Cepsa Q1 Report 2024

“Cepsa delivered further key milestones of its transformation journey, underpinned by a strong financial performance when setting aside the continued impact of Spain’s poorly designed extraordinary tax on energy companies. We kicked off the year with the start of construction of our second-generation biofuels plant with Bio-Oils, an exciting new chapter for the company as we develop decarbonization solutions for our customers. We are pleased to be working with an increasing number of industry leaders to drive forward our Positive Motion strategy, which received a strong endorsement from the investor community this month with our largest bond auction to date of 750 million euros.

Highlights

• CCS EBITDA was €583m Q1’24 versus €556m in the same period of 2023, driven mainly by strong refining margins and higher refining production. These results, which represent an increase of 5% from Q1’23, are particularly positive considering that the Q1’23 figures still included production from Abu Dhabi until March 15th
• Q1’24 CCS Net Income was €226m versus €176m in Q1’23, a solid increase even without contribution from the Abu Dhabi assets which were sold in March of 2023, helped by a solid refining environment during the period
• Cepsa’s cash flow from operations was €318m for Q1’24 versus €274m for Q1’23 showing the resilience of its cash generation
• Cepsa contributed €872m in taxes in Spain during Q1’24, of which €460m were borne and €412m were collected on behalf of the Spanish tax authorities. In February 2024, Cepsa paid €122m corresponding to the first instalment of the windfall tax
• Net debt stood at €2,344m and the Company maintains a strong liquidity position of €4,565m, providing a strong liquidity buffer enough to cover maturities in the coming years
• Capex spend for Q1’24 was €217m, with sustainable capex accounting for 46% of the total1 as the Company continues to deliver on its Positive Motion strategy. As part of capex spend, Cepsa broke ground on the construction of the largest second-generation biofuels plant in Southern Europe in partnership with Bio-Oils
• Among other Positive Motion developments so far this year, Cepsa has agreed to divest its Upstream assets in Colombia, subject to regulatory approval, and successfully completed a 7-year bond issue for €750m, the largest issued by the Company to date, reinforcing its financial strength and ambitious strategy to become a European leader this decade in the production of 2G biofuels and green hydrogen, and the deployment of a network of ultra-fast electric chargers
• Ratings agencies S&P Global and Fitch Ratings reaffirmed Cepsa’s investment grade credit rating and Stable outlook for the Group as part of their annual review