Repsol’s profit beats forecasts due to the rise in oil and gas prices

By: News Team

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Repsol's profit beats forecasts due to the rise in oil and gas prices

Spain’s Repsol (BME:REP) beat fourth-quarter net profit expectations on Thursday, thanks to high fourth-quarter prices. petroleum and gas.

Its fourth-quarter adjusted net profit more than doubled to 2.010 billion euros ($2.150 billion), up from 872 million a year earlier. This figure exceeded the 1.750 billion euros expected by analysts surveyed by Refinitiv Eikon.

Net profit for the whole of 2022 amounted to €4.250 billion, compared to €2.500 billion in 2021.

Repsol attributed the good results to the volatility of the energy market during the year.

“The international economic situation has led to an increase in the price of raw materials, and security of energy supply has become one of the top priorities in Europe,” the company said in a statement.

Repsol used its increased cash flow to increase investment to €4.180 billion in 2022, up 40% from the previous year, reduce its net debt by 60% to €2.260 billion and increase shareholder remuneration.

The company plans to increase its cash dividend by 11%, to 0.70 euros per share, and repurchase 35 million additional shares, equivalent to 2.64% of its capital, to subsequently redeem 50 million shares, equivalent to 3.77% of its capital.

Repsol’s substantial profits are in addition to similar results of its large competitors TotalEnergies, BP (LON:BP), Shell (LON:RDSb), Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CLC), prompting calls for increased tax burdens on the sector at a time when households are struggling to pay their electricity bills.

Repsol CEO Josu Jon Imaz said last year that imposing new taxes would threaten companies’ investment plans at a time when they are crucial to ensuring energy security.

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