Spanish integrated Moeve expects wider refining margins in the second half of 2025 to support group earnings, after weakness in April-June contributed to a fall in company profit.
Moeve's refining margin fell to $5.80/bl in April-June from 7.60/bl a year earlier, it said today. There was regional weakness earlier in the quarter and the firm's entire 464,000 b/d refining system had to shut and restart after a blackout on 28 April.
But margins have been above $10/bl throughout July and will continue to be supported by "stronger product cracks, higher yields and the adaptability of our refining business," Moeve's chief financial officer Carmen de Pablo said today.
De Pablo sees the visibility of the refining business improving in July-December in terms of marine and aviation fuels, as the timeline becomes clearer for transposition of the EU's renewables directive RED III in Spain. The directive is unlikely to be fully brought into Spanish law before the end of 2025.
The outlook for sales of sustainable aviation fuel (SAF) is positive for the second half of the year, de Pablo said, because airlines have been purchasing and ordering more than the 2pc regulatory minimum blend mandated by RED III in 2025 ahead of directive's transposition.
The blackout, combined with scheduled maintenance at the 220,000 b/d Huelva refinery in April and May, drove refinery output 14pc lower on the year to 4.6mn t in the second quarter. Capacity utilisation was 82pc, compared with 94pc in April-June 2024.
Moeve's Energy business, which includes its core refining and marketing segments, reported a 31pc drop on the year in adjusted replacement-cost earnings before interest, taxes, depreciation and amortisation (Ebitda) to €277mn ($325mn). Initial estimates for losses resulting from the power cut for Moeve's refineries alone are "well above €50mn, which we will claim" said de Pablo.
She did not quantify the blackout-related losses at Moeve's aromatics-focused chemicals division, but noted the firm is over the "worst of the chemicals environment". Adjusted Ebitda at the business fell by 24pc on the year to €58mn, and sales were down by 12pc at 547,000t.
Upstream Ebitda fell by 24pc on the year to €63mn. Moeve's crude production fell by 13pc on the year to 30,000 b/d, reflecting the divestment of 60pc of its upstream portfolio over the past few years. Moeve plans no further disposals this year, de Pablo said, having sold its 25pc stake in exploration block 53 offshore Suriname to TotalEnergies in June.
Moeve's adjusted Ebitda fell by 31pc on the year €356mn in the second quarter, and its adjusted profit increased by 8pc to €186mn on unspecified lower depreciation and amortisation charges.
Profit including the inventory effect and other unspecified one-time items fell by 49pc to €89mn.
Moeve is fully owned by Abu Dhabi sovereign wealth investor Mubadala and US private equity firm Carlyle. Its unlisted status allows it to provide only limited financial information in its earnings results.
Group net debt was steady on the year at €2.5bn as of the end of June. Capital expenditure (capex) fell to €502mn from €673mn, and Moeve expects this to be lower still in the second half resulting in capex of "less than €1.0bn" for the full year, de Pablo said.
