Repsol Will Pay A Dividend Of 1€ In 2020

Repsol will use the "scrip dividend" formula to pay its shareholders remunerationRepsol will use the "scrip dividend" formula to pay its shareholders remuneration

Repsol´s new strategic plan until 2020 envisages dedicating 2.5 billion euros to drive the growth in energy businesses with low carbon emissions. This will consolidate its long term position in the retail of gas and electricity, as well as the generation of electricity.

In particular, although the implementation of its road map lasts only until 2020, the group directed by Josu Jon Imaz is looking beyond and predicts that with this investment, by 2025 it will reach 2.5 million retail clients of gas and electricity in Spain, with a market share above 5% and a capacity for low emission generation of 4,500 megawatts (MW).

Repsol has set this road map for the energy transition in which it contemplates ambitious objectives for its participation in the market based on the development of gas and low emission generation. It calculates that it will secure 15% of wholesale gas market in 2025.

Of the investment of 15 billion euros over this period, 53%, some 7.9 billion euros, will be dedicated to upstream (exploration and production) and the remaining 45%, more than 7 billion euros, to its downstream business (refining, chemicals and marketing) and low emission assets.

As far as dividend policy, the group reaffirms its commitment to continue increasing the remuneration for shareholders, reaching 1 euro per share in 2020. It will use the “scrip dividend” formula, combined with a programme of share buy back which will avoid dilution by those who choose to be paid in cash.

As a roadmap in shareholder remuneration, the group forsees an average annualised increase of 8%, up to 0.95 euros a share in 2019 and recovering the level of one euro in 2020, which the oil company had to revise in 2016 because of the purchase of the Canadian company Talisman and the low crude oil prices.

The group foresees that the strategic plan 2018-2020 will be self-financing at 50 dollars a barrel for Brent crude. This is a fairly conservative scenario, with a barrel of crude currently over 75 dollars, and a price at which the company can also guarantee the maintenence of a high level of financial flexibility and a level of debt well below the average of the sector.