The company increased its profit due to the rise in oil and increased its dividend to 0.70 euros per share
Repsol posted a net profit of EUR 3,222 million in the first nine months of the year, a figure that is 66% higher than the EUR 1,939 million for the same period last year, as reported by the company, which will accelerate the “roadmap” of its dividend. policy.
The adjusted net result – which measures the performance of the companies – stood at 4,564 million euros at the end of September, almost threefold compared to a year ago. Nearly 60% came from international business, the main exponent of which is the ‘Upstream’ area (exploration and production), which achieved a result of 2,431 million euros in the period driven by hydrocarbon prices.
The third quarter results come in the midst of processing the new tax on energy companies and banks that the government is processing and against which Repsol has shown itself. The company has recalled in its income statement that during the first nine months of the year it paid a tax contribution of more than 11,800 million euros in the countries where it is present, more than 70% of which was paid in Spain.
In addition, it has emphasized that this path of recovery makes it possible to “partially offset the losses of the financial years 2019 and 2020 of more than 7,100 million euros”, derived from the asset adjustments to make net emissions zero and from the impact of the pandemic.
Repsol CEO Josu Jon Imaz emphasized that the group has “taken important steps to promote its transformation, its multi-energy and low-carbon profile”, highlighting in this regard the alliances with strategic partners that have developed for its companies in recent months. are closed. ‘Upstream’ and renewable energy sources as ‘fundamental’ to continue to make progress in its objectives and promote key areas.
With these results, the group will increase the cash consideration to be paid to shareholders in January next year to EUR 0.35 gross per share, while the board of directors will make an additional payment to its annual general meeting of shareholders next year of EUR 0.35 gross per share. will propose another EUR 0.35 gross per share.
For example, in 2023 Repsol’s effective compensation to its shareholders will increase by 11% to EUR 0.70 gross per share -compared to EUR 0.63 this year-, furthering the expected remuneration target in its strategic plan for the year. 2024.
On top of that, share buybacks are another way to reward shareholders. In this sense, the group will anticipate its target of share repurchases and amortization in three years, aiming to reach the 200 million amortized shares committed for the full 2021-2025 period by the end of this year. To this end, the energy company is launching a new buyback program that will allow it to buy back the 50 million shares that remain to achieve this multi-year target.
Similarly, the strong operating cash flow of the company has enabled Repsol to achieve a significant reduction in net debt, which closed at EUR 2,181 million in September, representing a decrease of EUR 3,581 million compared to the amount reported at the beginning of the current year. exercise was recorded. .
Investments, mainly focused on the Iberian Peninsula, increased by 47% in the first nine months of the year compared to the same period in 2021 to 2,397 million euros.
The industrial company, where the energy company has invested an average of about 1,000 million euros a year in refining since 2008, while refining capacity was reduced in Europe, posted a profit of 2,031 million euros over the period, driven by refining margins that, despite their high volatility, they recorded average values far above those of previous years.
However, despite the current positive moment in the refining business, Repsol has decided to include impairment provisions in the book value of its refineries, whose long-term profitability and competitiveness would be affected if aspects such as the uncertainty of the business environment were not addressed. corrected and regulatory and fiscal pressures in Europe. These provisions represent the bulk of the specific results for the period January-September, which amounted to -2,086 million euros.
In addition, given the price tension resulting from the international scenario, the company has maintained discounts on fuel since last March, with more than EUR 300 million in savings for its customers. This decision explains the drop to 373 million euros in the result of the Commercial and Renewables zone.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
