Repsol: ten billion euros to be returned to shareholders
February 22, 2024 at 05:20 am EST
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On Thursday, Repsol announced a better-than-expected quarterly profit, thanks to the dynamism of its upstream activities and a lower-than-expected tax rate.
In the fourth quarter, Repsol posted an adjusted profit of 1.2 billion euros, compared with 1.1 billion in the same period of 2022 and a consensus of one billion euros.
Above all, Repsol stated its intention to return ten billion euros in cash to shareholders by 2027 as part of its new strategic plan.
When presenting its 2024-2027 plan, Repsol explained that it planned to distribute 4.6 billion euros in dividends over the period, in addition to a 5.4 billion share buyback program.
With this new plan, the company intends to invest between 16 and 19 billion euros over four years, more than 35% of which will be earmarked for its least carbon-intensive activities.
Investors seemed to welcome these announcements, with the Repsol share gaining more than 4% by 11:00 a.m., while the index of European oil stocks advanced by just 0.6%.
We are encouraged by this business update", commented analysts at Royal Bank of Canada this morning.
"Repsol appears to be focusing on attractive levels of redistribution to its shareholders, while pragmatically managing the transition of its activities", added RBC.
The share price has risen by over 7% since the start of the year, compared with a loss of around 3% for the sector index.
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Repsol S.A. is one of the largest oil and gas groups in Spain. The activity is organized into four sectors:
- refining and distribution (No. 1 in Spain): 42.1 million tons of crude oil refined in 2022 and 25.5 million tons of oil products sold (kerosene, gasoline, fuel oil, gas liquefied petroleum gas, etc.). At the end of 2022, the group operated 6 refineries located in Spain (5) and Peru and a network of 4,651 service stations located in Spain (3,304), Peru (567), Portugal (515) and Mexico (265). Repsol S.A. also sells lubricants, aviation fuels, bitumen and specialty products (7,261 Kt sold in 2022), liquefied petroleum gas (1,207 Kt sold) and petrochemicals (2.5 Mt of products sold);
- production of electricity and distribution of natural gas: 8,734 Gwh of electricity generated from renewables energy and 1,650 Gwh of gas sold in 2022;
- liquefaction, transportation and regasification of natural gas;
- exploration and production of oil and natural gas: 550,000 barrels of hydrocarbons produced per day in 2022.
Net sales are distributed geographically as follows: Spain (57.9%), Peru (7.2%), the United States (5.7%), Portugal (4.6%), and other (24.6%).
REPSOL S.A. 
