Repsol plans to boost jet fuel output as Iran war disrupts global supply
- Refining margins more than double, but profit misses forecast
- Repsol to boost kerosene output by up to 20%
- Company expects 2026 production as high as 570,000 boed
- Repsol to receive crude cargo from Venezuela this week
Spain’s Repsol plans to boost jet fuel output by 15%–20% to offset supply disruptions linked to the Iran war, it said on Thursday, as first-quarter adjusted net profit rose about 57% on strong refining margins.
Spain's main refiner and oil producer reported adjusted net income of €873 MM ($1.02 B), slightly missing a company-provided forecast of €897 MM, with analysts pointing to price lag effects in its downstream business.
Its refining margin in Spain more than doubled year-on-year to $10.9 per barrel, while adjusted earnings before interest, taxes, depreciation and amortization jumped 110% to €2.61 B.
Repsol said volatility stemming from the Middle East conflict supported results. Higher oil prices have benefited European energy companies. Brent crude LCOc1 averaged about $78.38 per barrel in the quarter, up from roughly $74.98 a year earlier, according to LSEG data and Reuters calculations.
Repsol plans to increase jet fuel production at its five refineries in Spain, it said, as it aims to boost its refining margin.
COMPANY BOLSTERS CRUDE INVENTORIES. Repsol allocated €1.2 B in the quarter to build crude oil inventories and maximize feedstock availability.
The company expects to produce between 560,000 and 570,000 barrels of oil equivalent per day (boed) in 2026, which could increase, depending on improvement in Venezuela, it added.
Venezuela has recently signed exploration and other deals with international producers, including Repsol and Italy's Eni, as it opens its oil industry to foreign investment following the ouster of President Nicolas Maduro by U.S. forces in January.
Repsol CEO Josu Jon Imaz said on an analyst call the company plans to boost gross crude oil output in Venezuela by 50% within 12 months and to triple it over the next three years.
The company will receive the first crude shipment from Venezuela as payment for production this week, with additional cargoes expected going forward, it said.
Its shares were up 1.9% by 1222 GMT, outpacing a 0.7% rise in a broader index of European energy companies .SXEP.
Repsol, which has no assets in the Middle East, has applied discounts amounting to €35 MM to date at its more than 3,300 service stations in Spain to mitigate the effect of fuel price volatility on customers, it added.
Net debt at the end of the first quarter was €4.8 B, more than €300 MM higher than the previous quarter.
Repsol said it was on track to meet full-year commitments on shareholder remuneration. It is targeting shareholder distribution of 30% to 40% of operating cash flow.
France's TotalEnergies and Italy's Eni roughly doubled share buybacks, with Eni saying its decision stemmed from expectations that the war would keep energy prices higher for longer.
"In terms of guidance, Repsol has elected to maintain all guidance as a prudent approach to a volatile macro," RBC analysts said in a note.
($1 = €0.8576)
Comments