Cepsa improves its results by 48% until September due to the rise in oil and the improvement in margins

Net profit stood at 498 million despite rising energy prices and demand still below pre-pandemic levels.

The Torre Cepsa office building in Madrid.

In the first nine months of 2021, Cepsa has reached a gross profit (EBITDA) from 1,346 million euros, which represents an increase in 48% compared to the same period in 2020 (910 million euros). In total, the net profit it has been 498 million. It is substantially above the losses of 810 million euros registered in the same period of 2020, affected by the deterioration of assets, the environment of low prices and the reduction in demand.

The energy company associates it with the rise in oil prices and increased crude oil production, the improvement of margins and increased refining production, and the consistent performance of both the Commercial and Chemical areas.

Solid performance is also noted thanks to the organization’s continued focus on capturing efficiencies and operational excellence, coupled with an improvement in the market environment. All this, despite the challenges posed by rising energy prices and demand still below pre-pandemic levels.

By business units

In Exploration and Production, Cepsa recorded a significant improvement in its results, reaching an EBITDA of 615 million euros in the first nine months of the year. It is 83% more than in the same period of 2020. This year-on-year increase has been mainly due to the rise in crude oil prices (+66%), to the reduction in production costs -with an 11% year-on-year decrease in operating expenses-, and to a slight increase in production (+ 1%).

In refining, despite the fact that margins were affected by the increase in energy prices, the increase in production in the refineries and the satisfactory application of cost efficiency measures translated into an EBITDA of 117 million euros in the period from January to September. 240% more compared to the same months of 2020, with a total of 34 million euros.

The EBITDA of the commercial area It continued to improve, with an increase of 12% compared to September 2020, to 345 million euros. The company justifies it thanks to a good margin performance and a rigorous cost efficiency approach, despite the fact that Sales volumes are 15% below pre-pandemic levels.

The business of Chemistry reached an EBITDA of 355 million euros in the first nine months of the year. This is a 39% increase compared to September 2020 (and 91% compared to the same period of 2019), mainly driven by the positive impact of an improved business strategy, coupled with a sustained trend of record operating performance since 2019.

During the quarter, Cepsa’s Chemicals business achieved an important milestone with the production of the first volumes of LAB, raw material to produce biodegradable detergents, from vegetable oils.