Jon Imaz (Repsol): “Shareholder remuneration could be increased again if there is excess cash”

The energy company, he says, is in no hurry to go public because it does not have a special need for financing for its renewables strategy.

Jon Imaz (Repsol): Shareholder remuneration could be increased if there is excess cash

The CEO of Repsol, Josu Jon Imaz, has indicated that the company has room to improve shareholder remuneration if the circumstance arises and there is no drastic change in macroeconomic conditions.

Imaz has made these statements in the conference with analysts presentation of the company’s results in the first nine months, when it obtained a net result of 1,939 million euros, 32% higher than that obtained in the same period of 2019, prior to the pandemic.

Dividend rain

The company has also announced that it will propose to its shareholders’ meeting an improvement of the cash dividend of a 5%, up to 0.63 euros per share, and a buyback of 75 million shares, equivalent to 4.9% of its share capital.

Imaz has underlined Repsol’s commitment to maintaining the financial prudence, and explained that if the company registered an excess of cash, it could opt either for the acceleration of low-carbon projects, or for an improvement in shareholder remuneration, an aspect considered as a pillar in its Strategic Plan to 2025.

Said plan establishes the repurchase of 200 million shares throughout the period, at a rate of 50 million shares per year, so the amortization announced today represents progress in the objectives.

Decarbonization strategy

The CEO of the company has remarked that “there is still room for improvement” in the objectives set, but has made it clear that decisions will be taken “step by step”, depending on the circumstances, and always maintaining the financial prudence of the group.

The CEO of the energy company has said that it could increase ambition for renewables and hydrogen. In the case of renewable capacity, it would raise its objectives by 15% in 2025, to 6 GW of installed capacity, and a 60% by 2030, up to 20 GW. And in the case of hydrogen, the stakes are higher. The new ambition would mean raising the targets for 2025 by 40% and a 60% more by 2030.

It also foresees the construction of ultra-fast charging points every 50 kilometers on the roads of our territory.

Asked about the possible IPO or the incorporation of a partner to its renewable subsidiary, Josu Jon Imaz has pointed out that the company is not in a hurry in this regard. He says that he does not have a special need for financing, and has recalled that the 18-month period that was given in November 2020 to make a decision on the matter remains in force.

However, it has recognized that it would be a way to crystallize the value of the subsidiary. “We are seeing opportunities,” he said.