Repsol 4th quarter profits down 48 pct on lower gas prices, refining margins

Repsol Q4 profit down 48 pct on weak refining

MADRID — Spanish energy company Repsol-YPF said Thursday its fourth quarter net profit fell 48 percent from the same period last year because of tighter refining margins.

Profit in the October-December period was €241 million ($326.48 million) compared to €467 million in the same period of 2008, the company said.

Repsol said that despite higher oil prices, increased production and improved results at its Argentine unit YPF, its fourth-quarter adjusted operating income was hit by persistent declines in gas prices and narrower refining margins. It said its refining margin indicator for Spain fell to zero from $8.60 a barrel for the same period in 2008.

Net income for the entire year fell 39 percent to €1.56 billion from €2.56 billion in 2008, mainly due to a 37 percent drop in international oil prices and a 56 perecent fall in gas prices.

It said Spanish refining margins slumped by 82.4 percent during the year.

In midmorning trading, Repsol shares were up 0.36 perecent at €16.66 ($22.57).