Business Description

Repsol SA engages in the exploration and production of natural gas, crude, and refined petroleum. The following business segments are operated by the company: Downstream, Upstream,  and Corporation & Others. The Upstream segment is involved in the development and exploration of natural gas resources and crude oil. The Downstream segment deals with trading, refining, and transporting crude oil and other oil products as well as the regasification and commercialization of natural gas and liquefied gas. The Corporation & Others segment covers expenses incurred at corporate centers in Madrid or Calgary. Repsol was established in Madrid, Spain on October 17, 1927.

Key Financials

Revenue (US$ Mn)

• US$ 58,853 Mn was the annual revenue generated by Repsol SA in 2021
• Repsol SA’s annual revenue for 2020 was US$ 40,878 Mn, a -26% decrease from 2019
• From 2018’s annual revenues, Repsol SA registered a -3.16% decrease in 2019, amounting to US$ 55,241 Mn
• Total revenue of US$ 57,044 Mn was generated in 2018 by Repsol SA

 

Operating Income (US$ Mn)

• Repsol SA’s operating income for 2021 was US$ 4,445 Mn, a -252.38% decrease from 2020
• The operating income generated by Repsol SA in 2020 was US$ -2,917 Mn
• At a -225.68% decrease from , Repsol SA’s operating income of US$ -3,641 Mn was indexed in 2019
• Repsol SA generated an operating income of US$ 2,897 Mn in 2018

 

Net Income (US$ Mn)

• Repsol SA’s net income for 2021 was US$ 2,957 Mn, a -26.8% decrease from 2020
• The net income generated by Repsol SA in 2020 was US$ 4,040 Mn
• At a 59.59% increase from , Repsol SA’s net income of US$ 4,273 Mn was indexed in 2019
• Repsol SA generated a net income of US$ 2,678 Mn in 2018

 

Operating Margin %

• 8% was the operating margin generated by Repsol SA in 2021
• Repsol SA’s operating margin for 2020 was -8%, a 16.92% increase from 2019
• From 2018’s operating margins, Repsol SA registered a -232.65% decrease in 2019, amounting to -7%
• An operating margin of 5% was generated in 2018 by Repsol SA

 

Gross Margin %

• Repsol SA’s gross margin for 2021 was 98%, a 0.1% increase from 2020
• The gross margin generated by Repsol SA in 2020 was 98%
• At a 7.2% increase from , Repsol SA’s gross margin of 25% was indexed in 2019
• Repsol SA generated a gross margin of 24% in 2018

SWOT Analysis

Strengths

Vertically integrated operations

Repsol’s vertically integrated businesses include upstream, downstream, and midstream. Repsol’s Upstream division was involved in oil and gas explorations in 34 countries. This was done either directly or through investee companies. Repsol’s midstream segment is involved in both the electricity and gas industry through its investments in multiple businesses. Gas Natural Fenosa owns shares in the company, which is involved in natural gas distribution, marketing, and the generation, distribution, and commercialization of electricity.

Repsol’s downstream division deals with oil products, chemicals, liquefied petroleum gas refining, trading, and marketing. Repsol owns and operates five Spanish refineries (Cartagena A Coruna Bilbao Puertollano Tarragona A Coruna Bilbao Bilbao Bilbao Bilbao Bilbao and Bilbao). The company can operate its operations independently thanks to vertically integrated operations. This gives the company greater control and allows for cost reductions.