Press Release CEPSA Lays Groundwork for Future with Record ...

Press Release
2008 Business Year in Review
CEPSA Lays Groundwork for Future with
Record-High Capital Spending Plan
• Capital expenditures of over €1,500 million in 2008 will enable the Company to
expand its exploration licenses, upgrade the efficiency of its refineries, strengthen
its strategic core businesses and minimize the environmental effects from its
activities
• In an adverse operating environment, CEPSA upheld its robust financial position
through a rigorous austerity and cost-containment policy in all of its business
segments
• EBITDA totaled €1,520 million while net financial debt remained at moderate levels,
coming to €1,325 million
• CEPSA made ongoing efforts to continue generating employment with the creation
of more than 400 new jobs in 2008
• In the area of safety, the Company achieved its “Zero Accident” target during 365
consecutive days in two refineries and one chemical plant
In 2008, the CEPSA Group managed to consolidate its position in the Spanish energy sector
and broadened its global presence thanks to one of the highest capital spending figures in its
entire history. Overall, CEPSA allocated €1,579 million (148% more than the year before) to
upgrade the efficiency and productivity of its refineries, reduce the environmental impacts
from its operations and strengthen its core upstream (Exploration & Production), downstream
(Refining & Marketing), Petrochemicals and Gas & Power segments.
Amidst adverse operating conditions, and a year characterized by unprecedented volatility in
crude oil prices, the Company was able to maintain its sound financial position, with
shareholders’ equity amounting to over €5,000 million. Austerity and cost-control measures
in all business areas were a decisive factor in accomplishing this goal, enabling CEPSA to
meet the targets of its strategic plan and successfully and optimistically face any new
challenges that may lie ahead. Specifically, in 2009, the Company has been making a
committed effort to overcome the difficulties and turmoil of the year, given the currently
complex outlook.
As regards consolidated earnings figures for 2008, net sales totaled €22,831 million, 21%
higher than the year before. EBITDA stood at €1,520 million, 6.4% more than the previous
year, whereas net income attributable to shareholders of the parent company amounted to
€525 million, 18% less than in 2007. Net financial debt remained at moderate levels, coming
to €1,325 million.
A significant share of investments has been focused on the Exploration & Production
segment. The Group has expanded its presence in Colombia through the acquisition of the
already-producing Caracara oil field and new exploration blocks, twelve of which are
operated by CEPSA. Furthermore, it has broadened and diversified exploration licenses with
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Press Release
new projects in Egypt and Peru, holding operatorship in five of the eight permits in which the
Company has working interests in the aforementioned countries.
CEPSA has likewise developed its expansion and consolidation plan in its Refining &
Marketing area, which includes the capacity increase and upgrading of the La Rábida
Reifnery and the acquisition of TOTAL’s marketing and distribution assets and operations in
Portugal (including 141 service stations).
To maximize synergies among its Petrochemical activities, all of the affiliates in this
segment have been merged into a single company called CEPSA Química, S.A.
In the Gas segment, CEPSA has strengthened its presence throughout the chain, with the
development, in partnership with Sonatrach and TOTAL, of the Timimoun field, the
construction of the MEDGAZ pipeline and its retailing activities via the subsidiary CEPSA
Gas Comercializadora.
As regards Electric Power, CEPSA continued to improve the energy efficiency of its
industrial plants with the construction of three new cogeneration facilities.
A major portion of its capital expenditures was earmarked towards emissions reduction and
efficiency enhancements. In 2008, the Company assigned €106 million to new measures to
ensure environmentally-sound operations and continued to drive its RD&I through its
technology area, in order to consistently improve the Group’s competitiveness, upgrade
facilities and boost the quality of products and processes.
CEPSA is firmly and steadfastly committed to Corporate Responsibility as a top priority. In
2008, the Company implemented a series of initiatives to maintain the highest standards of
environmental excellence. In the Gibraltar-San Roque Refinery, for example, noteworthy was
the new environmental monitoring, control and reporting plan through the creation of a Local
Citizens’ Committee. On the other hand, CEPSA carried on with its intensive efforts to create
jobs, as evidenced by the 4% year-on-year increase in the Group’s workforce.
Looking at safety, the occupational accident rate fell 5% from 2007’s levels, significantly
exceeding the Company’s targets. Both the La Rabida and Tenerife Refineries, as well as the
Puente Mayorga chemical plant, have achieved the target of “Zero Reportable Accidents” for
365 consecutive days.
Continually striving to be an outstanding corporate citizen and support the communities
where it operates, the Company has been proactively involved in carrying out projects such
as the CEPSA Social Value Prizes, the Open-Door Seminars at its 3 refineries, the CEPSA
University Chair and informational meetings in Peru and Colombia.
CEPSA – Corporate Communications and Institutional Relations Division
relaciones.institucionales@cepsa.com
Tel: (34) 91 337 6356
www.cepsa.com
Madrid, June 25, 2009
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