21 Jun 2019
- Cepsa registered Q1 2019 Clean CCS EBITDA €468 million and Clean CCS Net Profit of €124 million
- Production has begun at the SARB and Umm Lulu oilfields in Abu Dhabi, significantly increasing sales of crude oil. Production started prior to the scheduled date and at higher rates than initially expected
- During Q1 2019, Cepsa carried out a major scheduled shutdown of the Gibraltar-San Roque refinery to increase conversion capacity
Clean CCS EBITDA 1 rose to €468 million in Q1 2019, compared to €356 million in Q1 2018, an increase of 31%. The Net Debt/EBITDA ratio stood at 1.7x, slightly below the ratio as at the end of 2018 (1.8x).
The increase of 31% in Q1 2019 Clean CCS EBITDA was mainly due to the positive performance of Cepsa’s Exploration and Production business (+93% vs Q1 2018) and Marketing business (+23% vs Q1 2018).
Cepsa's Clean CCS Net Profit for Q1 2019 was €124 million, compared to €165 million for the same period in 2018. The decrease is due to higher depreciation in the E&P business related to the SARB and Umm Lulu fields, lower production in Refining as a result of the scheduled shutdown of the Gibraltar-San Roque refinery and lower production and margins in the Chemicals business, especially in the Phenol / Acetone line.
Similarly, but applying International Financial Reporting Standards (IFRS) and calculating changes in inventory at average unit cost, accumulated net income for Q1 2019 was €151 million, compared to €189 million for the same period in 2018.
Investments during the period amounted to €208 million and free cash flow was €95 million (after tax payments and investments).
During the first quarter of 2019, the Brent crude price averaged $63.2/bbl, 5% lower than the $66.8/bbl average price registered in Q1 2018.
In terms of safety, the Lost Workday Injury Frequency (LWIF) rate, which measures the number of accidents resulting in absence from work, was 1.12 accidents per million hours worked, positioning Cepsa in the 2nd quartile during the last 12 months as per Concawe (the main European association of the refining industry) peers benchmark. Greenhouse gas emissions (CO2 < per ton produced) remained at levels similar to those of 2018.
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1 Earnings before interest, taxes, depreciation and amortization, excluding non-recurring items and calculating the variation in inventories at replacement cost.