Repsol has beaten the red numbers and returned to pre-pandemic results levels with a net profit of 2,499 million euros last year, compared to losses of 3,289 million euros in 2020, thanks to the implementation of the 2021-2025 strategic plan and. An integrated business model,” the company says in a statement to the CNMV. The adjusted net result, which measures companies’ performance, was 2,454 million in 2021, with positive numbers across all business sectors accelerating the decarbonization goals of zero net emissions. .
Repsol’s net debt decreased by 15% as a result of higher operating cash flow, and a significant improvement in EBITDA, which tripled in 2021, to €8,170 million. Liquidity at the end of the year amounted to 10,066 million, enough to cover 2.95 times the maturities of short-term debts.
Repsol highlights good performance in the E&P area, with a score of €1,687 million “supported by management that prioritized value over volume and increased raw material prices”. In this business, influenced by the upward trend in raw material prices and efficiency measures implemented, “value trumps scale,” according to the company, reducing the number of countries in which it is present to 15, with the aim of concentrating activity in areas where there are competitive advantages. The average production was 572 thousand barrels of oil equivalent. Consistent with a highly selective exploration campaign, hydrocarbon discoveries have been made in the United States, Mexico, Indonesia and Bolivia,
The industrial business received a result of 606 million euros, in the environment of a gradual recovery in demand. Higher sales and the contribution of low-carbon generation after new projects came into operation led to an improvement in the outcome in the commercial and renewable energy sector, by up to €542 million.
Thanks to a strong financial position, and rising raw material prices, Repsol’s board of directors will propose to the general meeting to improve its cash dividend by 5% to 0.63 euros per share this year, along with a reduction of 75 million shares, equivalent to 4.91%.
The company led by Josu Jon Imaz, Repsol, has reached pre-pandemic levels, both in results and in cash generation from the business, allowing for significant net debt reduction and promotion of renewable projects. The adjusted net result, which specifically measures business progress, was the aforementioned €2,454 million in 2021, compared to €600 million in the previous year, and above the €2,042 million obtained in 2019, the year before the Covid crisis. 19. The good development became evident in the fourth quarter, where the adjusted net result was €872 million.
Brent is trading at an average of $70.9 per barrel per year, with a significant increase compared to the beginning of 2021, and Henry Hebb, at $3.9 per MBtu. The recovery in sales in the field of mobility and aviation, once the restrictions caused by the pandemic were overcome with the gradual recovery in fuel demand, the greater contribution of renewables and low carbon dioxide generation to the group also boosted the results.
Operating cash generation was €5,453 million, an increase of 70% over the previous year, driven by earnings before interest, tax, depreciation and amortization that increased significantly across the business, to €8,170 million mentioned above. Free cash flow increased 43% to €2,839 million thanks to the exploration and production business.
Last year, Repsol increased its investment by 30% to 2,994 million euros, of which 829 million went to business and renewable energy. Repsol was the first company in its sector to offer a comprehensive framework that includes both instruments aimed at financing specific projects (green and transitional), as well as those linked to the company’s sustainable commitments (sustainability-linked bonds or SLB, for its acronym in Spanish).
In 2021, Repsol issued a Eurobond issue linked to sustainability goals, the first in Spain, in the amount of 1250 million euros, as demand exceeded supply several times, indicating investor interest. In parallel, it announced in the second half of the year an increase in its renewal and emissions reduction targets. Specifically, it announced an increase in investment for the 2021-2025 period, to reach 19,300 million euros, in addition to the 1,000 million euros more than initially planned, an increase dedicated to renewable energy generation, zero-emission hydrogen production and the promotion of other forms. Low carbon initiatives. 35% of the investments will go to low-emissions initiatives.