Repsol Sinopec sinks to $745million losses during ‘extraordinary year’

SourceEnergy Voice
SectorOil & Gas

Repsol Sinopec Resources UK took losses of nearly three quarters of a billion dollars during an “extraordinary” and “challenging” 2020.

The pre-tax deficit of $745.4million (£539m) for the year to December 31, 2020 compares to profits of $232.9m (£168m) in 2019 for the Aberdeen-headquartered firm.

CEO José Luis Muñoz said: “Our 2020 financial results reflect the challenging operating environment experienced over the last 16 months, including fluctuations in oil price, the Brexit transition period and Covid-19.”

Revenues dropped from $1.3bn (£940m) in 2019 to $801m (£579m) in 2020 as Covid hit production levels and sales.

Repsol Sinopec produced an average of 51,526 barrels of oil equivalent per day for the year, down from 58,688 per day in the prior period.

Costs per barrel remained steady at $28.33, from $28.28 in 2019, while the average monthly number of employees decreased by only four, from 899 to 895.

The operator, a joint venture between Spain’s Repsol and China’s Sinopec, took impairments on several of its North Sea more...