Repsol obtained a net profit of 1,112 million euros in the first quarter of the year, which represents a drop of 20% compared to the 1,392 million euros registered in the same period of the previous year, due to the drop in prices of crude, the company reported.
In this first quarter of 2023, hydrocarbon prices decreased significantly, from the maximum prices they touched in 2022. Thus, Brent crude oil lowered its average price to 81 dollars per barrel, 21% less than in the first quarter. quarter of a year ago, with a notable drop in March, to 72 dollars per barrel, as a result of the banking crisis experienced in the middle of the month. For its part, Henry Hub gas registered an average of 3.4 dollars per MBtu, 32% lower than that of the same months of 2022.
In this context, all the company’s business areas achieved positive results. In the cases of Client, Industrial and Low-carbon Generation, they were above those obtained in the same period of the previous year, although Exploration and Production reflected in its figure this considerable decrease in hydrocarbon prices.
Thus, the group’s adjusted net result, which specifically measures the progress of business, reached 1,891 million euros up to March, almost 80% more than in the same period last year.
Specifically, the Exploration and Production business suffered a decrease in its adjusted result, which stood at 474 million euros as of March, 257 million euros less than in the same period of 2022, although that of Industrial was strongly boosted, up to 1,279 million euros, 1,044 million euros higher than in the same quarter of 2022, mainly due to higher results in the Refining businesses, as well as in Trading and Wholesale and Gas Trading and the appreciation of the dollar against the euro.
The group chaired by Antonio Brufau thus pointed out that it advanced guided by its 2021-2025 Strategic Plan and its integrated business model, which “were key to obtaining this result in a quarter in which crude oil prices fell, on average, by 20 % Compared to the same period of the previous year”.
In addition, he highlighted the investment effort of the multi-energy company in the period, which amounted to 1,726 million euros, destined mainly for Spain and the United States, two key countries in its strategy. The company expects that 35% of the historical figure of 5,000 million euros in investments in 2023 will be allocated to low-carbon projects.
Repsol’s CEO, Josu Jon Imaz, indicated that the group’s integrated business model, as well as the fulfillment and ambition of its ‘road map’, “are being essential to obtain solid results”.
These numbers allowed the company to maintain a solid cash flow generation in these first three months of the year -1,827 million euros, 736 million euros higher than the same period in 2022-, which has made it easier for it to face the volatility of the environment, take advantage of profitable growth opportunities and advance shareholder remuneration targets.
REDUCES ITS DEBT TO 880 MILLION.
Likewise, Repsol reduced its net debt, reaching 880 million euros at the end of the period, 1,376 million euros less than at the end of 2022, after receiving the proceeds from the sale of 25% of the Exploration and Production unit. .
With regard to remuneration for the more than 520,000 Repsol shareholders, most of them minority and located in Spain, the company paid a cash dividend of 0.35 gross euros per share last January. This same amount will be distributed in July after its approval by the general meeting, which is scheduled to be held on May 25.
With these payments, in 2023 the energy company will increase shareholder remuneration by 11%, up to 0.70 euros gross per share, which is ahead of the target set by its strategic plan for the year 2024.
To this cash dividend will be added, before the end of July, a new capital reduction of 50 million shares proposed by the board at the next general meeting, after having reduced the capital by 200 million shares in financial year 2022, the expected amount for the entire period 2021-2025. To this end, on March 6 a new buyback program began to acquire a maximum of 35 million shares.
LAUNCH OF CONNECTED ENERGIES.
Likewise, at the beginning of 2023, the energy company has continued its transformation and reinforced its multi-energy profile, especially after the launch on April 1 of Energías Conectadas, a pioneering commercial proposal in Spain that allows savings and having a single supplier that covers all your energy needs for mobility and the home.
This new programme, to which five million customers have already signed up, allows for a discount in the form of a Waylet balance ranging from 5 to 20 euro cents per liter of fuel and 100% of the amount on electric vehicle recharges .
“At the same time, we continue to raise our multi-energy profile and make progress in decarbonisation. We have launched a pioneering commercial offer in Spain, which helps our customers in their day-to-day activities by linking all the energies necessary for mobility and the home, and consolidating our company vision,” said Imaz.
In addition, Repsol extended discounts at its service stations throughout the quarter, after the Spanish Government announced that it was not extending the state rebate on fuel prices. Thus, adding the whole of 2022 and the first three months of 2023, it has offered additional savings for its clients close to 550 million euros.
