By Pietro Lombardi
MADRID (Reuters) -Spanish energy company Repsol pledged on Wednesday to maintain its dividend payout policy and planned buyback for the year, even if market conditions deteriorate in coming quarters, after it reported better-than-expected first-quarter results.
Adjusted net profit in the quarter dropped 48% from a year earlier to 651 million euros ($741 million), beating the company-provided average forecast of 642 million euros.
The higher-than-expected results came despite oil refining margins more than halving from a year earlier, lower oil prices, a drop in margins in its chemical business and market volatility, it said.
“During the first quarter of 2025, we have laid the groundwork to meet our objectives for the year, ensuring our commitment to shareholder remuneration, optimising investments and improving our portfolio through divestments that will represent a cash inflow of around 700 million euros,” Chief Executive Josu Jon Imaz said in a statement.
The company confirmed its shareholder payout target of between 30% and 35% of cash flow from operations.
Shares in Repsol traded 0.2% higher in late morning – while Spain’s blue chip index was down 1.5% – after opening in the red.
The target would stand even if market conditions deteriorate – with oil refining margins falling to $4 per barrel and with a Brent crude oil price declining to $65 a barrel, down from a margin of $5.3 and crude at $76 during the first quarter.
“Under this scenario, we will be able to maintain the control of net debt and respect our distribution commitments in any case,” Imaz told analysts in a call to present the results.
Even under this scenario, the company guarantees a buyback of at least 700 million euros this year, as previously pledged, he added. To offset the lower cash flow from operations, it would trim investments, he said.
The company’s net profit, including items relating to provisions, divestments and inventory, fell to 366 million euros from 969 million euros in the same period last year.
($1 = 0.8788 euros)
(Reporting by Pietro Lombardi, editing by Inti Landauro, Sharon Singleton, Alexandra Hudson)
