Decrease in Repsol's earnings by a substantial 62.9%, resulting in a revenue of EUR 603 million by June
Repsol, the Spanish multinational oil and gas company, has announced a €350 million share buyback program for 2025, as part of a broader capital reduction strategy. This move is expected to result in total shareholder returns—cash dividends plus buybacks—of up to €700 million.
The decision comes amidst a period of operational strength and positive cash flow for Repsol, with the company projecting €6 billion in operational cash flow for 2025. This capital reduction strategy is intended to "enhance shareholder remuneration," reflecting a commitment to returning value to investors.
In the first half of 2024, Repsol's adjusted net profit was 1.353 billion euros, a 36.4% decrease compared to the same period in 2024. The decline in the industrial business result was mainly due to the blackout on April 28 and other energy interruptions at the industrial centers in Cartagena (April 22) and Puertollano (June 16), which had an impact of around 175 million euros.
However, in the customer area, Repsol reached 2.8 million electricity and gas customers in Spain and Portugal, with almost 142,000 new customers in the second quarter. The adjusted profit in this area grew by 14%, to 358 million euros. Meanwhile, the adjusted profit from low-carbon generation was 12 million euros.
In the Exploration and Production ('Upstream') business area, Repsol's adjusted result reached 897 million euros in the first half of 2024, a 3.2% increase compared to the same period last year. Over 10 million digital users were recorded, representing a 17% increase.
Gross investments between January and June 2025 were 2.7 billion euros, primarily in the United States, Spain, and Brazil. Net debt was 5.728 billion euros at the end of June, 102 million euros less than in March.
Repsol is also evaluating possible legal actions related to the blackout, once the responsibilities are officially determined. No new information about the gas storage sphere sale was provided.
This share buyback program is not the first time Repsol has pursued such a strategy. Earlier in the year, the company completed a separate buyback of 25.2 million shares (2.16% of capital) for €300 million. The company's Board of Directors approved this new capital reduction through a share buyback worth 350 million euros for amortization, scheduled for 2025.
What is the significance of Repsol's €350 million share buyback program in the finance industry, especially in light of their operational strength and capital reduction strategy? This initiative, aimed at enhancing shareholder remuneration, follows Repsol's earlier share buyback of €300 million in 2021, and is expected to impact the energy sector, given Repsol's position as a multinational oil and gas company.
