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Investing.com -- Spanish energy company Repsol saw its shares decline 1% after releasing a trading update that showed lower-than-expected production volumes for the third quarter.
The company’s upstream production decreased quarter-over-quarter to 551,000 barrels of oil equivalent per day (kboe/d), falling short of consensus estimates of 559,000 kboe/d. This represents a decline from the second quarter’s 557,000 kboe/d.
North American operations appeared to be the main driver behind the production shortfall, with output in that region dropping to 181,000 kboe/d from 189,000 kboe/d in the previous quarter.
Despite the production miss, Repsol’s refining business showed strength. The company reported a refining margin of $8.8 per barrel, exceeding consensus expectations of $8.1 per barrel and significantly improving from the second quarter’s $5.9 per barrel.
Distillation utilization rate reached 85.3%, above the consensus estimate of 83% and markedly higher than the second quarter’s 74%.
In the chemicals segment, Repsol’s margin indicator fell to €258 per ton, down €71 per ton from the previous quarter. The company’s EBITDA in this division is expected to approach breakeven levels, benefiting from recovery after a power outage.
The trading update confirms consensus adjusted income estimates of €789 million. Repsol is scheduled to release its full third-quarter results on October 30.
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