Strong financial results underpinned by efficiencies and reversal of impairments

Posted 23, Jul 19

We now have filed our results for 2018 at Companies House, covering Repsol Sinopec Resources UK Limited (the 'consolidated results') and those of its various subsidiary companies.

The results are very positive:

• Repsol Sinopec Resources UK reported a profit of $1.7bn for the year ending 31 December 2018.

• The total profit was, however, mostly driven by impairment reversals of $1.5bn.

• The joint venture also generated $0.7bn of cash during the year, including material one-off non-recurring receipts. This cash reinforces the Balance Sheet, supporting recovery of losses generated in previous years.

• 2018 performance highlights included improvements in production, production efficiency and costs as result of a broad range of successful initiatives, specifically: -

  • Improved production of 58.5mboe/d for the year, +2.0mboe/d ahead of WP&B target of 56.5mboe/d, as a result of:
    • improvement in Production Efficiency across the portfolio from 74% in 2017 to 78% in 201
    • full year of production from Flyndre, Cayley and Shaw fields which came online during 2017
    • successful well interventions at Auk resulting in higher operating efficiency

Bill Dunnett, Chief Executive Officer said: "We delivered outstanding operational results in 2018. Most importantly, we achieved this with our best ever HSE performance.

"We are focused on sustained value creation to secure employment beyond 2030 for our staff, contractors and supply chain. We have been utilising new technologies and aligning fully with the OGA's MER strategies.

"Our shareholders have made long-term strategic investment commitments, worth in the region of $4bn, to transform this business. These results reflect the significant potential value that still exists in our portfolio and across the broader North Sea."