15 October 2015, News Wires – Spanish oil major Repsol has forecast a drop in net profits of up to 22% in 2015, according to reports.
The losses are due low crude prices as well as diminished value of some North American assets, according to wire service Reuters.
Repsol saw net profit reaching a range of between 1.25 billion and 1.5 billion euros ($1.43 billion and $1.72 billion) at the end of 2015, down from 1.61 billion euros in 2014. Meanwhile, the company expects to book a provision of 450 million euros in the third quarter from impairments at its Gas & Power and Mississippi Lime units in the United States, Reuters reported.
Repsol will present its 2016-2020 strategic plan on Thursday, less than a year after buying Canadian peer Talisman in a deal that raised its international profile and boosted output but also drastically increased its debt. The company said after completing the takeover that it would revamp its corporate structure.
The company is expected to increase asset sales and cost and investment cuts as part of the new strategy, which will seek to protect its investment grade rating and dividend from the slump in prices in the past year.
On Tuesday, the Spanish giant announced it had reduced its stake in some of its Alaska North Slope operations, farming down the interests to a partner. Repsol said the deal “aligns the Alaska project with the company’s new strategic plan to integrate its recently acquired Talisman assets into its portfolio and realign legacy assets.”
And earlier this month, the company confirmed it would slash 1500 jobs from its workforce over the next three years.