Repsol focuses its investment until 2028 on Spain and Portugal

MadridRepsol has updated its current 2024-2027 strategic plan, extending it to 2028 at a time marked by the conflict in the Middle East and its impact on energy supply and costs, particularly on raw materials such as oil and gas. The leading oil company in Spain and fourth-largest electricity provider, however, has set aside this shock and outlined a short-term future defined by three priorities: financial strength, investment discipline, and improved shareholder returns. In fact, Repsol is significantly increasing shareholder payouts through dividends and share buybacks, while investment will be "selective," the company announced in a statement on Tuesday. The plan anticipates investing between €8.5 billion and €10 billion by 2028 and focuses on projects that have already been approved. By territory, Spain and Portugal account for 55% of the investment, while 34% will be allocated to the United States, its other strategic market.

Regarding shareholder remuneration, Repsol will distribute €3.6 billion in cash dividends until 2028. This dividend could range from the current €1.051 to a maximum of €1.267 in 2028, in the best-case scenario. An additional €2-3.5 billion will be generated through share buybacks. All of this will help boost shareholder returns by an average of 6% annually until 2028. "This proposal provides certainty for shareholders, even in the most challenging scenario," the energy company stated.

Exploration and production business

Although Repsol plans to continue growing in all business areas to strengthen its "multi-energy" profile, it will dedicate a significant portion of its investments to hydrocarbon exploration and production. The company estimates that production in 2028 will reach 580,000 to 600,000 barrels of oil per day, between 6% and 10% higher than in 2025, of which 40% will be produced in the United States. "These projections could be increased by the improved situation in Venezuela," the oil company states, which expects to increase production in the country by 50% and triple it within three years. However, the new plan anticipates an oil price scenario of $65 per barrel for Brent crude, far from the $100 it reached this week due to the conflict in the Middle East.