Repsol posts lower profit due to higher investments

Madrid: Spanish energy giant Repsol said Thursday its net profit dropped 13 percent during the first quarter of 2024 due to lower gas prices and higher investments in renewable energy projects.

The group booked a net profit of 969 million euros ($1.04 billion) during the January to March period, down from 1.11 billion euros during the same time last year.

The company said the drop was due to a drop in gas prices, which fell by around 32 percent in the first quarter, and investments of 2.13 billion euros made during the three-month period, half of it in renewable energy.

As part of its strategy to pivot to renewables, Repsol plans to invest between 16 billion euros and 19 billion euros by 2027, with 60 percent of the money earmarked for projects in Spain and Portugal.

Its initiatives include producing renewable fuels from alternative raw materials such as vegetable oils, used cooking oils and biomass, as well as installing solar and wind capacity.

Repsol's decarbonisation commitments have led to heated exchanges in recent weeks between the company and the government, which has suggested that some of its green credentials are misleading, a practice known as greenwashing.

"In recent years, we have seen a proliferation of advertising for products that claim to be green... as far as the government is concerned, we must remain vigilant," Environment Minister Teresa Ribera said last month, referring to Repsol.

The company's chief executive Josu Jon Imaz has rejected the criticism and defended Repsol's efforts to maintain its traditional activities while at the same time reducing its carbon footprint.

"We will fight tooth and nail to continue transforming and improving our refineries" and "maintain industrial employment in Spain," he said.