Repsol announces dividend hike (30% to €0.9/share) despite 25% drop in 2023 profit to €3.168 billion

Repsol Strategic Plan

The company increases the cash dividend by approximately 30% in 2024, to €0.9 per share (€1.095 billion in total) and commits to increasing it by 3% annually. With this, Repsol will distribute €4.6 billion in cash in the 2024-2027 period.

This remuneration will be complemented with share buybacks of up to €5.4 billion, in the expected price environment, thus allocating up to €10 billion to remunerate shareholders over the next four years.

In line with this strategy, the Board of Directors yesterday approved a new share buyback program of 35 million shares, with the aim of redeeming 40 million before the end of July 2024.

The increase in remuneration to more than 520,000 shareholders and of investments through to 2027 will be underpinned by a solid operating cash flow, which will amount to €29 billion euros over the four-year period, and the company’s low level of debt, which stood at €2.096 billion euros at the end of 2023 (6.7% of capital employed).

Repsol will post net investment of between €16 and €19 billion over four years and will allocate more than 35% to low-carbon initiatives. The Iberian Peninsula will account for 60% of total investments and the United States for 25%.

2023 Earnings: net income was €3.168 billion (-25.5%). The adjusted result was €5.011 billion (-26%), in an uncertain and volatile macroeconomic environment.

Josu Jon Imaz, Repsol CEO says: “Over the next four years we will stay the course on the strategy we presented in our previous plan to address the energy transition and we will focus on all the types of energy that meet our customer’s needs. We are convinced that this approach, in which decarbonization is an attractive opportunity to create value, grow and be profitable, is the most appropriate one for us..”

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.