Spain oil and gas group Repsol posted on Thursday a sharp drop in net profit in the first half of the year, as energy prices fell and the company stepped up investments in low-carbon projects.
The company said its net profit reached 1.42 billion euros ($1.6 billion) in the first six months of 2023, down 44 percent from the same period last year.
In the second quarter, the figure fell 73 percent to 308 million euros, more than half what had been forecast by analysts surveyed by financial data firm FactSet.
British oil major Shell and France's TotalEnergies also posted drops in profits on Thursday, a day after similar results reported by Norwegian state-owned energy company Equinor.
Repsol cited "falling energy prices and demand" and the company's "decisive steps in its transformation and in launching an innovative multi-energy offer for its customers".
Repsol announced at the end of 2020 that it would invest 18.3 billion euros by 2025 to achieve zero net emissions by 2050 by focusing on renewable energy and green hydrogen.
Repsol said Thursday that it invested three billion euros, mainly in Spain and the United States, between January and June.
The company said it would allocate 35 percent of its investments to low-carbon projects in 2023.
Repsol said its initiatives include producing renewable fuels from alternative raw materials such as vegetable oils, used cooking oils and biomass.
"We are consistently delivering strong earnings in challenging environments as we continue to transform the company and build a unique multi-energy offering that facilitates a just transition for our customers," said chief executive Josu Jon Imaz.
Spain's left-wing government has imposed a windfall tax on the profits of energy groups following the rise in oil and gas prices, with the state expected to add two billion euros to its coffers this year and similar amount in 2024.
Oil and gas prices soared after major energy producer Russia invaded Ukraine last year, but they have since fallen sharply.