Spanish Repsol is sitting on €10bn

In a few weeks time, Repsol’s head Antonio Brufau has presented relevant and succesful figures regarding the company: some quarterly results beating estimations; the bonds selling monetization at a low discount; the sale of YPF, the firm’s rating upgrade, the payment of a relevant extraordinary dividend; the green light to start oil prospections in the Canary islands, and the designation of Josu Jon Imaz as a new CEO.

The distribution of a €1 per share dividend is not to jeopardize the group’s investment capacity given that 23.6% of the bonds selling monetization and the sale of YPF will go to this budget line. However, many analysts were surprised at the decision since the energy company has always prioritized organic growth and corporate movements.

Market watchers see it as an anticipation of Mr Brufau’s retirement, who was severily criticized in last two years -since the moment he “lost” YPF’s stake- by different spheres inside Repsol as well as outside. Today’s Repsol’s cashflow overfloods. Estimations including available liquidity and cashflow coming from operations linked to Argentinian assets point to near €10 bn, and consequently the sale of the firm’s Gas Natural’s stake may be postponed.

The agreement with Argentina over 51% of YPF’s expropriation has been loudly praised. Repsol has pocketed €5.3 bn for the operation, but it is worth to remind that the Spanish company valued 100% of YPF at no less than €13.8 bn, while that 51% at €7.07 in the right moment it was expropriated.