Repsol launches its 2.29% share repurchase program for up to 756 million

The progress of business and the generation of cash from the prices of raw materials could allow a dividend increase of 5%.

The president of Repsol, Antonio Brufau.

Repsol has agreed to launch a new share repurchase program for up to a maximum of 2.29% of its share capital, the maximum amount of which will amount to 756.7 million euros, the company informed the National Securities Market Commission (CNMV).

On October 27, the board of directors of the multienergetica company agreed to implement this share repurchase program for up to 35 million shares, representing 2.29% of Repsol’s share capital, in order to improve its cash dividend.

The progress of the businesses and the generation of cash derived from the scenario of higher commodity prices will thus allow the group to propose to its next Ordinary General Shareholders’ Meeting a improvement of the cash dividend of 5% to 0.63 euros per share. Also a reduction of share capital, through redemption of 75 million treasury shares, equivalent to 4.9% of the company’s current capital.

The acquisition of the shares will be made at market price in accordance with the price and volume conditions. In particular, regarding the price, Repsol will not buy shares at a price higher than the highest price of the last independent operation; or the highest independent offer of that moment in the trading centers where the purchase is made.

In regards to trading volume, the company will not buy more than 25% of the average daily volume of its shares in the trading venue where the purchase is made.

The average daily volume of the company’s shares for the purposes of the above calculation will be based on the average daily volume traded in the twenty business days prior to the date of each purchase.

The buyback program will start next November 10 and will remain in effect until December 31, 2022. However, Repsol reserves the right to terminate the program if, prior to its expiration date, its purpose has been fulfilled and, in particular, if it has acquired under it the maximum number of shares for an acquisition price that reaches the amount of the maximum investment, or if any other circumstance occurs that so advises or requires it.