Repsol soars on the inventory market after recording the third largest revenue in its historical past with out extraordinary gadgets | Companies | EUROtoday

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Repsol
Repsol brand, at a fuel station.VIOLETA SANTOS MOURA (REUTERS)

The largest Spanish oil firm, Repsol, recorded a revenue of three,168 million euros in 2023. Despite the 25.5% drop in comparison with the historic 2022, during which it broke all obstacles, final 12 months was the third better of its historical past with out extraordinary occasions, after the aforementioned 2022 (4,251 million) and 2007 (3,188, with crude oil very near historic highs). In 2010, the oil firm chaired by Antonio Brufau earned 4,693 million, however largely from the sale of its Brazilian subsidiary to Sinopec.

“2023 has been an extraordinary year,” emphasizes the CEO of Repsol, Josu Jon Imaz, in a observe despatched early this Thursday morning to the National Securities Market Commission (CNMV). “We have achieved the second highest cash flow from operations in our history amid an uncertain and volatile environment.” The outcomes and the promise of a better dividend within the coming years – in each circumstances, enhancing market expectations – have despatched its shares up virtually 6% within the early levels of buying and selling this Thursday. Two hours later, the rise was round 4%.

Despite the drop within the value of oil and refining margins, Repsol's adjusted revenue stood at 5,011 million (-26%) final 12 months, in line with figures revealed this Thursday. The industrial enterprise – a heading below which the refineries are included – was as soon as once more probably the most worthwhile 12 months for the Spanish power firm, with an adjusted revenue of two,734 million, virtually 16% lower than a 12 months earlier than. “The margins [de refino] were boosted in 2023 by strong demand, low inventories and high differentials between products. A positive environment that continues in 2024″, recognizes the company.

With crude oil averaging 83 dollars, compared to 101 in 2022, exploration and production contributed another 1,779 million, 41% less. Customer – which includes, among others, service stations – added 614 million, almost 46% more. And low-carbon generation, 75, just over half that of a year before, largely due to the lower contribution of its combined cycle plants, in which gas is burned to produce electricity.

The strong cash generation also allowed Repsol to reduce net debt by 7% last year, to 2,096 million, the lowest figure in a long time. The leverage ratio closed 2023 at 6.7%, compared to 8% twelve months earlier. Liquidity, for its part, amounted to 11,067 million euros.

The Spanish energy company has also announced this Thursday – in a second note sent to the regulator – a cash dividend of 0.9 euros per share in 2023, almost a third more. This direct remuneration to its shareholders will be complemented by the repurchase and subsequent amortization of 35 and 40 million of its own securities, respectively.

Inverter impulse… conditional

Repsol invested 6,167 million euros last year, the largest figure in its entire history. Of that amount, 43% went to the Iberian Peninsula—despite the continuous tug-of-war with the Spanish Government, especially as a result of the extraordinary tax on the sector—and 30% went to renewable generation. For the period 2024-2027, the energy company plans to invest between 16,000 and 19,000 million.

A figure, however, conditional on the “macroeconomic, fiscal and regulatory scenario”, especially in the case of its refineries in Spain. In November of last year, Brufau threatened the Government with taking investments of more than 1.5 billion euros to Portugal or France if it did not change its tax policy. This Thursday, Imaz has been noticeably more optimistic: “Things have changed somewhat and I have a more positive vision than a few weeks ago,” he said in conversation with analysts, after the presentation of results. “If we have confirmation of that turn and a predictable framework, we are ready to invest. “We are going to attempt to do every part potential to do it in Spain if the situations are met.”

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https://cincodias.elpais.com/companias/2024-02-22/repsol-gano-3168-millones-en-2023-el-tercer-mayor-beneficio-de-su-historia-sin-extraordinarios.html