Spanish oil and gas company Repsol reported its strongest set of nine month results in a decade on Wednesday, buoyed by higher crude prices, but missed consensus forecasts for the third quarter due to weakness in its refining business.

The company’s net income jumped 37 per cent in the first nine months to €2.7bn, while adjusted net income — the company’s preferred measure of its underlying business — rose 11 per cent to €1.7bn.

Its refining business suffered from weak margins in Europe, however, with earnings at €1.1bn falling from €1.4bn in the same period last year. Repsol blamed “the weakness of the dollar against the euro, a more complex international environment and maintenance shutdowns at some industrial facilities.”

“Overall we view this as a mixed set of results, with earnings below a consensus which had already moved down 19 per cent since the trading update, and weakness in the downstream persistent across all of the division’s sub-segments,” said analysts at RBC Capital Markets.

“On the other hand, underlying cash generation was stronger than we expected.”

Free cash flow generated in the nine months was €5.2bn compared to €1.7bn last year, when oil prices were roughly 40 per cent lower.

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