Spain's second-largest oil company Cepsa closed 2023 with a 233 million euro (USD254.74 million) loss after posting another quarterly loss for the last three months of the year, as it did in the first and second quarter, said Reuters.
The results reflect a mix of factors, some affecting the broader market while others linked to the company's strategy and the regulatory framework in Spain. Like other oil companies, Cepsa was hit by lower oil and gas prices, while inflation curbed demand for products of its chemicals unit.
In 2022, the company posted a 1.1 billion euro profit on the back of soaring oil and gas prices following Russia's invasion of Ukraine.
Spain's windfall tax on large energy companies' domestic sales wiped out its first-quarter profit. Since the company does most of its business in Spain, the tax has a higher relative impact on its bottom line compared with companies with large international operations. Cepsa paid 323 million euros last year.
The company also paid the price of its green shift, with earnings from its upstream division falling sharply after the sale of its upstream assets in Abu Dhabi.
Owned by Abu Dhabi fund Mubadala and the Carlyle Group , Cepsa is investing up to 8 billion euros to shift to low carbon energy, and the Abu Dhabi sale is part of this plan.
"Our financial results over the year reflect the strategic repositioning of our global portfolio towards more sustainable areas ... ," Chief Executive Maarten Wetselaar said.
Wetselaar struck an upbeat tone for the future, including its ambitious hydrogen plans. The company will continue to work with the Spanish government "to generate the regulatory clarity and allocation of subsidies ..."
Cepsa had a fourth-quarter loss of 117 million euros, compared with a profit of 117 million euros a year earlier.
We remind, Cepsa and Air Europa have sealed an alliance whereby the energy company will supply 14.4 tons of SAF to the airline for one year to cover the first monthly Madrid-Havana flight. This is the first time that two companies in Spain have established a regular supply of this sustainable fuel for a specific air route. During the period of collaboration between Cepsa and Air Europa, the emission of around 50 tons of CO2 will be avoided, equivalent to planting 575 trees.
mrchub.com