OREANDA-NEWS. March 25, 2014. Accumulated net income posted by the CEPSA Group at December 31, 2013, on a clean current cost of supplies (CCS) basis which calculates inventory valuation at replacement cost and excludes special items, totaled EUR 370.7 million, sliding 33% (EUR 183.9 million) year-on-year. The Group’s turnover fell slightly by 4.3%, amounting to EUR 27,583 million, compared to EUR 28,810 million in 2012.

Earnings performance was undermined by a myriad of factors, namely lower crude oil prices, sharply narrower refining margins, the slump in demand for motor and other fuels in Spain and the enactment of new power price regulations.

Applying International Financial Reporting Standards (IFRS) , which uses the weighted average cost method of accounting for valuing inventory, CEPSA’s net income in 2013 stood at EUR 533.8 million, evidencing a negative variance of 7% (EUR 42 million) compared to the previous year.

Noteworthy in December 2013 were the sales of CEPSA’s equity stake in the Colombian oil pipeline OCENSA as well as a 5% shareholding in the fuel storage and distribution company Compania Logistica de Hidrocarburos, S.A. (CLH), generating net gains of EUR 260 million which were included in IFRS results for 2013. Factoring out these non-recurring items, the year-on-year decline in IFRS net income would have been 52%.

Out of total net income, earnings generated from business activities abroad, mainly in E&P and Petrochemicals, accounted for 66% whereas the rest, 34%, were from domestic-based businesses.

Capital expenditures in 2013 amounted to EUR 926 million, up EUR 192 million compared to the same period of 2012.  Out of the year’s capital spending figure, 42% was allocated to the upstream segment.

Proceeds from the divestment of equity stakes, together with the reduction of EUR 660 million in working capital, enabled the Company to end the year in a robust liquidity position. Net debt fell to EUR 825 million, with the debt-to-equity ratio standing at 11.5%.

Regarding safety performance indicators and reflecting CEPSA’s ongoing efforts to make safety a priority focus, the LWIF rate (number of total recordable lost-workday injuries per one million hours worked) fell to an all-time low of 2.