Repsol Swings Back to Profit Helped by Upstream Operations, Cost Cuts

By Selina Williams

LONDON-Repsol SA (REP.MC) swung to net profit in the the third quarter compared with a year earlier as the Spanish oil and gas producer continued to reduce costs in face of the prolonged slump in oil prices that has roiled the sector.

Repsol, the last of Europe's major oil companies to report third-quarter earnings, said Thursday net profit was EUR481 million euros ($534.9 million) in the three months to end-September compared with a net loss of EUR221 million in the same period last year.

Repsol benefited from stronger performance from its exploration and production division, lower financing costs and a gain from the sale of its stake in Spain's Gas Natural.

The oil producer said adjusted net profit, which excludes gains or losses in the value of inventories and one-off items, rose 93% in the third quarter to EUR307 million from EUR159 million a year earlier.

Earnings before interest, taxes, depreciation and amortization rose 13% in the third quarter to EUR1.14 billion from EUR1.01 billion from the same period a year earlier.

--Write to Selina Williams at selina.williams@wsj.com

(END) Dow Jones Newswires

November 03, 2016 03:54 ET (07:54 GMT)

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