Cepsa reports Clean CCS EBITDA of €1,187m and Free Cash Flow of €260m in 2020

05 Mar 2021

FY2020 – Benefiting from business diversification: A strong performance in the Chemical business and the resilience shown in Marketing partially offset lower earnings in Upstream and Refining

    • Clean CCS EBITDA for 2020 was €1,187 million, with all business segments registering positive EBITDA in the year. Upstream and Refining were particularly impacted by the Covid-19 pandemic. However, Chemicals registered a record year and Marketing held up remarkably well, demonstrating the strong resilience of these two business units. Clean CCS Net income for 2020 was slightly positive.
    • Cash flow from operations1 in the year was €881 million, with an additional €138 million of cash released from working capital as a result of lower crude and product prices and the implementation of several optimization initiatives.
    • Cost efficiency and Capex management measures derived from the Contingency Plan put in place in April resulted in cash savings of €527 million as of December 2020, exceeding the initial target of €500 million.
    • Dividends paid corresponding to FY2020 of €166 million, representing a 63% reduction vs the amount paid in 2019.
    • During the year, the company significantly improved its capital structure by strengthening its liquidity position and extending the maturity of its debt facilities, including with two bond issues of €500 million each. As of December 2020, the company had total liquidity2 of €4.6 billion covering 4.9 years of debt maturities and a Net Debt to EBITDA ratio of 2.7x3.
    • Cepsa will unveil its new strategic plan in the coming months. The strategy will address the opportunities presented by the energy transition and mark an inflection point in Cepsa’s long-term vision to continue to operate profitably while reducing its environmental impact.
Q4 2020 – Continuing the trend of improved performance seen in Q3
    • Cepsa posted Clean CCS EBITDA of €277 million in Q4 2020, consolidating the positive trend that began in Q3 when economic activity started picking up again. The business saw improved overall performance, in particular, with EBITDA increasing relative to the previous quarter across all segments except for Marketing, where Cepsa’s network of service stations was impacted by renewed travel restrictions relating to the pandemic.
    • Cash flow from operations4 during the quarter was €218 million, in line with the €224 million registered in the previous quarter, with all four business units generating positive cash flow during the period.
    • Cepsa’s key assets continued to operate normally during the quarter. Upstream production levels improved, while Refining throughput was slightly below the previous quarter due to softer demand in end markets.
Philippe Boisseau, Cepsa CEO: “2020 was an extremely challenging year for the oil and gas industry globally. Our priorities since the onset of the pandemic have been, and continue to be, the health and safety of all our employees, customers and suppliers, maintaining our operations as an essential energy provider to society at large, and stabilizing cash flows, strengthening the balance sheet and increasing liquidity to protect the company.
Thanks to our early focus on efficiency, cost control and marketing initiatives, we have ended the year with positive free cash flow and a very solid financial position. This positions us to benefit from the expected market recovery during 2021.
The Covid-19 pandemic also acted as a catalyst for the energy transition. In the coming months we will be announcing our new strategy, which will mark an inflection point for Cepsa. I am really excited about our new strategic plan which will set out how Cepsa will embrace the opportunities presented by the energy transition and deliver on its environmental commitments.”

For further information on 4Q 2020 results, please refer to the Quarterly Report available at https://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.
4 Before working capital variation.

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