Saturday, August 13

Repsol increases its cash dividend by 5% after the oil surge

Repsol will increase its cash dividend by 5 percent, to 0.63 euros per share and will launch a buyback program for 75 million shares, representing 2.29 percent of its share capital.

The rise in oil prices, which is trading at 83 dollars, boosted the profits of the oil company, which reported profits until September of 1,939 million euros, compared to losses of 2,578 million registered a year earlier.

As explained by, the good moment of oil opened the door to an increase in the dividend, which has just been confirmed.

With this increase in shareholder remuneration, Repsol rewards its shareholders after the pandemic and follows in the footsteps of other large European groups, such as Royal Dutch Shell o TotalEnergies.

Repsol accelerates to make the dividend its flag

With the shares touching the highs of the year, Repsol wants to continue squeezing its role as a leading oil company in dividend yield, as the large groups of the Old Continent had tightened their fence after the rise in crude oil.

As with other giants of the Spanish stock market, such as Telefónica, the dividend for Repsol is almost a matter of state.

Precisely, “the progress of business and the generation of cash derived from the scenario of higher prices of raw materials” led Repsol to propose an improvement in the cash dividend, the oil company said on Thursday.

According to, a healthy balance sheet and better cash generation prospects were allowing Repsol to reintroduce buybacks into its financial framework this year, which has finally been confirmed.

The rise in oil changes the scenario for Repsol

All in all, this news came less than a year after Repsol unveiled a strategic plan in November that precisely included the reduction of the dividend. Its increase was only contemplated in 2023.

At that time, crude oil barely exceeded $ 50 a barrel, the scenario with which the group he leads Josu Jon Imaz did his accounts. Now, after oil bounced more than 64 percent in the year, the picture is completely different.

In the first half results, Imaz He said the group had extra cash that it could use for investments or anticipating the first buyback of shares in the strategic plan. In any case, this would be done if the group followed its guidelines and kept the debt under control.

Indeed, Repsol reduced its net debt between January and September by 9 percent to stand at 6,136 million euros.

Repsol multiplies the adjusted net income by eight

Regarding the results presented this Thursday, Repsol multiplied the adjusted net result by eight, to 1,582 million euros, placing it at the levels prior to the coronavirus pandemic.

“The measures defined in the plan, together with an efficiency-oriented management, allowed the company to capture the maximum possible value” and return to pre-crisis benefits, the group said.

All Repsol divisions achieved positive results, especially Exploration and Production, thanks to the rise in oil and raw materials. For this reason, the group achieved a free cash flow of 1,855 million euros in all these segments.