Repsol posted a sharp rebound in first-half earnings, reporting net income of €2.201 billion as higher oil prices and market turmoil triggered by the conflict in Iran boosted inventory values and refining margins, even as the company poured billions into securing fuel supplies.

 

The Spanish energy giant said adjusted net income — its preferred measure of underlying business performance — reached €2.711 billion in the first six months of 2026, underscoring strong operational performance despite heightened geopolitical uncertainty.

 

The results come as global energy markets face renewed disruption following the conflict in Iran, ongoing fighting in Ukraine and attacks on Russian refineries, which have tightened supplies and driven sharp swings in oil, gas, diesel and jet fuel prices.

 

To safeguard supplies during Spain's peak summer travel season, Repsol invested €2.4 billion in building inventories of crude oil and refined products, while also spending €50 million on additional fuel discounts for customers across its nationwide service station network.

 

The company, which has no assets in the Middle East, said the measures helped strengthen Spain's energy security at a time when fuel shortages have affected parts of Europe.

 

Chief Executive Officer Josu Jon Imaz said the latest geopolitical tensions reinforced the strategic importance of conventional energy.

 

"The conflict in Iran has highlighted the importance of security of supply and the essential role of oil and gas in meeting global demand. Repsol maintains its commitment to meet the needs of society, reinforcing fuel production and applying additional discounts for its customers at a key time of the year for Spanish tourism."

 

The company's reported net income was boosted by a positive €823 million inventory valuation effect as crude oil prices climbed. A year earlier, Repsol earned €603 million, weighed down by falling oil prices and the impact of Spain's nationwide blackout in April 2025.

 

Repsol's industrial business delivered the strongest performance, with adjusted earnings soaring to €1.683 billion, supported by stronger refining margins. Exploration and Production generated €673 million, while the Customer business increased earnings 5.1% to €369 million.

 

The company also booked €1.333 billion in impairments and provisions, largely linked to its chemicals business and low-carbon generation assets in Chile, citing rising feedstock costs, supply disruptions and structural pressure on Europe's chemicals industry.

 

Net debt fell to €3.667 billion by the end of June, down more than €1.1 billion from the previous quarter, helped by strong cash generation and the sale of a 49.99% stake in a Spanish renewable energy portfolio to Masdar.

 

Repsol said it contributed €6.602 billion in taxes and public charges during the first half, with around 70% paid in Spain.

 

The company also continued expanding its upstream portfolio. Production rose to 558,000 barrels of oil equivalent per day in the second quarter, the highest level in two years, driven by new production from the Pikka project in Alaska and progress on projects in Brazil and Libya.

 

In its industrial business, Repsol commissioned its second renewable fuels plant in Spain and advanced a major renewable hydrogen project at its Petronor refinery, while total renewable generation capacity exceeded 6,000 MW following new projects in Spain and the United States.