Repsol earmarks almost $1 billion for another buyback

Spanish oil company Repsol said that it will spend up to 850 million euros ($943.84 million) to buy back 60 million shares before the end of the year.

The energy giant, which like its European peers last year benefited from high oil and gas prices, has used the windfall to boost payouts for shareholders and sharply cut its net debt.

Once completed, this buyback will take the overall amount of shares the company has repurchased since the start of 2022 to 310 million, representing a capital reduction of 20.3%. This is well beyond the 200 million shares it pledged to buy back through 2025 in its strategic plan.

Separately, the company released its results for the second quarter, which - as expected - were hit by lower energy prices.

The adjusted profit for the period was 827 million euros, down from 2.16 billion euros a year earlier, when oil and gas prices, as well as refining margins, were much higher.

Analysts had expected an adjusted profit of 706 million euros, according to a consensus forecast provided by the company.

Net profit declined to 308 million euros from 1.15 billion euros in the same quarter last year.

"After achieving all the main goals set out in our Strategic Plan two years ahead of schedule, we are going to present Repsol's Strategic Update in the first quarter of 2024," Chief Executive Josu Jon Imaz said.

Repsol's net debt stood at 797 million euros at the end of June, down 83 million euros from March.