Spain’s Repsol missed analyst targets on Thursday as it sunk to a $237 million third quarter net loss despite strong downstream performance.
The company booked an adjusted net income of $171 million, a 62 percent year-over-year decline that was primarily due to $476 million in after tax impairments tied to its Gas & Power division in North America and its unconventional assets in the Mississippian Lime play.
Analysts expected the company to post an adjusted net income of $217.04 million, Bloomberg said.
Net income fell to a $237 million loss, a significant slide from $343 million in net income booked in the same quarter of last year.
EBITDA fell 3.4 percent from the same quarter last year to $1.08 billion while net debt jumped to $14.12 billion from $2.15 billion in the third quarter of 2014.
Low oil prices and production outages in Libya dragged the company’s upstream division to an adjusted net loss of $425 million, down from a net income of $199 million in the prior year quarter.
Operating income tied to Talisman Energy’s upstream assets came in at a $61 million loss tied to negative results in Norway, Australia and North America, Repsol said.
Repsol completed its $8.3 billion acquisition of Canada’s Talisman Energy in May.
Repsol’s downstream division posted $734 million in adjusted net income, up significantly from $204 million earned during the same quarter last year.
The downstream income boost was tied to “improved refining margins and utilization, enhanced performance in Chemicals, Marketing, Trading and Gas & Power,” the company said.
Total production jumped 78.6 percent from the same quarter last year to 653,000 barrels of oil equivalent per day.
Corporate and other operating income accounted for a net expense of $61 million in the third quarter compared to a net expense of $67 million in the same quarter last year.
Last month, Repsol unveiled plans to sell about $7.1 billion in non-strategic assets as part of its newly released four year strategic plan.
The assets slated for sale have not been disclosed yet.