Repsol YPF SA (REP), the Spanish oil producer with 16 percent of its business in Argentina, rose the most in four months in Madrid after an Argentine official said the government doesn’t plan to nationalize its local unit.
Repsol jumped as much as 6.2 percent, the biggest intraday gain since Nov. 8, and traded up 4.4 percent at 20.115 euros as of 1:49 p.m. local time.
Argentina isn’t seeking to nationalize Repsol’s YPF SA, the country’s biggest energy company, Cabinet Chief Juan Manuel Abal Medina said yesterday in an interview on Radio Continental. His comments eased weeks of speculation that the government may take over YPF in a dispute over oil output. Abal later said no action had been ruled out, according to state-run news agency Telam.
YPF said this week it may cut dividends after three Argentine provinces revoked its licenses and the government said it should boost investment in production. The company had announced Feb. 9 an increase in shale-oil resources at its Vaca Muerta formations in southern Argentina to as much as 23 billion barrels from previous forecasts of about 927 million barrels.
The government said that month it would take the “most vigorous measures” against YPF if it fails to meet domestic fuel demand.
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