Spain's Moeve Swings To Quarterly Loss On Weak Refining Margins

Wedoany.com Report-Nov 18,  Spain's second-largest oil company, Moeve, formerly known as Cepsa, posted a third-quarter loss after a sharp decline in refining margins hit its energy business.

Like its larger Spanish competitor Repsol and a host of peers including France's TotalEnergies and bp, the company's refining margins collapsed amid weaker global economic activity and new refineries coming online.

Moeve, which last month rebranded to reflect its shift towards low-carbon businesses, had a third-quarter loss of €59 MM ($62.3 MM) compared to a €278-MM profit in the same period last year.

Growing earnings at its chemicals and upstream operations weren't enough to offset the impact of a 67% decline in refining margins from the same quarter last year.

"In a difficult geopolitical environment, Moeve produced satisfactory financial results that allow continued investment in our transition strategy," CEO Maarten Wetselaar said. "We will continue to work with all authorities to ensure regulatory and fiscal frameworks that are conducive to the investments required to urgently transform our energy system."

Wetselaar has been among the most vocal critics of Spain's windfall tax on large energy companies' domestic sales.

The firm had to shell out €566 MM in 2023 and 2024 for this tax, including €243 MM this year.

Since it does most of its business in Spain, the tax has a higher relative impact on its bottom line than companies with large international operations.

Owned by Abu Dhabi fund Mubadala and U.S.-based private equity firm the Carlyle Group CG.O, Moeve is investing up to €8 B to shift to low-carbon energy and sustainable transport, focusing on green hydrogen, biofuels and electric mobility.

As part of this strategy, it has sold 70% of its oil production assets since 2022, including operations in Abu Dhabi and South America.