Repsol (REP) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted income was €859 million, up 4% year-over-year but down 32% sequentially; net income reached €657 million, more than doubling year-over-year, with EBITDA at €2,001 million, up 25% year-over-year.

• Cash flow from operations was €925 million, 32% lower quarter-over-quarter and 45% below last year, impacted by a €1 billion payment for the UK JV acquisition and Sinopec settlement; excluding this, cash flow rose €216 million year-over-year.

• Net debt increased to €4.6 billion, up €0.7 billion from March, mainly due to treasury share purchases and new leases; gearing at 13.8%.

• Total shareholder remuneration reached €1.7 billion by July, including dividends and share buybacks; 40 million shares cancelled YTD, with a new 20 million share buyback program announced for H2 2024.

• Strategic focus remains on advancing the energy transition, optimizing the portfolio, and maintaining a strong financial position.

Financial highlights

• Q2 adjusted income: €859 million (+4% YoY, -32% QoQ); net income: €657 million (+113% YoY); EBITDA: €2,001 million (+25% YoY).

• Cash flow from operations: €925 million (-32% QoQ, -45% YoY); net CapEx: €1.5 billion.

• Net debt: €4.6 billion at quarter-end; gearing at 13.8%.

• Dividend per share for 2024: €0.9 (+30% YoY); minimum 2025 DPS: €0.975 (+8% YoY).

• Total shareholder remuneration in 2024 expected to be ~31% of operating cash generation.

Outlook and guidance

• Refining margin indicator expected to average $8/bbl in 2024, with a CCS margin premium of $1.7/bbl.

• Upstream production guidance: 570,000–600,000 boe/d.

• Cash flow from operations expected at the lower end of €6.5–7 billion range, mainly due to lower gas prices.

• Net CapEx for 2024 remains at €5 billion, including ConnectGen acquisition.

• Shareholder distribution policy remains at 31% of CFFO, with potential for further buybacks if macro improves.