Cepsa misplaced 233 million in 2023, in comparison with the historic revenue of 1.1 billion in 2022 | Companies | EUROtoday

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Cepsa's headquarters, in Madrid, in November of last year.
Cepsa's headquarters, in Madrid, in November of final yr.AITOR MARTIN (EFE)

The second largest Spanish oil firm, Cepsa, recorded internet losses of 233 million euros in 2023, removed from the revenue of 1.1 billion achieved a yr earlier than. In an atmosphere of reasonably falling oil costs however secure revenue margins within the refining enterprise, gross working revenue (Ebitda) contracted by 52%, going from virtually 2,940 million to 1,400 million. The drop in working money circulation was smaller, a key determine to know the well being of any firm's enterprise and which was decreased by simply 27% in comparison with the historic 2022: 1,126 in comparison with 1,549 million euros, in keeping with the figures given to fulfill this Friday.

Results are largely affected by the sale of all its hydrocarbon property in Abu Dhabi, which accounted for half of its exploration and manufacturing enterprise. In this department of enterprise, the gross working revenue goes from virtually 1,900 million to lower than 500, a lower that places robust downward strain on Cepsa's annual accounts as an entire.

Energy, the division that features each the refining enterprise and the sale of gasoline or electrical energy, even noticed its EBITDA improve very barely between 2022 and 2023, going from 828 to 830 million. “The refining margins were 4%, the utilization rate of the energy parks [las refinerías] “remained high and sales were stable,” explains the company's management in a note. However, the company warns of a deterioration in the aforementioned refining margins in the final stretch of 2023.

Notably worse was the result of the chemistry area, which has performed the worst in practically all European oil companies in 2023. There, the gross operating profit went from 382 to 223 million euros, 42% less, “a decrease mainly due to the reduction of volumes sold.” The firm attributes this variation in pattern to “the slowdown in the economy,” which “impacted demand and caused a drop in prices.” Unlike what occurred with refining margins, the place 2023 has clearly gone from extra to much less, on this heading the pattern has been precisely the other: “Since the second half of 2023 there has been a recovery in sales that has offset partially these effects.”

Net debt fell, for its half, by 17% to be barely beneath 2.3 billion. Liquidity closed 2022 clearly on the rise: at greater than 4.3 billion, 300 greater than twelve months earlier, “thanks to strong cash generation.” That cash, in money or within the type of undrawn traces of credit score, would permit it to completely cowl all its maturities for 5 years.

In its technique to grow to be one of many oil corporations that does make the transition in direction of renewables, the vitality firm owned by the sovereign fund of the emirate of Abu Dhabi (Mubadala) and the American non-public funding car Carlyle emphasizes two parts: the rise natural funding in “sustainable energies”, which has elevated from 23% to 40%, and the current sale of half of its exploration and manufacturing enterprise. Precisely, in Abu Dhabi.

“In 2023 we will lay the foundations of our strategy to become the leading European provider of sustainable energy and mobility solutions this decade. Our financial results during the year reflect the strategic repositioning of our global portfolio towards more sustainable areas,” explains Cepsa's chief government, Maarten Wetselaar. “I am confident that the strength of our company and the support of our shareholders, together with the appropriate regulatory support, will usher in a new era for clean energy development and high-quality job creation for the benefit of all.”

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