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Repsol on Thursday unveiled a 10 per cent jump in first quarter profits, beating market expectations and adding to the brightening outlook for the oil and gas industry.

The Spanish energy group reported adjusted net income of €630m for the three months to March, up from €572m in the same period last year. Earnings before interest, tax, depreciation and amortisation jumped 80 per cent to €1.84bn.

The improvement was driven above all by a strong performance in Repsol’s upstream operations, where adjusted net income rose from €17m in 2016 to €224m this year. Downstream earnings fell from €556m to €500m, reflecting the shutdown of two refineries for maintenance in the first quarter.

Analysts at Mirabaud said the results were “strong [and] above our forecasts”, and highlighted the group’s progress on cost savings: “Its efficiency and synergy program continues to be on track, having realised and booked more than €500m on a quarterly basis,” the bank said in a research note.

Repsol’s shares, which have risen more than a third over the past year, were unchanged in morning trading, at €14.60.

Related:

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