Repsol, the Madrid-based energy titan, delivered a solid performance for the first half of 2023, posting net income of €1.42 billion, despite a global downturn in energy prices and demand. The company’s robust earnings were fueled by increased production, efficient refinery operations, and growth in customer acquisition and loyalty, primarily via the Waylet app.
The ongoing global economic slowdown, exacerbated by monetary policy decisions and international tensions due to the war in Ukraine, has led to a steep decline in energy prices. The first half of 2023 recorded a fall of 29% in refining margins, 26% in Brent crude oil prices, and 54% in the US gas benchmark, the Henry Hub.
Amidst these challenging market conditions, Repsol believes its earnings underscore the resilience of the company’s integrated business model and the effectiveness of its 2021-2025 Strategic Plan.
In the first half of 2023, Repsol made significant strides in its decarbonisation agenda, committing to a net-zero emissions target by 2050. The company invested €3.047 billion, primarily in Spain and the United States. As part of the company’s commitment to a sustainable future, Repsol said 35% of its 2023 investments are allocated to low-carbon projects.
The Spanish energy giant has also decided to provide an exceptional return to its shareholders. It paid a final dividend of €0.35 gross per share in July, which, combined with the payment in January, brought the cash dividend for the year to €0.70 gross per share, an increase of 11% over the previous year.
In addition to the dividends, Repsol approved a new capital reduction, marking the redemption of 60 million own shares, following the redemption of 50 million shares in June. By year-end, Repsol will have decreased its share capital by 20% from its December 2021 levels. This capital reduction, combined with the dividends, will result in the distribution of nearly €2.4 billion to shareholders in 2023.
Repsol’s CEO, Josu Jon Imaz, stated: “We are consistently delivering strong earnings 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.”