Repsol recovers prepandemic sales profits figures: achieves a profit of 1,235 million euros in the first half and reduces its debt by almost 400 - Repsol achieved a net result of 1,235 million euros in the first half of 2021, after losing 2,484 million euros in the same period last year, which places the company again at levels comparable to the time before the pandemic.

The first two quarters of 2019 reached a figure of 1,133 million in this indicator, so energy even improves the results compared to the year before the arrival of the coronavirus.

The adjusted net result, which measures business performance, reached 959 million euros, well above the 189 million achieved in the first six months of 2020.

The company highlights that it has achieved positive figures "in all segments, among which Exploration and Production stood out", which totaled 678 million compared to 51 million in losses in the same period of the previous year.

In the same period of 2019, the figure was 646 million, so it also improves its performance in this segment in which the production of barrels of oil is framed, of 599,300 per day.

In the industrial segment, Repsol has lost its bellows slightly. It has obtained a result of 239 million, below the 296 million achieved in the same period last year. The company blames it for " being affected by the pandemic and the energy transition."

Repsol recovers prepandemic sales profits figures

It is, however, in the area of commercial and renewable energy where energy achieves some of its best results, 40% more than those achieved in the first half of 2020. It then reached 163 million euros, which falls short of 228 million in the first half of 2021.

"Repsol's integrated model and the implementation of the 2021-2025 Strategic Plan allowed it to successfully face the difficult environment and take advantage of the beginning of the recovery in demand and the improvement in raw material prices compared to the depressed scenario of 2020," highlights the company led by Josu Jon Imaz.

Imaz stressed that "the measures we have implemented are allowing us to capture the maximum possible value in this complicated environment, taking advantage immediately of the signs of recovery that we observe, with signals that bring us closer to pre-pandemic levels".

Repsol recovers prepandemic sales profits figures

The company, despite the adversity, has achieved a positive cash flow in all its segments, up to 1,932 million euros, and a free flow of 955 million.

It has also reduced its net debt by 6% (392 million), to be fixed at 6,386 million. Liquidity rises to 9,448 million, more than double its short-term maturities.

In order to improve its financial position, it issued hybrid bonds worth 750 million in March and senior bonds worth another 300 million in May.

Repsol recovers prepandemic sales profits figures

In the results of the second quarter, Repsol has slightly improved its adjusted net worth of 488 million, compared to 471 million in the first quarter of 2021.

The comparison is even more benign for the listed company if these figures are compared with those of the second quarter of 2020, when the company had a negative result of 258 million in this indicator.

The Spanish multinational highlights in a statement that "the health crisis continued to mark negatively the global economy during the first half of the year, although with improvements compared to the unprecedented scenario of 2020", in which Repsol suffered losses worth almost 3,300 million euros.

Repsol, which has set itself the goal of net zero emissions by 2050, has recently made progress in its transition to renewable energy with international operations such as the agreement with Hecate Energy, in the United States, or the start of activities in two photovoltaic parks in Spain.

The listed company has also reported that it has paid on July 7 a dividend of 0.30 euros gross per share in cash to its shareholders.

Repsol recovers prepandemic sales profits figures

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Sabadell earns 51.5% in the first half to 220 million euros and announces a cash dividend with a pay-out of 30%

Banco Sabadell recorded in the first half of 2021 with an attributed net profit of 220 million euros, 51.5% more than the same period last year in the midst of the COVID-19 crisis. Without taking into account TSB, the British subsidiary of the Catalan group, the net profit attributed stood at 181 million euros at the end of June, 16.3% less, according to the bank communicated this Thursday to the National Securities Market Commission (CNMV).

The Board has announced its intention to establish a 30% cash pay-out on the 2021 annual results, in line with the ongoing supervisory dialogue.

Revenues from the banking business, which correspond to the interest margin added to the net commissions, reached 2,395 million, a 0.7% increase in year-on-year terms. In the quarterly comparison, the increase was 3.9%.

The interest margin grew by 2.3% in the quarter and reached 1,685 million euros at the end of June, 1.1% less year-on-year due to the lower contribution of the ALCO portfolio (the fixed income portfolio).

Net commissions reached 709 million euros, representing a 5.4% year-on-year growth mainly due to the good performance of service commissions and investment funds. Income from this item also grew by 7.7% in the quarter.

Total costs reached 1,512 million euros at the end of June 2021, reducing by 3.2% compared to the previous year. In the quarterly comparison, the cost reduction is 3.3%, supported by the implementation of the adjustment plan in Spain carried out in the first quarter and the reduction of general expenses in TSB.

Banco Sabadell's live credit grew 5.1% year-on-year and 1.5% in the quarter. In Spain, live credit shows a growth of 2.8% year-on-year and 1.2% in the quarter.

Mortgage production exceeds prepandemia levels and reached 1,487 million euros after increasing 15% in the quarter, which is a new historical record for Banco Sabadell. In year-on-year terms, this increase is 117 per cent.

As of June 30, 9,000 million euros of ICO funding had been made available out of a total of 12,000 million granted. As for moratoriums in Spain, 83% of the current balance has expired. Thus, of the total of 3,246 million euros granted, an outstanding balance of 540 million remains. In the United Kingdom, £ 94 million of the £ 4,816 million granted on standstills remain in force.

In the six-month period, client resources on balance sheet reached 157,345 million euros (115,929 million excluding TSB) and showed a growth of 6.6% year-on-year (3.9% excluding the British subsidiary). In the quarter, this growth is 2.3% (2.9% excluding TSB).

Call account balances amounted to EUR 140,028 million (EUR 100,808 million without TSB), an increase of 13.0% year-on-year (11.1% ex TSB) and 3.4% (4.1% Ex TSB) in the quarter.

Fixed-term deposits totalled EUR 17,645 million (EUR 15,448 million without TSB) and decreased by 26.4% (EUR 26.5% without TSB) compared to the previous year; in the quarter they decreased by 5.0% (EUR 3.3% without TSB) due to the transfer of deposits to demand accounts.

With the pandemic, one of the concerns about the sector is whether more late payments can emerge. In this sense, Sabadell's arrears ratio remained stable in the second quarter.

Problematic assets were reduced by 142 million euros in the quarter to 7,365 million euros, of which 5,995 million are non-performing loans and 1,370 million foreclosed assets. The coverage stood at 52.8%, reaching 56.4% applying the total provisions constituted for credit on doubtful balances and 37.3% for foreclosed assets.

The group's default ratio fell slightly to 3.58% mid-year, from 3.71% in the previous quarter.