Last checked at 
* Adjusted net 404 mln euros, unadjusted loss of 711 mln
euros
* Annual net loss narrows to 3.29 bln euros
(Recasts with shares, sector comparison)
By Isla Binnie
MADRID, Feb 18 (Reuters) - Spanish energy group Repsol
posted on Thursday forecast-beating fourth-quarter
adjusted income, pushing its shares up even though write-downs
on the value of oil and gas assets dragged it to a second
consecutive annual net loss.
Curbs on mobility to stop the spread of the coronavirus
sapped energy demand last year and pushed companies including
much larger peer BP into heavy losses, piling extra
pressure on a drive among European oil majors to invest more in
lower-carbon businesses.
But in the fourth quarter, Repsol's adjusted net income of
404 million euros ($486.54 million) far outstripped the 134
million expected by analysts in a poll compiled by the company.
Shares rose about 2.7% in morning trade and stayed among
leading gainers on Madrid's blue-chip Ibex index. This
takes gains so far this year to more than 17%, after the company
lost almost 40% of its market value in 2020.
As well as the better than expected adjusted income, the
share rise was also partly due to a plan to buy back about 2.58%
of the company's shares, said Luis Navia, an analyst at CM
Capital Markets in Madrid.
Without the adjustments and counting the write-downs as part
of a plan to limit carbon emissions, Repsol saw a net loss of
711 million euros in the quarter. Annually, it narrowed its net
loss to 3.29 billion euros compared with 3.82 billion the
previous year.
Oil prices plummeted to as low as $15 per barrel in
April and ended the year 35% lower on average, Repsol noted.
Repsol was an early mover among European energy companies in
pledging to cut planet-warming emissions as investors and
governments call for action on climate change.
It now plans to spin off its low-carbon business and sell a
stake to a partner or on public markets in the next two years.
($1 = 0.8304 euros)
(Reporting by Isla Binnie; editing by Jason Neely and Emelia
Sithole-Matarise)
