Repsol unveiled its 2021-2025 Strategic Plan which will transform the company in the following years, accelerating the energy transition and ensuring return and the highest value for shareholders.
The new strategy outlines a challenging roadmap with more ambitious intermediate emissions cuts targets to successfully achieve zero net emissions by 2050. Repsol will decarbonize its asset portfolio and establish a new operating model.
The new strategic plan contemplates investment of €18.3 billion between 2021 and 2025, of which €5.5 billion – 30% - will be spent on low-carbon businesses.
The renewed strategy is self-financing at an average $50 per barrel of Brent and $2.5 per MBtu at the Henry Hub. At these prices, the company can generate cash to cover investments and dividends throughout the period, without increasing debt from current levels.
Repsol will evolve its organization into four business areas (Up-stream, Industrial, Customer, and Low-Carbon Generation), supported by more efficient corporate and service units to favour differentiated results and value crystallization.
The company will maintain shareholder distribution amongst the most attractive in the industry and the Spanish Ibex-35 Index, combining a cash dividend with share buy-backs. The cash dividend will be set at €0.60 per share and rise to €0.75 per share. Including buybacks, it can exceed €1 per share in 2025.
“With this new Strategic Plan, which leverages our strengths, we are taking a significant step towards becoming a net zero emissions company, outlining a profitable and realistic roadmap that will allow us to grow, maximize value for our shareholders, and assure the future.”
“Our strategy is based on a multi-energy offering that combines all the technologies for decarbonization of energy. We will be more efficient and increase our renewable energy objectives as well as our manufacture of products with a low, neutral, or even a negative carbon foot-print.
We will promote circular economy initiatives, develop new energy solutions for our customers, and boost cutting-edge projects to reduce the industry’s carbon footprint.” Josu Jon Imaz, Repsol Chief Executive Officer.