(Repsol, 22.Feb.2024) — “Over the next four years we will stay the course on the strategy we presented in our previous plan to address the energy transition and we will focus on all the types of energy that meet our customer’s needs. We are convinced that this approach, in which decarbonization is an attractive opportunity to create value, grow and be profitable, is the most appropriate one for us,” Repsol CEO Josu Jon Imaz said 22 Feb. 2024.
Highlights:
- Repsol’s 2024-2027 Strategic Update builds on its profitable energy transition model, prioritizing investments in the current integrated portfolio of quality assets and low-carbon initiatives, attractive shareholder remuneration and maintaining financial strength.
- The company increases the cash dividend by approximately 30% in 2024, to 0.9 euros per share (1.095 billion euros in total) and commits to increasing it by 3% annually. With this, Repsol will distribute 4.6bn euros in cash in the 2024-2027 period.
- This remuneration will be complemented with share buybacks of up to 5.4bn euros, in the expected price environment, thus allocating up to 10bn euros to remunerate shareholders over the next four years. This target is equivalent to distributing between 25% and 35% of cash flow from operations.
- In line with this strategy, the Board of Directors yesterday approved a new share buyback program of 35mn shares, with the aim to redeem 40mn before the end of Jul. 2024.
- The increase in remuneration to more than 520,000 shareholders and of investments through to 2027 will be underpinned by a solid operating cash flow, which will amount to 29bn euros over the four-year period, and the company’s low level of debt, which stood at 2.096bn euros at the end of 2023 (6.7% of capital employed).
- Repsol will post net investment of between 16bn and 19bn euros over four years and will allocate more than 35% to low-carbon initiatives. The Iberian Peninsula will account for 60% of total investments and the United States for 25%.
- Industrial assets: net investments of between 5.5bn and 6.8bn euros to keep the facilities among the most advanced in the world and develop low-carbon initiatives, subject to the evolution of the regulatory and fiscal framework in Spain.
- Upstream: the company will launch new projects in areas where it has competitive advantages, prioritizing cash generation – reaching 6bn euros in the period, under the current price scenario – and reducing the carbon footprint of its production.
- Customer Business: Repsol, as a multi-energy company, plans to nearly double its electricity and gas customer base to 4mn by 2027, and will continue to drive its Waylet app, which will exceed 10mn users.
- Low-Carbon Generation: net investments of between 3bn and 4bn euros to develop the project portfolio and reach between 9,000 MW and 10,000 MW of installed capacity by 2027.
- 2023 Earnings: net income was 3.168bn euros (-25.5%). The adjusted result was 5.011bn euros (-26%), in an uncertain and volatile macroeconomic environment.
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