BofA cuts Repsol and Neste as refining margins drop

Galp Energia SGPS SA

09/01/2026 13:41

** BofA Global Research says that refining margins have fallen from "supernormal peaks," cutting its 2026 forecast by 20% and prompting cuts to its earnings estimates on oil majors

** It notes that refining margins have plummeted by about 45% in the last month, alongside a 5% drop in most major oil company share prices

** It adds that Shell's SHEL.L weak Q4 trading update has kicked off earnings season, signalling potential further consensus downgrades

** BofA cuts Spanish oil and gas company Repsol REP.MC to "underperform" from "neutral," citing rapidly deflating refining margins and expecting its cash return outlook to disappoint, too

** The broker also downgrades Finnish biofuel maker and oil refiner Neste NESTE.HE to "neutral" from "buy," as weaker margins remove upside to 2026 consensus

** It keeps France's TotalEnergies TTEF.PA as its top pick

 (Reporting by Marta Serafinko in Gdansk)

 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))