It will implement a new own share repurchase program for this year and a capital reduction
Repsol obtained a net result of 4,251 million euros in 2022, which represents an increase of 70% compared to the previous year, in a year marked by uncertainty, volatility and complex market dynamics, derived from the invasion of Ukraine, according to The company has reported, which has highlighted that the integrated business model and the 2021-2025 Strategic Plan were "essential" to achieve positive performance.
Despite this, the profits recorded in 2021 and 2022 (6,750 million euros) still do not make it possible to offset the losses of the 2019 and 2020 financial years (7,105 million euros).
The company plans to allocate a historic organic investment of more than 5,000 million euros this year to boost its multi-energy profile. 35% of these investments will be assigned to low-carbon projects, which reinforces, according to the group, their transformative nature.
In 2022, Repsol invested 4,182 million euros to advance its transformation, 40% more than the previous year, mainly in the Iberian Peninsula and the United States. Specifically, the company invested 1,400 million euros in Spain during the year.
Likewise, the situation of the industrial business, the result of European regulation, led the company to make new adjustments for impairment in the book value of its assets, mainly its refineries, whose long-term profitability and competitiveness would be impacted if they are not they correct aspects that are weighing down the sector in Europe, such as the insecurity of the business environment and regulatory and tax pressure.
These provisions account for most of the specific results for the period, which stood at -2,485 million euros.
"Energy prices increase because demand rises, while, contrary to what logic would dictate, difficulties are imposed on the production of some energy products. High prices are not 'fallen from heaven', they are a consequence of the incorrect decisions made in Europe", highlighted the CEO of Repsol, Josu Jon Imaz.
"Considering a benefit obtained from a great investment effort as extraordinary and penalizing it against those who import products from other continents without creating a single industrial job, is, in addition to being unfair, incomprehensible and detrimental to the Spanish economy," he stressed. .
As he has indicated, the social debate on business benefits must be put into context.
"Populist messages only serve to hinder business activity, provoke investor mistrust, reduce investment and economic activity, decrease tax collection and put industrial employment at risk. Faced with these messages, Repsol is committed to a path of responsibility to society," he said.
The company has also highlighted that the activity carried out in 2022 resulted in the largest tax contribution in its history, more than 17,000 million euros, of which 70% were paid in Spain (12,000 million).
THE INCREASE IN REMUNERATION WILL BENEFIT MORE THAN 520,000 INVESTORS
In addition, Repsol announced an 11% increase in cash remuneration for its shareholders in 2023 and carried out the redemption of 200 million shares, which benefits more than 520,000 investors, the vast majority of them minority and located in Spain. .
Specifically, cash remuneration will increase by 11% in 2023, up to 0.70 euros gross per share, thus bringing forward the target set in the Strategic Plan for 2024.
To this end, the cash payment distributed to shareholders last January was increased to 0.35 euros gross per share, to which will be added a complementary payment of another 0.35 euros gross per share after approval by the ordinary general meeting of shareholders this year.
Additionally, Repsol brought its share repurchase and redemption target forward by three years, reaching 200 million redeemed shares by the end of 2022, an amount initially planned for the entire 2021-2025 period.
By 2023, Repsol will implement a new own share buyback program and a capital reduction.
Thus, the board of directors has agreed to implement a new treasury share repurchase program in 2023 for a maximum of 35 million shares and to propose to the next general meeting a capital reduction through the redemption of 50 million treasury shares.
Net debt was reduced by 61% during 2022, to 2,256 million euros. Liquidity increased to 12,022 million euros, enough to cover four times the short-term gross debt maturities.
On the other hand, to help customers in an inflationary context, Repsol allocated more than 500 million euros to additional discounts on fuel at its service stations in Spain.
Likewise, Repsol made an additional effort in 2022 to guarantee supply in Spain, in a context of tension in international markets, and came to allocate more than 2,000 million euros to increase its inventories.
"We are aware of our work as an essential service for society. For us, it is always a priority to fulfill this responsibility, which emerges with more importance, if possible, in difficult times like the ones we have experienced in recent years. In 2022, we We are making an effort to guarantee supply, reduce the impact of the energy crisis on our customers and invest in the industrial future of Spain, while continuing to enhance our profile as a multi-energy company and advancing in decarbonisation", highlighted the CEO of Repsol .