Thursday, 23 May 2024
BusinessCepsa loses 233 million burdened by the extraordinary tax on the sector

Cepsa loses 233 million burdened by the extraordinary tax on the sector

Cepsa recorded net losses of 233 million euros in 2023, a figure that contrasts with the record profit of 1.1 billion that was recorded in 2022, after the explosion in oil and gas prices due to the war in Ukraine. The result is weighed down by the extraordinary tax that the Government levies on energy companies, which the company has appealed (with an impact of 323 million on its accounts), and by changes in the valuation of inventories.

The group, owned by the emirate of Abu Dhabi and the Carlyle fund, highlights in a press release that it has laid the foundations for its transformation strategy to more sustainable businesses and emphasizes that its adjusted net profit (discounting the effect of inventories) was 278 million, with a decrease of 65%, which reflects the sale of the Exploration and Production assets in Abu Dhabi.

Gross operating profit (Clean CCS Ebitda, excluding the effect of extraordinary items and inventories) was 1,402 million, with a decrease of 52%, in a year in which average crude oil prices fell by 18%, to 82.6 dollars per barrel, although the company’s average refining margin was 10 dollars per barrel in the year, 4% more.

Cepsa estimates its tax contribution for the year at 5,529 million, of which 4,150 million, 75%, were paid in Spain.

The CEO of the energy company, Maarten Wetselaar, stated in that note that the 2023 results reflect “the strategic repositioning” of the company’s global portfolio “towards more sustainable areas with the sale of the Exploration and Production portfolio in Abu Dhabi ”, although they were “negatively affected by a poorly designed extraordinary tax that taxes the income and not the profits of energy companies.”

Cepsa highlights that operating cash flow was 1,126 million in 2023, which “demonstrated the company’s resilience in cash generation, even with lower production from the Exploration and Production business and the impact of the extraordinary corporate tax. energy, since during this year the Energy and Chemical segments evolved as expected.”

less debt

Net debt was reduced by 17%, to 2,291 million, and liquidity grew by 8%, to 4,359 million, which allows it to cover debt maturities until the end of 2028. Investments were 732 million, in line with 2022. 40% – about 280 million – was allocated to sustainable projects, with a growth of 56%.

Wetselaar highlighted that in 2023 the group has been able to lay the foundations for its ‘Positive Motion’ strategy to become the leading European provider of sustainable energy and mobility solutions this decade.”

Last February, Cepsa reached a milestone in this strategy with the start of construction of the largest second-generation biofuels plant in southern Europe, which marks the starting signal for the first major project in the new stage of energy. The plant, which will begin production in 2026, will be built through a joint venture with Bio-Oils and will involve a total investment of 1.2 billion.

Likewise, in its commitment to be a leader in green hydrogen, the group has been incorporating partners such as Fertiberia, Enagás Renovable or Alter Enersun to the Andalusian Valley project, which will become the largest green hydrogen hub in Europe. It has also announced the creation of the green hydrogen maritime corridor between North and South Europe and a plan to develop the largest green ammonia plant on the continent, which will be located in the province of Cádiz.

In relation to these investments in hydrogen, Wetselaar assured that the company will continue “working with the Spanish Government to generate greater regulatory clarity and the allocation of subsidies, crucial to take advantage of Cepsa’s full potential and promote Spain’s European leadership in this industry. ”.

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