Unlike other European competitors which are drastically cutting back on spending and investments in the face of lower energy prices, Repsol last year announced the acquisition of Talisman Energy to grow its exploration and production arm.
Average recurring net profit, adjusted for one-time gains and inventory effects, for the whole of 2014 came in at 1.707 billion euros ($1.9 billion) against a 1.695 billion euro forecast in a Reuters poll of analysts.
For the fourth quarter alone, adjusted clean net profit was 370 million euros, three times what Repsol made in the October-December period a year earlier.
Output was up 2.5 percent in 2014 to 355,000 barrels per day, although production revenue fell 40 percent on cheap oil prices, while refining margins rose 24 percent to $4.1/barrel, pushing revenue up 111 percent in this area, also helped by Spaniards using their cars more amid an economic recovery.
Repsol, which struggled for more than two years to fill a gap left by the seizure of its Argentine business YPF, was also helped by its 30 percent stake in Spain's Gas Natural, which contributed 441 million euros to earnings.