Repsol SA highlighted its diversification efforts in a strategic update on Wednesday and said it would bolster shareholder distribution after delivering targets two years before the end of the plan for 2016 to 2020. Dividends, accompanied by stock buybacks, would be raised by 8% per year, to €0.95 next year and €1 after that, the document said. The oil giant announced it aims to spend €15 billion through 2020, mostly in upstream and downstream divisions, including €2.5 billion for projects with low emissions and long-term endeavors.
The Madrid-based energy conglomerate claimed the price of Brent of $50 per barrel, used in the calculations, enables "a high degree of financial flexibility and a gearing ratio that is well below the industry average." Upstream cash flow is planned to be increased by 50% from 2017 to €3 billion. Production is forecasted to rise 8% to 750,000 barrels of oil equivalent per day in the same period, together with a shift to "higher-margin barrels."
Growth in cash flow downstream is seen at 27% to €700 million, the company said.