The company increases its results by 70% thanks to a turnover of almost 79,000 million
Repsol has achieved a net profit of EUR 4,251 million in 2022, an increase of 70% compared to the previous year. It did so in a year marked by the surge in commodities such as oil, which reached $130 a barrel of Brent amid tensions over the war in Ukraine. Although the company believes that its integrated business model and the Strategic Plan 2021-2025 are the “fundamental” milestones to achieve positive performance.
Despite the fact that the result has skyrocketed, the profits made in 2021 and 2022 (6,750 million euros) cannot yet make up for the losses of 2019 and 2020 (7,105 million euros).
In this sense, Repsol’s CEO, Josu Jon Imaz, believes that “energy prices are rising because demand is rising, while, contrary to what logic would dictate, difficulties are imposed on the production of some energy products. The high prices are not ‘fallen from heaven’, they are the result of the wrong decisions made in Europe.” For this reason, it urges that “consider an advantage obtained from a major investment effort as extraordinary and penalize it against those who import products from other continents without creating a single industrial job, in addition to being unfair, incomprehensible and harmful to the Spanish economy”.
The group recalls that it has allocated more than 500 million euros in 2022 for additional discounts on fuel at its petrol stations in Spain. Likewise, in 2022, it made “an extra effort” to ensure supplies in Spain, in a context of tension in international markets, allocating more than 2,000 million euros to increase its stocks.
The company plans to allocate a historic organic investment of more than €5,000 million this year to bolster its multi-energy profile. 35% of these investments will be allocated to low-carbon projects, which the group says reinforces their transformative nature.
In 2022, Repsol invested 4,182 million euros to advance its transformation, 40% more than the previous year, mainly in the Iberian Peninsula and the United States. Specifically, the company invested 1,400 million euros in Spain during the year.
Likewise, the situation of its industrial activities, the result of European regulation, has led the company to make new adjustments for impairments on the book value of its assets, mainly its refineries, whose long-term profitability and competitiveness would be affected if not they correct aspects that are straining the industry in Europe, such as the insecurity of the business environment and regulatory and fiscal pressures. These provisions represent the bulk of the specific results of the period, which amounted to EUR 2,485 million.
Improve the dividend
In addition, in 2023, Repsol announced an 11% increase in cash consideration for its shareholders and executed the redemption of 200 million shares, benefiting more than 520,000 investors, the vast majority of whom are minorities and are in Spain established. .
In concrete terms, the cash remuneration will increase by 11% in 2023 to EUR 0.70 gross per share, bringing forward the target of the Strategic Plan for 2024.
To this end, the cash distribution paid to shareholders last January has been increased to EUR 0.35 gross per share, to which an additional remuneration of a further EUR 0.35 gross per share will be paid this year after approval by the Annual General Meeting of Shareholders. being added.
In addition, Repsol has brought forward its share repurchase and repurchase target by three years, to 200 million shares repurchased by the end of 2022, an amount originally planned for the entire 2021-2025 period. By 2023, Repsol will implement a new share buyback program and a capital reduction.
For example, the Board of Directors has agreed to introduce a new share buyback program for up to 35 million shares in 2023 and to propose to the next General Meeting a capital reduction through the buyback of 50 million own shares.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
