Repsol (REP) investor relations material

Executive summary

• Delivered strong Q2 and H1 2026 results amid volatile commodity markets and geopolitical disruptions, including conflicts in Iran, Ukraine, and the Strait of Hormuz, impacting global oil supply and refining capacity.

• Adjusted net income for Q2 2026 was €1.8 billion, up 207% year-over-year; H1 adjusted net income reached €2.711 billion, up 135% year-over-year.

• Strategic milestones included first oil at Pikka in Alaska, asset rotation in renewables, and new agreements in Venezuela.

• Shareholder returns increased, with dividends up 8% and share buybacks totaling up to €850 million, with a third program to be announced.

• Maintained focus on security of supply, cash flow growth, disciplined capital allocation, and supporting customers.

Financial highlights

• Q2 adjusted net income: €1.8 billion; H1 adjusted net income: €2.711 billion (+135% YoY); net income: €2.201 billion (+265% YoY).

• Q2 cash flow from operations: €1.9 billion, up 24% YoY; H1 total €3 billion; CFFO ex-WC: €1.8 billion in Q2.

• Net debt at quarter end: €3.7 billion, down €1.1 billion from March.

• Adjusted EBITDA: €3.522 billion in Q2; €6.135 billion in H1.

• Taxes paid: €6.602 billion in H1 2026 (effective tax rate 54%).

Outlook and guidance

• Full-year 2026 production expected at 560,000–570,000 boe/d, with production exceeding 580,000 boe/d in early July.

• Refining margins expected to remain strong through 2027, supported by inventory replenishment and resilient demand.

• Shareholder remuneration targeted at 30–40% of CFFO, with a third buyback program to be announced in October.

• Full-year net CapEx projected at €2.7 billion; organic investments of €8.5–10 billion planned for 2026–2028.