Repsol cuts profit by 44% in the first half compared to the same period of the previous year, to 1,420 million euros, in a context of falling oil prices and energy demand. For its part, the adjusted result, which specifically measures the operation of the businesses, stood at 2,718 million euros between January and June, representing a year-on-year decrease of 15.5%, as reported Thursday by the company to the National Securities Market Commission (CNMV).
“We are consistently delivering strong results in challenging environments, as we continue to transform the company and build a unique multi-energy offering that facilitates a just transition for our customers,” CEO Josu Jon Imaz said in a statement.
Repsol stressed that the first semester of the course was characterized by “slow growth of the world economy, marked by decisions on monetary policy and international tensions arising from the war in Ukraine.” “In this context of uncertainty, global inflation and slow recovery of the Chinese economy, the prices of energy products plummeted compared to 2022, when there was an anomalous rise in commodity prices,” he said.
3,047 million in investments
Between January and June, refining margins decreased by 29%, Brent crude prices fell by 26% and the US gas benchmark, the Henry Hub, fell by 54%,” he stressed. The group invested 3,047 million euros in the period, mainly in low-carbon projects. In line with its strategic plan, it foresees that 35% of investments in 2023 will be dedicated to low-carbon projects. During the first half of the year, 43% of total investment went to Spain and 39% to the United States.
The company chaired by Antonio Brufau has paid this month a complementary dividend of 0.35 euros gross per share charged to 2022 profits, which was added to the remuneration paid in January. With this, the cash dividend increased by 11% compared to the previous year, to 0.70 euros gross per share. The shareholders have also agreed to pay a further €0.375 gross per share against free reserves, which are expected to be distributed throughout January 2024, on the date specified by the board of directors.
In addition, Repsol’s board of directors approved on Wednesday a new capital reduction through the redemption of 60 million treasury shares, which will be added to the 50 million shares canceled in June. In this sense, the combination of dividends and capital reduction will mean the distribution of about 2,400 million euros to shareholders in 2023.
By the end of the current academic year, Repsol will have reduced its share capital by 20% compared to December 2021, well above the target set by the 2021-2025 strategic plan. Net debt stood at 797 million euros at the end of the period, 9% below the end of March and 65% lower than that of December 31, 2022. Liquidity reached 11,441 million, “enough to cover about six times the maturities of gross short-term debt,” according to the company itself.
Tax contribution
With regard to the tax contribution, in the first half of 2023, it contributed 7,343 million euros, of which 67% (4,960 million euros) corresponded to Spain. Accrued own taxes stood at 2,186 million euros and represented 59% of profits. For its part, the Corporate Income Tax rate was 31%. Repsol has pointed out that this level “well above the nominal rate applicable in Spain (25%) and the average of OECD countries”.
Repsol will update its strategic plan during the first quarter of 2024 after achieving all the main objectives set two years ahead of schedule. It will focus on a strategy that will achieve net zero emissions by 2050, while improving the company’s value position.
