Full Year 2022 Results - Repsol Sinopec Delivers Operating Profit and Remains Focussed on Corporate Strategy

Repsol Sinopec Resources UK Limited (“the company”) and its subsidiary companies (“the group”) announces its Full Year Results for the year ended 31 December 2022.

The results have been filed at Companies House, covering Repsol Sinopec Resources UK Limited and those of its various subsidiary companies (the 'consolidated results').

Luis Polo, Chief Executive Officer, commented today:

“Thanks to the hard work and commitment of our workforce, as well as an increase in commodity prices, 2022 delivered a strong operating profit of $685 million. The company generated net increase in cashflows of $493 million after investing $183 million in capex activities.

“While increases in hydrocarbon prices have positively impacted the company’s results, we continue to operate in a challenging context, but remain focused on the delivery of our business plan and our aim to consistently deliver results against our corporate strategy – which is focussed on safe and sustainable operations from our producing assets, efficient decommissioning and emissions reduction.”

2022 FULL YEAR RESULTS SUMMARY

• Production volumes increased by 893 boe/day to 38,822 boe/day in 2022 from 37,929 boe/day in 2021 as a result of production efficiency particularly within the Flotta and Monarb areas.

• Operating revenue increased by $422.3 million to $1,433.9 million in 2022 from $1,011.6 million in 2021. The group benefited from a significant increase in hydrocarbon prices with an average price increase of 45% year on year, along with increase in production volumes.

• Operating expenses decreased by $146 million to $748.9 million in 2022 from $894.9 million in 2021. Operating expenses comprised of operating costs of $683.3 million (2021: $654.9 million), depreciation charges of $371.4 million (2021: $300.2 million), a net impairment credit of $345.4 million (2021: 20.7 million) and other net operating expense of $26.8 million (2021: net income $133.3 million).

• The net impairment credit of $345.4 million is comprised of $340m due to reduction in decommissioning liability estimate in excess of ARO asset and $5.4million net impairment charges/reversals relating to oil and gas assets.

• The total tax charge of $63.9 million (2021: $45.0 million credit) reflects the expected tax charge on oil and gas activities adjusted for the impact of deferred tax, Energy Profits Levy charge, foreign exchange, prior year adjustments, amounts recoverable at a rate other than 40% and other permanent tax items.

• Operating costs per barrel were $45.41/barrel (2020: $47.31/barrel).

2022 KEY FINANCIAL RESULTS

The group’s key financial and other performance indicators for the financial year were as follows:

	2022 $000	2021 $000
Revenue	1,433,972	1,011,593
Operating expenses	(748,896)	(894,936)
Profit after tax	601,567	186,821
Production (boe/day)	38,822	37,929
Operating cost per barrel	$45.41	$47.31