By Pietro Lombardi
MADRID (Reuters) -Spanish energy company Repsol pledged on Wednesday to maintain its dividend payout policy, even if market conditions deteriorate in coming quarters, after reporting better-than-expected first-quarter results.
Adjusted net profit in the quarter dropped 48% from a year earlier to 651 million euros ($741 million), beating the company-provided average forecast of 642 million euros.
The above forecast results came despite oil refining margins more than halving from a year earlier, lower oil prices, a drop in margins in its chemical business and market volatility, it said.
“During the first quarter of 2025, we have laid the groundwork to meet our objectives for the year, ensuring our commitment to shareholder remuneration, optimising investments and improving our portfolio through divestments that will represent a cash inflow of around 700 million euros,” Chief Executive Josu Jon Imaz said in a statement.
The company confirmed its shareholder payout target of between 30% and 35% of cash flow from operations.
The target would stand even if market conditions deteriorate – with oil refining margins falling to $4 per barrel and with a Brent crude oil price declining to $65 a barrel.
The price of Brent crude averaged $76 a barrel in the first quarter and refining margins were $5.3 a barrel.
Should this scenario materialise, the company forecasts lower cash flow from operations and would trim investments, it said.
The company’s net profit, including items relating to provisions, divestments and inventory, fell to 366 million euros from 969 million euros in the same period last year.
($1 = 0.8788 euros)
(Reporting by Pietro Lombardi, editing by Inti Landauro and Sharon Singleton)
