Repsol Removed From Stoxx 50 After Sinking to Three-Year Low

  • Spanish oil producer to be removed from index as of Sept. 21
  • Plunging oil prices derail Repsol's expansion plans, earnings

Repsol SA, Spain’s largest oil company, will be dropped from the Euro Stoxx 50 Index after plunging to a three-year low this month as declining crude prices sap its earnings and expansion plans.

The producer will be removed from the index on Sept. 21, Stoxx Ltd. said in a statement Monday. The Madrid-based company sank to 12.265 euros on Aug. 24, the lowest close since the same month in 2012. It settled at 12.755 euros Monday, about 31 percent lower than its closing peak in April.

Repsol, which spent about $13 billion acquiring Canadian producer Talisman Energy Inc. last year, is considering asset sales in Venezuela, Alaska, Bolivia and the Gulf of Mexico to lower debt, people familiar with the plan said in July.

The producer’s second-quarter earnings reported July 30, adjusted for one-time items, fell to 312 million euros ($350 million) from 390 million a year earlier, according to data compiled by Bloomberg.

Brent, the benchmark for more than half the world’s crude, is trading at less than half last year’s peak closing price.

Repsol’s market value has tumbled to 17.9 million euros from 29 million at year-end 2011.

RWE AG, Germany’s largest power producer, is also being removed from the index. The two companies were the index’s worst performers over the past three months, according to data compiled by Bloomberg.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE