'The integrated business model allows us to deal with a highly volatile world', said Pedro Miró, CEO of Cepsa, at ESADE

The energy sector is undergoing a paradigm shift and a period of high volatility. It is showing moderate growth even as it must deal with a transition in the energy mix and the emergence of new technologies. ‘The integrated business model makes us more capable of withstanding market turbulence and allows us to obtain better margins and overall annual profits’, said Pedro Miró, CEO of Cepsa, at the event held this morning at ESADE. With a portfolio of six business areas, the executive noted that his aspiration for the company was ‘to achieve more than 70% integration of the chemical and refining businesses, in terms of commodities, in the next two years’. ‘Whilst the world may have managed to decouple economic growth from energy consumption, it has yet to do so with the consumption of chemicals’, he noted.

‘In the 85 years since it was founded, Cepsa has evolved from a company focused on refining to an integrated global energy company’, explained the CEO. ‘In this period, we have developed a variety of businesses and capabilities that allow us to tackle today’s challenges, including an ambitious strategic growth plan aligned with the aims of our sole shareholder, IPIC.’

Miró also stressed the importance of partnerships ‘in an industry where companies that are not state-owned have not always had an easy time’. ‘To successfully conduct our business, we need to be skilful and tactical in establishing partnerships throughout the value chain’, he explained.

‘Cepsa 2030’ strategic plan

‘In 2016, we launched an exciting project: the “Cepsa 2030” strategic plan, intended to develop the company’s capabilities in line with its long-term goals’, Miró announced. ‘We aim to maintain long-term growth; consolidate the integrated business; remain a benchmark in the refinery industry, as well as efficient upstream operators; continue to lead the chemical commodities market; grow in Latin America; strengthen our partnerships; promote research and development; offer excellent working conditions to our people; and achieve financial strength’, he explained.

With regard to the evolution of prices in the oil market, he noted, ‘We are currently working with a hypothesis based on a recovery in prices to about $70-$80 dollars per barrel in the next five years.’

The event, organized by ESADE Alumni, also featured Pedro Navarro, executive vice-chairman of the ESADE Foundation Board of Trustees, and Patricia Reyes, on behalf of Bluecap.