4.632 billion) was paid in Spain.