Press release

2019 half yearly results

27 Sep 2019

    • Cepsa registered H1 2019 Clean CCS EBITDA of €991 million, as a result of the positive performance of the Exploration and Production and Marketing business units
    • Clean CCS Net Income was €253 million, during a period of low refining margins, and crude oil prices which were lower than in the first half of 2018
    • Investments in this period amounted to €409 million, and the free cash flow before dividend payments was €361 million

    • During H1 2019, Cepsa was awarded investment grade ratings from the three major rating agencies and carried out its first bond issuance for €500 million

Clean CCS EBITDA rose to €991 million in H1 2019, an increase of 30% compared to €760 million in H1 2018. The Net Debt/EBITDA ratio stood at 1.5x, three tenths lower than at the end of 2018 (1.8x).

The increase of 30% in H1 2019 Clean CCS EBITDA was mainly due to the positive performance of Cepsa’s Exploration and Production and Marketing business units (+82% vs H1 2018, and +48% vs H1 2018, respectively).

Cepsa's Clean CCS Net Income for H1 2019 was €253 million, compared to €335 million for the same period in 2018. This decrease is attributable to an environment of low market refining margins, and a worse performance in the phenol and acetone business lines of the Petrochemicals business unit.

Applying International Financial Reporting Standards (IFRS) and calculating inventory movements at average unit cost, accumulated net income for H1 2019 was €273 million, compared to €441 million for the same period in 2018.

Investments during the period amounted to €409 million, and free cash flow was €361 million (after taxes and investments, but before dividend payments).

During the first six months of 2019, Brent crude prices averaged $66.0/bbl, 6% lower than the $70.5/bbl average registered in H1 2018.

In terms of safety, the Lost Workday Injury Frequency (LWIF) rate, which measures the number of accidents resulting in absence from work, was 0.89 accidents per million hours worked, in line with the results from 2018. Greenhouse gas emissions (CO2 per ton produced) remained at levels similar to those of 2018.

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