Published by Global Banking & Finance Review®
Posted on February 20, 2025
2 min readLast updated: February 27, 2026
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Repsol plans to boost its dividend and reduce investments in 2024, focusing on shareholder rewards and renewable energy expansion.
By Pietro Lombardi
MADRID (Reuters) - Spanish energy company Repsol <REP .MC> promised on Thursday to ramp up its dividend and buy back shares worth at least 700 million euros ($729.8 million) this year, funding the plans from increased cash flow and lower investment.
Like larger oil industry peers, Repsol has been hit by a significant decline in refining margins amid weaker global economic activity and as new refineries come online.
Its net profit fell 45% in 2024 to 1.8 billion euros, hit by lower oil, gas and electricity prices and a sharp drop in oil refining margins.
The higher dividend is a pillar of the company's broader strategy, and CEO Josu Jon Imaz has said repeatedly that rewarding shareholders is a priority. A year ago, Repsol pledged to buy back up to 5.4 billion euros in shares from 2024-2027.
On top of the share buy-back announced for this year, Repsol said shareholders would get 0.975 euros a share paid out of the 2024 results, an 8.3% increase from the 0.90 euros a year earlier.
Overall remuneration will thus be within the company's target of 30% to 35% of cash flow from operations, which for 2025 is seen at between 6 billion euros and 6.5 billion euros.
In 2024, it was 5.4 billion euros.
Repsol's net investment for the year will not exceed 4 billion euros, down from the 5.7 billion euros of 2024.
As part of its pivot towards low carbon businesses, the company said it plans to increase its renewable capacity - currently standing at almost 3.7 gigawatt (GW) - adding more than 1.5 GW of renewable capacity in Spain, the U.S. and Chile.
Repsol's shares traded 4.8% higher at 0832 GMT.
($1 = 0.9590 euros)
(This story has been corrected to clarify that the CEO's name is Josu Jon Imaz, not Josu Jon Imam, in paragraph 4)
(Reporting by Pietro Lombardi; Editing by Inti Landauro and Helen Popper)
The main topic is Repsol's plan to increase its dividend and reduce investments in 2024.
Repsol will fund the dividend increase through increased cash flow and reduced investments.
Repsol plans to expand its renewable energy capacity by adding over 1.5 GW in Spain, the U.S., and Chile.
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