Repsol Sinopec announces Full Year Results

Repsol Sinopec Resources UK Limited (“the company”) and its subsidiary companies (“the group”) announces its Full Year Results for the year ended 31 December 2019.

The results have been filed at Companies House, covering Repsol Sinopec Resources UK Limited (the 'consolidated results') and those of its various subsidiary companies.

Jose Luis Muñoz, Chief Executive Officer, commented today:

“Operational performance remained strong for 2019 with steady production, lower operating costs and continued improvement in cash position.

“Our 2019 financial results do not reflect the extremely challenging operating environment we now find ourselves in - compounded by the sharp fall in oil price and the global COVID-19 crisis. We also need to maintain our focus on achieving net zero and reducing the emissions footprint of our offshore operations.

“The unprecedented market situation is affecting our business, but we are taking clear and decisive actions to respond effectively and adapt quickly. We remain focused on reducing operating costs and have revised our 2020-2021 Business Plan to reinforce the resilience of our company to maintain a sustainable business in the years to come.”

2019 FULL YEAR RESULTS SUMMARY

The Group

• Production volumes increased by 219 boe/day to 58,688 boe/day in 2019 from 58,469 boe/day in 2018.
• Operating revenue decreased by $209.4 million to $1,309.9 million in 2019 from $1,519.3 million in 2018 as a result of lower sales price partially offset by a marginal increase in production.
• Operating expenses increased by $1,332.3 million to $1,070.5 million in 2019 (2018: operating credit of $261.8 million). This was mainly due to a decrease in the net impairment credit by $1,163.6 million to $303.7 million in 2019 (2018: $1,467.3 million), and a decrease in other operating income from $415.5 million in 2018 to $48.9 million in 2019 primarily due to recognition of amounts under the Fulmar SPA and insurance settlements in respect of Galley and Shaw in 2018.
• The net impairment credit totalling $303.7 million mainly relates to impairment reversals on the Claymore and Montrose/Arbroath areas, offset by impairment charges primarily on the Piper area.
• Operating costs, after adjusting for changes in inventory, decreased by $170.8 million to $605.9 million in 2019 compared to $776.7 million in 2018 due in part to application of the new accounting standard for Leases ‘IFRS 16’ which has resulted in a reduction of operating costs.

2019 KEY FINANCIAL RESULTS

The group’s key financial and other performance indicators for the financial year were as follows:

	Group 2019	Group 2018
	$’000	$’000
Revenue	1,309,921	1,519,294
Operating (expenses)/ credit	(1,070,459)*	261,846
Production (boe/day)	58,688	58,469
Operating cost per barrel	$28.28*	$36.40
Capital expenditure	237,668	99,869

*Includes benefit of application of IFRS16 Leases (effective from 1 January 2019)

ENDS