Spanish fuel company Repsol will hand shareholders up to €10 billion via dividends and buybacks in the next three years.
The Spanish firm joins other big oil companies offering record returns to shareholders despite a steep decline in profit from record levels in 2022, when oil and gas prices soared following Russia's invasion of Ukraine.
Repsol, whose market value was €16.7 billion at Wednesday's close, pledged to buy back up to €5.4 billion in shares through 2027. In addition, shareholders will get 4.6 billion euros in cash dividends.
The company raised the dividend paid from 2023 results by almost 30% to €0.90 a share.
Adjusted Profit Decline
Repsol's fourth-quarter adjusted profit fell less than expected, as oil and gas prices cooled but oil and gas production outperformed forecasts.
Quarterly adjusted profit was €1.20 billion, down from €2.04 billion a year earlier, but beating the company-provided average forecast of €1 billion.
The Spanish firm will also cancel 40 million shares by the end of July. At Wednesday's closing price, the shares are worth €547 million.
'Stay The Course'
Repsol said that its 2024 to 2027 strategic update 'builds on its profitable energy transition model, prioritising investments in the current integrated portfolio of quality assets and low-carbon initiatives, attractive shareholder remuneration and maintaining financial strength'.
"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," commented Josu Jon Imaz, Repsol CEO.
"We are convinced that this approach, in which decarbonisation is an attractive opportunity to create value, grow and be profitable, is the most appropriate one for us."
Additional reporting by ESM
