The Spanish energy company Repsol announced a new share buyback program after reporting a 14% year-on-year increase in profit in the first half of the year, despite the drop in gas and oil prices.
The Spanish giant generated a total net profit of 1.626 billion euros ($1.763 billion) between January and June, compared to 1.420 billion euros in the first half of 2023, according to the results published by the company.
Its adjusted profit, an indicator that more precisely measures the company's performance and is a reference for investors, decreased by 22% to 2.126 billion euros ($2.300 billion).
This decline is explained by the decrease in gas prices and refining margins, the group stated in a press release, noting that it has been transitioning towards a "multi-energy" model beyond crude oil for several quarters.
Despite the challenges in the hydrocarbon sector, "Repsol has once again achieved solid operational and financial performance this quarter," said the company's CEO, Josu Jon Imaz, in a statement.
In light of these results, the group indicated that it will distribute a dividend of 0.90 euros per share to its shareholders in 2024, 30% more than the amount paid last year.
It also plans to implement a new buyback program of 20 million shares this year, in addition to the 40 million shares already acquired in mid-July.
Share buyback programs, which several groups have been implementing in recent quarters, allow for reducing a company's capital and mechanically increasing shareholder remuneration.
Repsol, which has embarked on a strategic shift in recent years to move away from an oil-based model, specified that it has invested 1.608 billion euros ($1.740 billion) since January in low-carbon energy.
These investments, combined with the share buyback programs, have weighed down its net debt, which now stands at 4.590 billion euros, or 797 million more than a year ago.
In total, the Spanish group plans to invest between 16 billion and 19 billion euros by 2027, of which 60% will be in the Iberian Peninsula and 35% in low-carbon projects.
