There was some good news for Spanish energy group Repsol as its quarterly profit came in better than expected.
That eased concerns about its ability to fund development projects after the Buenos Aires government seized its majority stake in its Argentinian subsidiary YPF.
Repsol’s 635 million euro profit was helped by high oil prices, the recovery of production in Libya and strong demand for liquefied natural gas in Asia.
Profit was down three percent on the 2011 period because of weak refining margins and lower sales of chemicals.
YPF accounted for half of Repsol group output and 21 percent of net profit, and its loss has led to fears the Spanish group might struggle to fund costly projects in Brazil, West Africa and elsewhere, and that it might have to cut its dividend.
However the latest figures show that for the last full period when it will contribute to Repsol’s performance, YPF was a drag on earnings.