REPSOL: 3Q'19 TRADING STATEMENT - RECOVERY OF THE REFINING MARGIN (ANÃLISIS BANCO SABADELL)
3Q’19 trading statement: the refining margin recovers, but we expect a small impact. BUY.From the 3Q’19 trading statement (results to be released on 31 Oct) we highlight the recovery of the refining margin with respect to summer lows (+57% vs. 2Q’19 but -18% vs. 3Q’18), a trend that would be consolidating in the 2H’19. However, the falling crude oil prices will have a negative impact despite the appreciation of the dollar and higher production levels (+3%, 712kboe). This negative impact and the still-incomplete recovery of the refining margin should bring the 3Q’19 Net Profit to levels very much in line with 2Q’19’s (+1%), but -14% lower than 3Q’18’s. We expect no market impact and maintain our estimates for the full year, which will require a strong refining margin in the 4Q to be met (which we expect and should act as a catalyst). The main risk we see is that the refining margin stops recovering in the 4Q’19 (unlikely), which would mean a revision of -3% in the consensus estimate for Net Profit’19.
Repsol is an oil and gas company. Co. is engaged in all the activities relating to the oil and gas industry, including exploration, development and production of crude oil and natural gas, transportation of oil products, liquefied petroleum gas (LPG) and natural gas, refining, the production of a wide range of oil products and the retailing of oil products, oil derivatives, petrochemicals, LPG and natural gas, as well as the generation, transportation, distribution and supply of electricity. Co. operates in more than 40 countries. Co.'s operations are divided into four segments: Upstream, Downstream, LNG and Gas Natural Fenosa.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.