Repsol Earnings: Shareholder Returns to Remain Intact Despite Earnings Fall

Repsol’s second-quarter adjusted earnings fell to EUR 827 million from adjusted earnings of EUR 2.2 billion a year ago largely on lower oil and gas prices and weaker refining margins. Operating cash flow fell to EUR 1.7 billion from EUR 1.8 billion the year before while capital spending grew to EUR 1.3 billion from EUR 859 million. Management expects full-year organic capital spending of EUR 5 billion. Repsol reiterated a 2023 30% payout ratio of cash flow to shareholders, on the upper end of the guidance range. This will amount to EUR 2.4 billion, including an additional 60 million shares to be repurchased by year-end for a total of 110 million in 2023.