Repsol First-Half Net Profit Fell 4.3% on Lower Output, Higher Costs

Spanish-Argentine oil major Repsol said Thursday first-half net profit fell 4.3%, hurt by higher exploration costs and a lower hydrocarbon output.

Madrid-based Repsol said net profit came to 1.71 billion euros ($2.35 billion) in the six months to June 30, compared with 1.78 billion euros in the same period a year ago.

The company did not immediately provide a number for adjusted net profit, its preferred measure of profitability, which excludes minority interests and nonrecurring items.

The shares dropped 2.7% to 27.70 euros ($38.07). They have risen 23% since they hit a one-year low in March, boosted by support for the company's plans to divest up to 45% of its troubled Argentine division YPF.

The division, formerly a state-owned company, was acquired by Repsol in 1999 for around $15 billion and accounts for about a third of earnings and half of Repsol's hydrocarbon reserves.

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