Madrid, Spain– Spanish energy giant Repsol said Thursday its 2022 net profit soared on the back of higher oil prices, enabling it to boost investments into mainly greener power sources.
The company posted an annual net profit of 4.25 billion euros ($4.55 billion), up from 2.5 billion in 2021, despite “a year marked by uncertainty, volatility, and complex market dynamics due to the invasion of Ukraine.”
The company said gas and oil prices “rose sharply during the first half of 2022” due to sanctions imposed against Russia over its invasion of Ukraine which boosted its bottom line.
Oil and gas firms around the world saw their net profits rise last year due to soaring energy price in the wake of the war in Ukraine.
Brent crude flirted with $140 per barrel last March and European gas prices jumped by a factor of 15 during the summer to hit 350 euros per megawatt hour, but they have dropped sharply since then.
The surge in energy prices mechanically drove profits higher without energy firms having to invest in more production or cut costs.
Repsol said the higher earnings had allowed it to boost investments in 2022 by 40 percent over the previous year to 4.18 billion euros, mainly in Spain and the United States.
The bulk of its investments were in low-carbon technology needed to reduce planet-warming emissions.
The company said it plans to make “historic” investments of over 5.0 billion euros in 2023.
