Repsol SA, which offered $13 billion to buy rival oil producer Talisman Energy Inc., said fourth-quarter profit tripled on higher refining margins and production in Brazil.
Adjusted net income rose to 370 million euros ($421 million) from 123 million euros a year earlier, Spain’s largest oil company said Thursday in a statement. That beat the 356.2 million-euro average of 11 analyst estimates compiled.
Repsol, whose bid for Calgary-based Talisman was approved by the Canadian producer’s shareholders last week, increased output 16% to 371,000 barrels of oil equivalent per day after pumping more crude in Brazil’s offshore pre-salt region as well as in Venezuela and the US Refining margins improved by one-third to $5.5 a barrel in the fourth quarter, partly offsetting a 39% decline in Brent crude prices in the period.
Earnings before interest, taxes, depreciation and amortization dropped 24% to 551 million euros in the quarter, Madrid-based Repsol said.
Profit at the downstream division, which includes refining and fuel retail, jumped to 349 million euros in the quarter from 21 million euros a year ago, with refining contributing 251 million euros.
The company also benefited from the dollar’s gain against the euro, according to the statement.
The exploration and production division posted a net income of 4 million euros, 98 percent less than the year-ago quarter as higher production was overwhelmed by a drop in oil prices that had “a negative impact” of 232 million euros.
The division completed drilling six wells in the fourth quarter, two of which were dry.
Oil’s drop of almost 50% over the past six months pushed companies from Total SA and Royal Dutch Shell Plc to BP Group Plc and Statoil ASA to announce investment cuts in the past month.
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