Cepsa reports Clean CCS EBITDA of €277m in Q3 2020, a 54% increase in the quarter despite challenging environment

20 Nov 2020

3Q 2020 – Improved performance vs 2Q

    • Cepsa posted Clean CCS EBITDA of €277 million in 3Q 2020. While the business continues to be affected by the global impact of the Covid-19 pandemic, this figure represents a 54% increase vs 2Q 2020. This reflects the company’s ability to generate positive results even in an extremely challenging market environment thanks to its diversification and strong level of integration, as well as the measures put in place to preserve cash flow generation.
    • Cash flow from operations1 during the quarter was €224 million, an increase of 159% vs the €86 million registered in 2Q 2020.
    • Clean CCS Net Income for the quarter stood at €39 million vs the negative €93 million registered in 2Q 2020, a result of improved operating results.
    • Operations have been running smoothly during the quarter, with all key assets and industrial plants operating normally, while Marketing sales volumes have increasing significantly vs 2Q 2020.
9M 2020 – Results benefitting from the implementation of the Contingency Plan
    • Clean CCS EBITDA for the first nine months of 2020 was €910 million, a decrease of 41% vs the €1,551 million registered during the same period of 2019, primarily a result of Covid-19. Cash flow from operations1 up to September was €663 million, a 49% decrease compared to 2019, a consequence of lower results due to the impact of Covid-19.
    • The €500 million Contingency Plan, put in place in April as a response to the decline in crude oil prices and the global impact of Covid-19, is substantially on track. As of September 2020, €390 million in savings have been delivered through the reduction of €100 million in costs and €290 million in capex.
    • Since the onset of the Covid-19 pandemic, the company has further improved its capital structure by extending the average maturity of its debt and strengthening its liquidity position through two €500 million bond issues and the execution of new banking credit facilities in excess of €1.1 billion. As a result, the company’s balance sheet remains solid, with total liquidity2 of €4.6 billion covering 4.9 years of debt maturities and a Net Debt to LTM EBITDA ratio of 2.2x3.
    • Cepsa is currently working on an ambitious long-term strategy. This will address the challenges of the energy transition while also establishing clear, meaningful and trackable ESG-related KPIs, including across CO2 emissions reduction, carbon footprint, green fuels and renewable energy. The company expects to announce its new strategy in 1H 2021.
Philippe Boisseau, Cepsa CEO:The year has been defined by an extremely challenging market environment in which the Covid-19 pandemic has had a significant impact on the oil and gas industry globally. However, Cepsa continues to weather the crisis well. We have demonstrated the full benefit of our integrated business model, broad geographic footprint – which provides access to the three major markets of Western Europe, West Africa, and the Mediterranean - and our global leadership position in niche chemical businesses.
Our priority continues to be ensurin the health and safety of our employees, customers and suppliers while maintaining the consistency of our operations and delivering on our responsibility as a major provider of essential energy solutions.
Finally, it gives me great pleasure to announce that we are working on a renewed and ambitious long-term strategy, which will address the opportunities of the energy transition. We are optimistic about this new strategic plan, which will mark a turning point for the company and set the foundations for bringing Cepsa to a leading position in the years to come

For further information on 3Q 2020 results, please refer to the Quarterly Report available at www.cepsa.com/en/investors

To download the full press release click here.

1 Before working capital variation.
2 Defined as cash on balance sheet plus available committed credit facilities.
3 Excludes the impact of IFRS16..

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