Repsol reported a net profit of 1.626 billion euros for the first half of the year, up 14.5% from the same period a year earlier, according to a disclosure to the CNMV. This figure sits well below the historic 2.539 billion euros achieved in the first half of 2022, driven by sharply higher oil prices at the time due to the war in Ukraine. Today’s environment is very different, with gas prices notably lower than two years ago and refining margins reduced, shaping a distinct earnings landscape.
The adjusted net profit, which serves as a clearer gauge of underlying business performance, reached 2.126 billion euros, down 21.8%. Across business lines, every area performed worse than the previous year. The industrial segment led the decline, slipping 37% to 1.019 billion euros, pressured by weaker refining results, softer gas trading, and offset by stronger chemical operations and lower taxes thanks to reduced operating performance.
In exploration and production, the operating earnings amounted to 869 million euros, down from 884 million in the same period of 2023 due to lower realized gas prices, higher depreciation, increased production costs, and the exit from all productive assets in Canada. These factors were partly offset by higher crude realizations and greater volumes sold.
In the downstream customer segment, the result stood at 314 million euros, down from the 2023 first-half figure, driven by mobility and LPG businesses. The renewables arm faced a negative result of 5 million, reflecting lower market prices and reduced generation from combined-cycle plants.
The company stated that the quarter again demonstrated solid operating and financial performance, underscoring a strategic priority to deliver greater value while cutting emissions. Josu Jon Imaz, the chief executive, commented that the group remains focused on enhancing shareholder value through disciplined capital allocation and efficient operations.
Retribution to shareholders
A new share buyback and cancellation program was announced, amounting to 20 million euros in the second half of the year. Earlier in the year, the company completed the cancellation of 40 million own shares on July 12, 2024, marking the end of the first capital reduction operation of 2024.
The company paid an 0.90-euro gross dividend per share in 2024, comprising 0.40 euros paid in January and 0.50 euros in July. This dividend level represents a near 30% increase over 2023, aligned with the goal of distributing approximately 1.095 billion euros to shareholders.
Overall, Repsol projects total cash distributions to shareholders of 4.6 billion euros in cash dividends through 2027. In addition, it could add up to 5.4 billion euros in buybacks and share cancellations, aiming for a payout range of 25% to 35% of the period’s operating cash flow. These moves illustrate the company’s commitment to returning value to investors while maintaining a prudent capital strategy.
Note: All figures are reported in euros and reflect the latest disclosed half-year results. The company’s remarks emphasize that market dynamics, including commodity prices, exchange rates, and regulatory environments, continue to shape performance across segments. Attribution for the performance results is drawn from the company’s public disclosures and management commentary in this reporting period.