05. GROUP HOLDINGS

Repsol

Repsol

In line with its diversification strategy and in view of the high potential and strategic importance of the energy sector, in 2006 Sacyr Vallehermoso acquired a significant interest in Repsol. As a result of this investment, which amounted to 6,525.5 million of euros, Sacyr Vallehermoso became Repsol core shareholder, with a 20.01% stake.

In December 2011, the Group reduced its stake in this investee to 10.01%, repaying a sizable portion of the associated loan, which now stands at 2,354 million of euros. This amount was refinanced by the bank syndicate until December 2014, through a modification and renewal of the previous loan

Repsol is an international integrated oil and gas company with activities in over 30 countries. It is one of the ten-largest private oil companies in the world and the largest private energy company in Latin America in terms of assets. Its core business is the extraction of oil and gas, transport, refining, and the distribution of derivative products. Repsol YPF also has a strong foothold in the gas and electricity markets of Spain, Europe and Latin America via its 30.1% holding in Gas Natural.

At year-end 2011, Repsol was trading at 23.74 euros per share, making for a gain of 13.83% compared with a 13.11% decline on the Ibex.

Repsol: Cotización Anual 2011

Results

Repsol's net earnings in 2011 totalled 2,193 million of euros. Stripping out extraordinary items, recurring net earnings stood at 2,173 million of euros.

The success of Repsol's exploration activities led to a record increase in the gas and oil reserve recovery rate of 131% for the Group (162% in the upstream business and 112% in YPF).

Repsol made new discoveries such as the large finds in Brazil and the discovery of tight and shale resources in Argentina's Vaca Muerta deposit. The company strengthened its geographical diversification with the acquisition of stakes in blocks in Colombia, Ireland, Norway, Portugal, the United States (including Alaska) and Russia. In a setting characterised by low international margins on refining, the start-up of the new refinery units in Cartagena and Bilbao is a milestone that will allow Repsol to improve the margin of its refining business by between 2 and 3 dollars per barrel.