Repsol: E10bn to be returned to shareholders

(CercleFinance.com) - 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.


Repsol posted Q4 adjusted profit of E1.2bn, compared with E1.1bn in Q4 2022 and above the consensus of E1bn.

Above all, Repsol stated its intention to return E10bn in cash to shareholders by 2027 as part of its new strategic plan.

When presenting its 2024-2027 plan, Repsol explained that it plans to distribute E4.6bn in dividends over the period, in addition to E5.4bn in share buybacks.

With this new plan, the company intends to invest between E16bn and E19bn 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 11am, while the index of European oil stocks advanced by just 0.6%.

We are encouraged by this business update, analysts at Royal Bank of Canada said.

Repsol appears to be focusing on attractive levels of redistribution to its shareholders, while pragmatically managing the transition of its activities, they added.

The share price has risen by over 7% YTD, compared with a loss of around 3% for the sector index.


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