Spain’s Repsol to pay €10bn in dividends and buybacks
The Spanish firm joins other big oil firms offering record returns to shareholders despite a steep decline in profit from record highs in 2022
22 February 2024 - 12:38
byReuters
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Madrid — Spanish oil company Repsol will hand shareholders up to €10bn via dividends and buybacks to the end of 2027 as it pushes forward with its pivot to renewable energy and biofuels, it said on Thursday, driving its shares up.
The Spanish firm joins other big oil companies offering record returns to shareholders despite a steep decline in profit from record highs in 2022, when oil and gas prices soared following Russia’s invasion of Ukraine.
Repsol, whose market value was €16.7bn at Wednesday's close, pledged to buy back up to €5.4bn in shares through 2027. In addition, shareholders will get €4.6bn in cash dividends.
The company raised the dividend paid from 2023 results by almost 30% to 90 euro cents a share.
The Spanish company has been diversifying into renewables from its traditional oil and gas core business. While adding renewable and biofuel capacity, it still sees an important role in the energy mix for fossil fuels.
“We are convinced that this approach, in which decarbonisation is an attractive opportunity to create value, grow and be profitable, is the most appropriate one for us,” CEO Josu Jon Imaz said.
Repsol plans net investment of between €16bn and €19bn by the plan’s end, depending on market conditions. More than 35% will go to low carbon projects, such as biofuels and renewables, with a big focus on the Iberian peninsula and the US.
Its renewable energy capacity will increase more than three-fold, reaching 9GW to 10GW in 2027 from the current 2.8GW.
It also said that it would prepare its oil exploration and production business for a potential listing in 2026 or 2027.
Repsol's fourth-quarter adjusted profit fell less than expected, as oil and gas prices cooled but oil and gas production outperformed forecasts.
Quarterly adjusted profit was €1.20bn, down from €2.04bn a year earlier, but beating the company-provided average forecast of €1bn.
The Spanish company will also cancel 40-million shares by the end of July. At Wednesday's closing price, the shares are worth 547 million euros.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Spain’s Repsol to pay €10bn in dividends and buybacks
The Spanish firm joins other big oil firms offering record returns to shareholders despite a steep decline in profit from record highs in 2022
Madrid — Spanish oil company Repsol will hand shareholders up to €10bn via dividends and buybacks to the end of 2027 as it pushes forward with its pivot to renewable energy and biofuels, it said on Thursday, driving its shares up.
The Spanish firm joins other big oil companies offering record returns to shareholders despite a steep decline in profit from record highs in 2022, when oil and gas prices soared following Russia’s invasion of Ukraine.
Repsol, whose market value was €16.7bn at Wednesday's close, pledged to buy back up to €5.4bn in shares through 2027. In addition, shareholders will get €4.6bn in cash dividends.
The company raised the dividend paid from 2023 results by almost 30% to 90 euro cents a share.
The Spanish company has been diversifying into renewables from its traditional oil and gas core business. While adding renewable and biofuel capacity, it still sees an important role in the energy mix for fossil fuels.
“We are convinced that this approach, in which decarbonisation is an attractive opportunity to create value, grow and be profitable, is the most appropriate one for us,” CEO Josu Jon Imaz said.
Repsol plans net investment of between €16bn and €19bn by the plan’s end, depending on market conditions. More than 35% will go to low carbon projects, such as biofuels and renewables, with a big focus on the Iberian peninsula and the US.
Its renewable energy capacity will increase more than three-fold, reaching 9GW to 10GW in 2027 from the current 2.8GW.
It also said that it would prepare its oil exploration and production business for a potential listing in 2026 or 2027.
Repsol's fourth-quarter adjusted profit fell less than expected, as oil and gas prices cooled but oil and gas production outperformed forecasts.
Quarterly adjusted profit was €1.20bn, down from €2.04bn a year earlier, but beating the company-provided average forecast of €1bn.
The Spanish company will also cancel 40-million shares by the end of July. At Wednesday's closing price, the shares are worth 547 million euros.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.