Last month the government announced the expropriation of 51 percent of YPF from Repsol.
Spain’s oil major Repsol said today its lawyers are studying the legality of Argentina’s expropriation of 51 percent of YPF from the group as high oil prices boosted quarterly profit growth at Repsol even without its majority stake in YPF.
«Our legal council is working on a definition of the legal path to follow and has already started some actions,» the group’s Chief Financial Officer Miguel Martinez said during a conference call following the first quarter earnings.
Excluding YPF, net profit adjusted for one-time items and inventory costs (CCS adjusted net) rose 4 percent to 474 million euros ($613 million) in the first quarter from a year ago, Repsol said today.
Including YPF, net profit would have been larger at 635 million euros, but that would have represented a fall of 3 percent from a year earlier, still beating a Reuters forecast for 504 million.
Last month the government announced the expropriation of 51 percent of YPF from Repsol, which has promised a legal battle to fight for fair compensation for the stake.
Repsol, which been diversifying into new markets, said its upstream business benefited from high oil prices and lower exploration costs, while downstream was hit by weak demand in recession-hit Spain.
But strength from its liquefied natural gas (LNG) business thanks to high prices also helped boost first quarter results, the company said.
buenosairesherald.com