Repsol Profit Rises 54% On Asset Sales

Repsol YPF's second-quarter profit soared bb 54 percent after the fifth largest oil group in Europe sold assets worth 2.3 billion euros ($2.3 billion) to cover losses in Argentina and repay outstanding debt.

Net income rose to 1 billion euros, or 82 cents a share, from 650 million euros, or 53 cents a share, boosted by one time gains from the sales, it said in a note. Repsol, whose $15 billion purchase of Argentine driller YPF in 1999 saddled the company with debt, more than halved its obligations to 8.96 billion euros.

Stung by Argentina's devaluation and falling oil prices, Chairman Alfonso Cortina has shed assets to repay lenders. Repsol shares this year have fallen by over a fifth, the largest decline among Europe's biggest oil companies.

“It's a good, solid result,” said Irene Himona, an analyst at Morgan Stanley, “The second quarter reflects the full-blown impact of the Argentine crisis.”

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