Repsol: shares rise after launching share buyback
(CercleFinance.com) - Repsol shares rose to their highest levels in nearly one year on Thursday after the Spanish oil company announced a share buyback plan.
The energy group agreed to launch a share buyback program for a maximum of 40.5 million shares, representing approximately 2.6% of its share capital, in order to offset the most recent scrip dividend payment made in January.
Analysts estimate the transaction at around 450 million euros.
The announcement comes as Repsol posted adjusted net income of 600 million euros for 2020, and a fourth-quarter profit of 404 millions euros, easily beating the consensus of 133 million euros, on lower corporate costs and lower tax.
Repsol shares rose by up to 2.5% following the report, their highest level since March 2020, while the broader IBEX fell 0.2%.
The shares have been greatly in demand over the past few weeks, having risen by 17.5% year-to-date, on the back of an improving outlook for cyclical stocks due to recent vaccine announcements.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The energy group agreed to launch a share buyback program for a maximum of 40.5 million shares, representing approximately 2.6% of its share capital, in order to offset the most recent scrip dividend payment made in January.
Analysts estimate the transaction at around 450 million euros.
The announcement comes as Repsol posted adjusted net income of 600 million euros for 2020, and a fourth-quarter profit of 404 millions euros, easily beating the consensus of 133 million euros, on lower corporate costs and lower tax.
Repsol shares rose by up to 2.5% following the report, their highest level since March 2020, while the broader IBEX fell 0.2%.
The shares have been greatly in demand over the past few weeks, having risen by 17.5% year-to-date, on the back of an improving outlook for cyclical stocks due to recent vaccine announcements.
Copyright (c) 2021 CercleFinance.com. All rights reserved.