REPYY Repsol SA (QX)

By Carlos Lopez Perea

MADRID--Repsol SA (REPYY) said Thursday that second-quarter net profit fell 30% in the second quarter from a year earlier on a restructuring charge as Spain's largest oil company seeks to cut costs.

Net profit in the quarter fell to 205 million euros ($226.73 million) from EUR292 million a year earlier. The company booked a EUR346 million restructuring charge due to staff cutbacks as it seeks to trim expenses. Repsol shares fell 0.6% in early morning trading in Madrid.

The oil producer said net adjusted profit, which excludes gains or losses in the value of inventories and one-off items, rose 11% in the second quarter from EUR312 million a year earlier.

Repsol's upstream business swung to a net adjusted profit of EUR46 million from a loss a year earlier because of lower exploration costs and greater production due to the incorporation of Talisman Energy. The downstream business saw a 14% decline in net adjusted profit to €378 million in net adjusted profit due in part to maintenance costs.

Earnings before interest, taxes, depreciation and amortization fell 2.2% to EUR1.39 billion compared with the second quarter of 2015.

Repsol's net debt fell year-on-year and quarter-on-quarter to €11.71 billion in the second quarter. Repsol's purchase of Talisman Energy had swelled the company's debt load.

Repsol has stepped up cost-cutting efforts in recent quarters as the price of oil has tumbled. In February, Repsol lowered its dividend to save cash after reporting a EUR2 billion loss in the fourth quarter of 2015.

Write to Carlos Lopez Perea at carlos.perea@wsj.com

(END) Dow Jones Newswires

July 28, 2016 03:54 ET (07:54 GMT)

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