Repsol registered a net profit of 1,420 million euros in the first half, which represents a drop of 44% compared to the same period of the previous year, weighed down by a context of falling hydrocarbon prices and lower profit margins. refinery compared to last year, when they skyrocketed due to the energy crisis following Russia's invasion of Ukraine, the company reported.
In this first half of 2023, marked by slow growth in the world economy, monetary policy decisions and international tensions derived from the war in Ukraine and a context of uncertainty, global inflation and slow recovery of the Chinese economy, prices of energy products plummeted from last year.
Thus, between January and June refining margins fell 29%, Brent crude prices fell 26% and the US gas benchmark, the Henry Hub, plummeted 54%.
In this environment of normalization of prices and energy supply, after a turbulent 2022, the company highlighted that its good performance "reflects the robustness of its 2021-2025 strategic plan and its integrated model, which has materialized in some solid results."
Repsol's adjusted net result up to June, which specifically measures the progress of business, stood at 2,718 million euros, almost 15.7% less than a year ago.
"We are consistently obtaining solid results in challenging environments, while we continue to transform the company and build a unique multi-energy offer that facilitates a just transition for our customers," said Repsol CEO Josu Jon Imaz.
With this solid performance through June, the group has once again accelerated its shareholder remuneration objectives and to take advantage of investment and growth opportunities.
Thus, after the payment this month of a complementary dividend of 0.35 euros gross per share which, together with the remuneration paid in January, placed the cash dividend for the year at 0.70 euros gross per share, 11% more than In the previous year, Repsol has decided to continue with its share repurchase programs, a way of complementing this remuneration to its shareholders.
In this way, the energy company has approved a new capital reduction through the redemption of 60 million own shares, which will be added to the 50 million shares canceled in June.
This combination of dividends and capital reduction will mean the distribution of close to 2,400 million euros to shareholders in 2023. At the end of this year, the group will have reduced its share capital by 20% compared to December 2021, well above the target established by the 2021-2025 strategic plan.
With regard to the company's net debt, it stood at 797 million euros at the end of the period, 9% below the end of March and 65% below that of December 31, 2022. Liquidity reached 11,441 million, enough to cover close to six times the short-term gross debt maturities.
INVESTMENTS ALREADY EXCEED 3,000 MILLION.
Likewise, in the period from January to June, Repsol has maintained the course in its transformation and decarbonization process, with the aim of becoming a net zero emissions company by 2050, with investments of 3,047 million euros in the period, mainly in low carbon projects.
In line with its 'road map', the multi-energy company foresees that 35% of the investments in 2023 will be dedicated to low-carbon projects, which accentuates its transformative nature. In the first semester, 43% of the total investment went to Spain and 39% to the United States.
EXCEEDS 2,000 RENEWABLE MW IN OPERATION.
With regard to renewable electricity generation, one of the fundamental pillars of the company in the energy transition, in this first semester it has reached a 'green' capacity in operation of 2,016 megawatts (MW), thus advancing in the objective of 6,000 MW in 2025 and 20,000 MW in 2030, after the incorporation of Asterion Energies' portfolio of renewable assets (7,700 MW) and the start of development projects in Italy, in addition to the progressive start-up of new facilities in Spain , United States and Chile.
In addition, in the period, the multi-energy company reinforced its multi-energy profile, reaching 6.8 million digital customers through its Waylet application.
Likewise, it increased its portfolio of electricity and gas clients to two million, after the acquisition of 50.01% of the trading company CHC Energía.
TAX CONTRIBUTION OF 7,343 MILLION, 67% IN SPAIN.
On the other hand, regarding the tax contribution, in the first half of the year, Repsol contributed 7,343 million euros, of which 67% (4,960 million euros) correspond to Spain.
Own taxes accrued amounted to 2,186 million euros and represented 59% of profits. The company indicated that it contributed during the period with a Corporate Tax rate of 31%, "well above the nominal rate applicable in Spain -25%- and the average for OECD countries."