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Repsol president Antonio Brufau. Image courtesy of Repsol/Flickr.

Spain’s Repsol reported a $1.35 billion full year net loss on Thursday after taking over $3 billion in impairments.

The company posted a net loss of 1.22 billion euro, or a loss of about $1.35 billion, down from a net income of $1.78 billion in 2014.

The company booked a full year 2015 adjusted net income of $2.05 billion, a 9 percent year-over-year increase.

“This result specifically measures the performance of the business units and demonstrates the company’s strength and resilience in the face of adverse situations such as the current low oil and gas prices,” Repsol said.

The company’s EBITDA at current cost of supplies for the full year was $5.53 billion, a 6 percent increase over 2014.

Repsol booked $3.25 billion in “extraordinary impairments” for the full year that it said “can be reversed over the next few years in the event of a change in price.”

Repsol’s upstream segment fell to an adjusted net loss of about $1 billion, or 909 million euros, compared to an income of $649 million in 2014 due to the “steep decline in international hydrocarbon prices.”

The company’s full year 2015 production averaged 558,900 barrels of oil equivalent per day, a 57.6 percent increase over the previous year.

During the last quarter of the year production rose to 697,500 boepd, 88 percent higher than the same period in the previous year and hitting “the optimal level established by the company in its Strategic Plan,” Repsol said.

Talisman assets contributed 202,900 boepd to average annual production.

The group’s proved reserves jumped by 54 percent during the year to 2.373 billion barrels of oil equivalent.

Repsol’s downstream unit saw its net adjusted income climb 112.5 percent to $2.37 billion for 2015, up from $1.11 billion in 2014.

“The Downstream unit achieved excellent results in 2015, supported by the margins in refining and chemicals, and driven by investment in efficiency alongside operational improvements undertaken over the last few years,” Repsol said.

The company’s refining margin indicator was 8.5 dollars per barrel, twice its level in 2014.

Gas Natural Fenosa’s adjusted net income ticked up 3 percent year-over-year to $499 million thanks to the “contributions of CGE Chile and better performance in Latin America, which have offset the lower contribution of the gas commercialization business.”

Repsol said it will increase synergies from its acquisition of Canada’s Talisman to $400 million, up from its  initially-identified synergies of $220 million.

Repsol added that it has already generated over $200 million in synergies from the Talisman integration.

The company also plans to reduce its planned investments for 2016 to 2017 by an additional 20 percent to $1.98 billion.

The group’s liquidity stood at $10.07 billion at the end of the 2015 fiscal year, more than twice the level of its short-term gross debt maturities.

Repsol added that its breakeven point for generating positive cash flow is currently at $40 dollars per barrel after interest and dividends.