Repsol (REP) Q3 2024 earnings summary

Executive summary

• Adjusted income for Q3 2024 was €558 million, down 49% year-over-year, reflecting weaker refining margins and Libya production interruptions.

• Net income for Q3 2024 was €166 million, a sharp decline from €1,365 million in Q3 2023 and €657 million in Q2 2024.

• Cash flow from operations reached €1.5 billion in Q3, up 16% year-over-year and 63% sequentially, with net debt rising to €5.5 billion due to investments, dividends, share buybacks, and windfall tax.

• Shareholder remuneration for 2024 will be within the 30%-35% cash flow from operations range, with a 3% increase in cash dividends planned for 2025 and 60 million shares to be redeemed in 2024.

• Strategic focus remains on capital discipline, shareholder returns, and a profitable energy transition, with significant progress in renewables and electricity generation.

Financial highlights

• Q3 2024 adjusted income: €558 million, down 49% year-over-year; net income: €166 million, down 88% year-over-year.

• EBITDA for Q3 2024 was €1,421 million, down 50.8% year-over-year; revenue was €14,274 million.

• Cash flow from operations for Q3 2024 was €1.5 billion, up 16% year-over-year.

• Net CapEx to September: €4.9 billion; gross CapEx for 2024 expected at €6.5 billion.

• Net debt at quarter-end: €5.5 billion, up from €2.1 billion at year-end 2023.

Outlook and guidance

• 2024 average production expected at the lower end of 570,000–600,000 boe/d due to Libya disruptions.

• Full-year refining margin indicator expected around $7/bbl, with seasonal recovery in diesel margins.

• 2024 cash flow from operations guidance revised down to €6 billion, with net CapEx for 2024–2025 capped at €10 billion and total 2024–2027 CapEx expected at €16–19 billion.

• Shareholder remuneration to remain within 30%-35% of cash flow from operations, with a 3% dividend increase planned for 2025 and a minimum of €0.975 per share.

• Strategic plan targets a multi-energy approach, prioritizing renewables and maintaining oil and gas production above 550,000 boe/d until 2027.