By Pietro Lombardi
MADRID (Reuters) – Spain’s second-largest oil company Moeve, formerly known as Cepsa, said on Tuesday it swung to a profit last year on the back of growing earnings at its energy and chemicals divisions, while boosting investments.
The results come as the company presses ahead with its plan to shift to low-carbon energy and sustainable transport, focusing on green hydrogen, biofuels and electric mobility.
Net profit for the year was 92 million euros ($96.33 million) compared to a 233-million-euro loss in 2023.
“Our 2024 financial performance improved markedly compared to last year but should be further improved to produce industry-leading returns,” CEO Maarten Wetselaar said, deeming 2024 a “historic year” for the company.
Despite a 30% drop in refining margins, which also fell at a host of peers including its larger Spanish competitor Repsol, earnings at the company’s energy division rose 75%.
Growing demand for products such as acetone led to a 14% increase in earnings at its chemicals unit.
Owned by Abu Dhabi fund Mubadala and U.S.-based private equity firm the Carlyle Group, Moeve rebranded last year to reflect its shift towards low-carbon businesses under an 8-billion-euro plan. It has sold 70% of its oil production assets since 2022, including operations in Abu Dhabi and South America.
The asset sales were reflected in the 40% earnings drop at its upstream unit.
“Robust cash generation allowed us to more than double sustainable capex to advance key projects,” Wetselaar said.
Last year, the company started construction of a 1.2-billion-euro biofuels plant.
With a 2-gigawatt target by 2030, Moeve wants to be a major player in the green hydrogen industry.
“We’re working toward starting construction on the first phase of the 2-GW Andalusian Green Hydrogen Valley, subject to incentives and regulatory hurdles being resolved,” the CEO said.
($1 = 0.9550 euros)
(Reporting by Pietro Lombardi; Editing by David Latona and Louise Heavens)
