Repsol YPF

Sensitivity

The Company monitors the exposure to market risk in terms of sensitivities. These are complemented with some other risk measures when the nature of the risk positions so require.

The following describes the sensitivity to the result and the reserves. The estimates shown are representative of the favourable and unfavourable changes, increases and decreases in risk factors of the same amount causing a similar and opposite impact. The analysis of sensitivity uses variations in risk factors representative of its historical behaviour.

a) Exchange rate risk: the funds obtained by Repsol YPF are mainly in dollars either directly or through exchange rate derivatives. Similarly Repsol YPF keeps accounts receivable and payable in different currencies because of its business transactions. At 31 December 2007 and 2006, a 5% increase in the Euro against the dollar would mean that the financial instruments held by the Group at those dates would result in an approximate increase in the net profit of EUR 57 million and EUR 82 million, respectively, and an increase in reserves approximately of EUR 67 million and EUR 75 million, respectively. The exposures to risk of other currencies are not material to the Group.

b) Commodities risk price: at 31 December 2007 and 2006, a 10% increase in the price of crude and oil products should imply, due to the impact on the financial instruments held by the Group at those dates, a decrease in the net profit approximately of EUR 24 million and EUR 21 million, respectively.

c) Interest rate risk: at 31 December 2007 and 2006, an increase of 0.5% in the interest rates of the terms of the financial instruments owned by the Group would result in an increase in net profit of approximately of EUR 22 million in 2007 and a decrease in net profit of EUR 8 million in 2006, as well as an increase in reserves of approximately EUR 12 million and EUR 29 million in 2007 and 2006, respectively.