REPSOL S.A. 1Q24 Results
25 April 2024
Josu Jon Imaz
CEO
Disclaimer
ALL RIGHTS ARE RESERVED ©REPSOL,S.A. 2024
This document contains information and statements that constitute forward-looking statements about Repsol. Such estimates or projections may include statements about current plans, objectives and expectations, including statements regarding trends affecting Repsol's financial condition, financial ratios, operating results, business, strategy, geographic concentration, production volumes and reserves, capital expenditures, cost savings, investments and dividend policies. Such estimates or projections may also include assumptions about future economic or other conditions, such as future crude oil or other prices, refining or marketing margins and exchange rates. Forward-looking statements are generally identified by the use of terms such as "expects," "anticipates," "forecasts," "believes," "estimates," "appreciates" and similar expressions. Such statements are not guarantees of future performance, prices, margins, exchange rates or any other event, and are subject to significant risks, uncertainties, changes and other factors that may be beyond Repsol's control or may be difficult to predict. Such risks and uncertainties include those factors and circumstances identified in the communications and documents filed by Repsol and its subsidiaries with the Comisión Nacional del Mercado de Valores in Spain and with the other supervisory authorities of the markets in which the securities issued by Repsol and/or its subsidiaries are traded. Except to the extent required by applicable law, Repsol assumes no obligation - even when new information is published, or new facts are produced - to publicly report the updating or revision of these forward-looking statements.
This document mentions resources which do not constitute proved reserves and will be recognized as such when they comply with the formal conditions required by the system "SPE/WPC/AAPG/SPEE Petroleum Resources Management System" (SPE-PRMS) (SPE - Society of Pretroleum Engineers).
Some of the financial figures presented throughout this document are considered Alternative Performance Measures (APM), in accordance with the ESMA (European Securities Market Association) Guidelines "Alternative Performance Measures", for more information see Repsol's website.
This document does not constitute an offer or invitation to purchase or subscribe securities, pursuant to the provisions of the Spanish Law 6/2023, of March 17, of the Securities Markets and Investment Services and its implementing regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.
The information contained in the document has not been verified or revised by the Auditors of Repsol.
Repsol 1Q24 | 2 |
Agenda
01. Key messages
- Divisional performance
- Financial results
- Outlook
Repsol 1Q24 | 3 |
Strategic Update 2024-2027
New capital allocation framework prioritizes shareholder pay-outs
25% - 35% CFFO distributions
Enhanced and committed shareholder distributions
• | Dividends + SBB: 25 - 35% CFFO | • | Total dividend growth: +3% p.a. (DPS growth: 3% + change |
• | 2024 DPS: 0.9 €/share (~+30% vs 2023) | in shares outstanding) | |
• | Up to €5.4 B SBB program in '24-'27 | ||
Capital
Allocation
Maintain current rating | targets | Net capex 24-27: €16 - 19 B |
Strong balance sheet | Disciplined & transformational investment | |
• Maintain current BBB+/ Baa1 credit rating | • Strict capital discipline framework | |
• Attractive project pipeline across the value | ||
chain | ||
• ~35% Low Carbon net Capex |
Repsol 1Q24 | 4 |
Key messages 1Q24
Strong results and progressing on portfolio transformation
€1.3 B
Adjusted Income
+6% vs 4Q23 -33% vs 1Q23
€1.4 B
CFFO
-40% vs 4Q23 -27% vs 1Q23
Robust quarterly results
- Supportive oil price and robust refining margins
- €0.9 B working capital build-up to be reverted during the year
- Net Debt impacted by ConnectGen acquisition, working capital, dividend payment and new leases
-
1Q24 investment level aligned toward delivering a net capex of €5 B in
2024
Progress on low carbon business platforms
€3.9 B
Net Debt
vs €2.1 B Dec'23
11.5%
Gearing
+4.8 p.p. vs Dec'23
- Lipidic route: JV with Bunge Iberia (40%)
- Biomethane route: acquisition of 40% of Genia Bionergy
- US Renewables: incorporating ConnectGen portfolio and delivering US project pipeline
Delivering on shareholder remuneration commitments
- 35 M shares buyback program to cancel 40 M shares before end July
- 2024 dividend increased to 0.9 €/share (~+30% vs 2023)
- 30-35%of CFFO distribution commitment in 2024 (dividend and
buybacks) | Repsol 1Q24 | 5 |
Market Environment
Supportive oil price and refining margins. Weaker gas prices
Brent | Henry Hub | ||||||
($/bbl) | ($/Mbtu) | ||||||
81 | 78 | 87 | 84 | 83 | 3.4 | 2.9 | |
2.5 |
2.1 | 2.3 |
1Q23 2Q23 3Q23 4Q23 1Q241Q23 2Q23 3Q23 4Q23 1Q24
Repsol's Refining Margin Indicator | Exchange Rate | ||||||||
($/bbl) | ($/€) | ||||||||
15.6 | 1.07 | 1.09 | 1.09 | 1.08 | 1.09 | ||||
13.6 | |||||||||
11.4 | |||||||||
9.0 | |||||||||
6.4 | |||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Note: all figures are averages | Repsol 1Q24 | 6 |
€442 M
Adjusted Income
-7% vs 1Q23
202 Kboed
Liquids production
388 Kboed
Gas production
Upstream
Focus on efficient project delivery. Limiting exposure to US gas
Production impacted by divestments | |||
Production | • Sale of Canadian assets in 4Q23 and lower w.i. in | ||
Corridor PSC (Indonesia) | |||
Kboed | |||
608 | 595 | 590 | • Full consolidation of UK business and contribution of |
new wells in Marcellus |
Mitigating exposure to Henry Hub
- Current rig in Marcellus to be released in June
- Hedged ~40% of 2024-2026 gas volumes in North America
1Q23 4Q23 1Q24
Development of growth projects
- Alaska: approaching 50% of the development scope to reach first oil in Pikka
- Mexico: agreement to secure offshore production facility
Repsol 1Q24 | 7 |
Industrial
Robust refining margins and modest recovery in Chemicals
€731 M
Adjusted Income
-43% vs 1Q23
11 Mtons
Processed crude
Refining
- Margins supported by strong gasoline and naphtha differentials
- Multi-annualturnaround of Puertollano
- 89% utilization of distillation capacity and
99% run-rate of conversion units
Chemicals
- Improving demand vs. 4Q23
- Margins recovery from historical lows in 2H23 due to stronger intermediate products and lower energy costs
462 Ktons
Petrochemicals sales
International prices | Repsol's Chemical Margin Indicator | |||||||||||||||
($/bbl) | (€/t) | |||||||||||||||
205 | ||||||||||||||||
33.5 | 199 | 165 | ||||||||||||||
27.1 | 29.4 | |||||||||||||||
20.7 | ||||||||||||||||
1Q23 | 4Q23 | 1Q24 | ||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | ||||||||||||
Gasoline vs Brent spread | Diesel vs Brent spread | |||||||||||||||
Repsol 1Q24 | 8 |
Industrial
Progress in the transformation of Repsol's industrial sites
Starting advanced biofuels plant
- C-43project (Cartagena) reached large-scale production in April
- >€200M investment. Capacity to produce 250 Ktons/y of renewable fuels (HVO or SAF)
Partnership with Bunge in Iberia
- Acquisition of 40% in three industrial facilities operated by Bunge
- Ensures necessary feedstock and technology for plans in renewable fuels
- Supports transition from 1G vegetable oils to other lipidic feedstocks
New renewable gas platform
- Acquisition of 40% of Genia Bionergy
- Integrates entire biogas and biomethane value chain in Spain
- Emerging industry considered strategic by EU
Repsol 1Q24 | 9 |
Customer
Resilience of commercial businesses. Increasing scale in Retail Power & Gas
€156 M
Adjusted Income
-10% vs 1Q23
3,245 Km3
Service Stations and Direct sales in Spain
Mobility
- Sales in Service Stations and Wholesales in Spain impacted by less favourable market
- Contribution of multi-energy strategy built around Waylet app
Retail P&G
- Solid EBITDA contribution despite lower demand in Spain YoY
- Increasing client base to 2.3 M customers (+3% vs. Dec23)
1,567 GWh
Electricity
Commercialization
Number of digital customers | Electricity Commercialization* | |||
(M) | (GWh) | |||
7.9 | 8.3 | 1,567 | ||
1,229 | ||||
1,064 | ||||
Dec 2023 | Mar 2024 | 1Q23 | 4Q23 | 1Q24 |
*Estimated. Data for Spain |
Repsol 1Q24 | 10 |
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Repsol SA published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 11:54:50 UTC.
