Repsol SA announced plans to spend as much as €850 million ($943 million) as part of a new share buyback program, adding to a string of similar moves over the past two years.
(Bloomberg) — Repsol SA announced plans to spend as much as €850 million ($943 million) as part of a new share buyback program, adding to a string of similar moves over the past two years.
The company will redeem 60 million shares, it said in a regulatory statement on Thursday. The plan includes a 50 million share buyback and the redemption of an additional 10 million held as treasury shares.
Since unveiling a strategic plan in late 2020, the company has already redeemed 250 million shares, more than originally planned.
Like many of its larger rivals, Repsol benefited from the surge in oil prices following Russia’s invasion to Ukraine, as well as from strong refining margins, allowing companies to increase remuneration to shareholders. Among the firms that have done buybacks over the past year are Chevron Corp and Shell Plc, which announced one last month.
Repsol’s shares are down 7% this year compared with a 1.15% declined for the Stoxx 600 Oil and Gas Index.
Repsol has also benefited in recent years from large minority stake sales in different units, notably the disposal of 25% of its exploration and production unit to EIG in September for $3.4 billion. The company is set to end the year with very little debt.
For Repsol, the EIG deal was the latest step in its shift away from fossil fuels. The company was the first big oil producer to announce a major strategic focus on clean-energy, in late 2019, and has since earmarked a lot of investments to renewable power.
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