Repsol Sinopec maintains focus during a challenging year

Full Year 2020 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 2020.

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

José Luis Muñoz, Chief Executive Officer, commented today:

“2020 was an extraordinary year. Thanks to the commitment of our workforce, we maintained focus on safe operations and successfully adapted to ever-changing circumstances.

“Our 2020 financial results reflect the challenging operating environment experienced over the last 16 months, including fluctuations in oil price, the Brexit transition period and COVID-19.

“We implemented an industry-leading response to the pandemic, including site control measures and pre-mobilisation testing early in the crisis. We also secured a modified S92a helicopter to safely transfer onshore any member of the offshore workforce displaying symptoms of COVID-19, retaining flexibility to make the helicopter available to other North Sea Operators to evacuate personnel displaying symptoms.

“In spite of the challenges faced over the last year, we remain focused and are continuing to achieve as a business. We have a strategic roadmap which outlines our key targets and priorities including Business Resilience, Portfolio Progress and Energy Transition.

“We have developed an Emissions Management Plan which provides clear and demonstrable commitment to emissions reduction and pathway to 2050 Net Zero and are evaluating a number of emissions reduction and energy transition opportunities, for which Flotta Oil Terminal is well positioned to take advantage of.

“Economic uncertainty continue to be a challenge; however, ensuring continuity of safe operations remains our priority.”

2020 FULL YEAR RESULTS SUMMARY

• Production volumes decreased by 7,162 boe/day to 51,526 boe/day in 2020 from 58,688 boe/day in 2019.
• Operating revenue decreased by $508.8 million to $801.1 million in 2020 from $1,309.9 million in 2019. The group performance was impacted by the COVID-19 pandemic resulting in lower production and volatility in the sales price.
• Operating expenses of $1,543.2 million compared to $1,070.5 million in 2019. Operating expenses comprises operating costs $534.7 million (2019: $633.7 million), depreciation charges of $427.3 million (2019: $784.0 million), impairment charges of $644.4 million (2019: net impairment credit $298.9 million) and other net operating income of $62.9 million (2019: $25.3 million).
• The net impairment charge totalling $644.4 million, includes $39.7 million in relation to IFRS 16 right of use assets and $3.9 million relating to goodwill, the remaining balance of $600.8 million relates to the oil and gas assets held within the North Sea.
• Operating costs per barrel were $28.33/barrel (2019: $28.28/barrel).

2020 KEY FINANCIAL RESULTS

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

	Group 2020	Group 2019
	$’000	$’000
Revenue	801,121	1,309,921
Operating expenses	(1,543,189)	(1,070,459)
Production (boe/day)	51,526	58,688
Operating cost per barrel	$28.33	$28.28

ENDS