Repsol saw its 2013 annual profits nearly wiped out by big write-downs on North American onshore assets and its expropriated majority stake in Argentina unit YPF.
The Spanish oil major took charges of €1.28 billion ($1.76 billion) impairing its YPF stake and €1.10 billion on the onshore positions, according to results divulged Tuesday.
Net income for 2013 was €195 million, down from €2.06 billion in 2012. The company said it would have seen "recurring" net income of €1.823 billion absent the charges.
Revenue also slid compared to the prior year, coming in at €6.23 billion for 2013 compared to €6.95 billion.
The company booked strong gains in exploration progress, however, reporting nine "positive" wells in Alaska, Algeria, Brazil, Colombia, Libya and Russia over the year with reserves replacement of 275%.
Repsol reported hydrocarbons production growth of 4% as projects came online in Brazil, Bolivia and Russia with average net daily production of 346,000 barrels of oil equivalent per day.
The Spanish company did not elaborate on the North America write-downs but also disclosed on Tuesday it had signed a compensation agreement valued at $5 billion for its seized stake in the YPF Argentina unit.
The liquefied natural gas business was a bright area for the company, almost doubling operating profit to €959 million.
The comparable figure in Repsol's upstream unit was down more than 20% to €1.75 billion.
Losses elsewhere were partially offset by a gain of €1.26 billion on the company's sale of LNG plants to Shell in Peru and Trinidad and Tobago.