FIRST QUARTER 2011 MAIN HIGHLIGHTS AND KEY FINANCIAL FIGURES

CCS adjusted net income in the quarter, at 654 M€, was 28.7% higher than in the same quarter a year earlier and 31.1% higher than in the last quarter of 2010.

CCS adjusted operating income in the quarter increased 10.9% in comparison with the same year-ago quarter mainly driven by higher oil and gas prices, the enhanced performance of the LNG division, and the recovery of the chemical business, despite diminished production.

Production in the quarter was 324 Kboepd, 7.4% less than in the same period in 2010. This drop, affecting mainly liquids, is explained by the suspension of operations in Libya since 5 March and lower production at the Shenzi field in the United States due to the moratorium. Diminished gas production in Trinidad & Tobago was caused by increased maintenance activity. For the rest of the year, excluding the PSC effect and Libya, production is expected to be similar or even a slightly higher than in this quarter.

The Group's net financial debt, excluding Gas Natural Fenosa amounted to 2,180 M€ at the end of first quarter 2011, 483 M€ more than at year-end 2010. Taking preference shares into account, the debt figure is practically the same as the one at year-end 2010. The EBITDA (ex GN) generated, 24% higher than in the previous quarter, made it possible to cover the cash outflows relating to the Company's recurrent activities (investments, tax obligations, interest payments, and the REPSOL YPF dividend paid in January 2011). Also worth mentioning as a relevant transaction is the divestment of an 11.6% stake in YPF, most of which was executed in March, that enabled the early redemption of U.S. preference shares and practically the entire increase in working capital. The net debt/capital employed ratio in first quarter 2011, ex Gas Natural Fenosa, stood at 6.9%. This ratio, taking preference shares into account, was 16.4%.

After the closing date of first quarter, the Petersen Group decided on 3 May 2011 to exercise their call option for an additional 10% of YPF, S.A. share capital, nearly one year before the deadline for making this decision. The Petersen Group will pay USD 1,304 million bringing its total stake in the YPF to 25.46%.

The Repsol YPF, S.A. Annual General Meeting, convened in April, approved a dividend of 1.05 Euros per share charged to 2010 results, 23.53% higher than in 2009.