Cepsa’s transformation journey initiated in 2020 continues, and throughout this period there has continued to be a focus on optimization initiatives and cost efficiency measures as part of the “Multi-year Efficiency Program” (MEP) put in place in early 2020. The MEP is a group-wide effort involving all Business Units and Functional Areas consisting of more than 1,100 initiatives aimed at boosting EBITDA and cashflow generation in the period 2020 – 2023, with a new organization fully devoted to its delivery. As of June 2021, thanks to this program, Cepsa has already captured €131 million of sustainable savings, which are additional to the €73 million achieved in 2020 as part of the Contingency Plan.
Upstream delivered substantially stronger results with EBITDA of €388 million, up 71% vs H1 2020, as a result of higher realized crude prices (+57% vs. H1 2020) and lower operating costs as production from low cost regions increased due to the partial lifting of OPEC quotas.
In Refining, despite lower average utilization rates at refineries in H1 2021 vs H1 2020, EBITDA increased 4% to €87 million as a result of improved margins and the successful implementation of cost efficiency measures. Moreover, utilization levels have been gradually increasing through H1 up to an average of 84% during the month of June.
Commercial delivered EBITDA of €191 million, up 8%, with sales volumes similar to H1 2020 but lower vs H1 2019, as performance continues to be affected by Covid-19 and mobility restrictions.
Chemicals continues to deliver record results, with EBITDA of €231 million, up 40% vs H1 2020, thanks to a combination of robust margins due to a tight supply environment and an enhanced commercial strategy across all segments.
Cepsa continued to optimize investments, with capex decreasing by 35% vs. H1 2020 to €212 million.
The Board of Directors, which met yesterday, reviewed and supported the key principles of Cepsa’s new strategy. Full details will be announced to the market in the early Fall.