Repsol doubles its profits to 1,392 million due to the rise in crude oil

The company will propose to increase the dividend by 5% to shareholders, up to 0.63 euros per title

Repsol has obtained a net profit of 1,392 million euros in the first quarter of the year, which means increasing its result by 115% compared to the 648 million in the same period of the previous year. This increase is fundamentally due to the increase in the price of hydrocarbons, which in March climbed to a maximum not seen since mid-2008. With these accounts on the table, Repsol's shares rise in the early hours of the session more than one 1% in the Stock Market.

The rebound in fuel prices, which already began in mid-2021 due to the recovery after the coronavirus crisis, and which has now been increased by the tension in the war in Ukraine, has come to boost the barrel of Brent to a average of 102 dollars between January and March, with peaks of up to 130 dollars, compared to 61 dollars per barrel a year earlier.

In this way, the adjusted net result of the group, which specifically measures the progress of the businesses, reached 1,056 million euros in the first quarter of 2022, compared to 471 million euros in the same period of 2021, driven by the behavior of the Exploration and Production area.

Repsol's CEO, Josu Jon Imaz, points out that these results "demonstrate the strength" of the group's integrated business model and "the correct path" of its strategic plan. "In 2022 we will continue to advance our transformation and decarbonization goals, adding value to our shareholders and demonstrating responsibility when it comes to supplying energy to customers," he added.

For its part, the company's operating cash flow stood at 1,091 million euros as of March, also above that registered in the first quarter of 2021. Excluding working capital, this number increases to 3,064 million euros , with a rise of 1,437 million compared to the comparable figure for the same period of the previous year.

Regarding the net debt of the group chaired by Antonio Brufau, at the end of March it was 5,900 million euros, slightly higher than the figure at the end of December, when it amounted to 5,762 million, mainly due to the increase in working capital derived from the strong rise in prices of raw materials.

The strong generation of cash has been reflected, since last year, in an improvement in shareholder remuneration, who received a gross dividend of 0.30 euros per share on January 11.

Additionally, the board of directors has proposed to the ordinary general meeting of shareholders, which will be held on May 6, an improvement in the cash dividend of 5%, to 0.63 euros per share, together with a reduction in the share capital, through redemption of 75 million treasury shares, representing approximately 4.91% of Repsol's share capital.

In this environment and as established by its strategic plan to add value to shareholders, the energy company carried out a share buyback program that involved the acquisition of 11.6 million shares.

Exploration and production cover 69% of the result

By business area, the contribution of Exploration and Production stood out, which carries out all its activity outside of Spain, representing 69% of the group's adjusted net income, with earnings of 731 million euros up to March, more than double the 327 million euros a year ago, driven by the rise in oil and gas prices and its focus on highly profitable projects. For its part, the service stations that the company has in Spain -more than 3,500- represented just under 5% of the total adjusted net result.

The Industrial area also improved its contribution, with a result that reached 236 million euros, compared to 73 million in the same period of 2021, with the clear improvement in the Refining business, due to higher volumes than a year ago. year, in which it was weighed down by the pandemic.

For its part, the Commercial and Renewables area, with a result of 117 million euros, slightly improved its performance compared to the same period of the previous year, marked by the restrictions on mobility derived from the pandemic and the effects of the storm Filomena .

In the field of mobility, Repsol reinforced its historic commitment to customers in the first months of this year and was the first operator in Spain to establish voluntary discounts at its service stations in response to the rise in fuel prices caused by the invasion from Ukraine.

Thus, the company's discounts, which began on March 16, go beyond the State bonus, with a total discount that reaches users of its Waylet application -which has reached four million customers- and customers Solred professionals a minimum of 30 euro cents per liter of fuel.

In Renewables and Low Carbon Generation, Repsol closed an agreement in March with the investment company TRIG for the sale of a 49% stake in the Valdesolar photovoltaic project (Badajoz). The operation, which involves valuing 100% of this asset at 239 million euros, is added to the one carried out in November last year for the Pontegadea group to acquire 49% of the Delta wind farm. Currently, the multi-energy company has more than 3,800 megawatts (MW) of total installed capacity for low-emission generation.

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