Repsol (REP) Q3 2024 earnings summary

Executive summary

• Adjusted income for Q3 2024 was €558M, down 49% year-over-year and 35% sequentially, mainly due to weaker refining margins and Libya production interruptions.

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

• Cash flow from operations reached €1.5B in Q3 2024, up 16% year-over-year and 63% sequentially, with accumulated operating cash flow to September at €4.7B.

• Net debt increased to €5.5B at quarter-end, up from €2.1B at December 2023, mainly due to investments, dividends, share buybacks, and the Spanish energy levy.

• 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 60M shares to be redeemed in 2024.

Financial highlights

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

• EBITDA for Q3 2024 was €1,421M, down 50.8% year-over-year.

• Cash flow from operations: €1.5B in Q3, up 16% year-over-year; 9M24 CFFO: €3,792M.

• Net CapEx to September: €4.9B; gross CapEx for 2024 expected at €6.5B; strategic CapEx for 2024–2027 at €16–19B.

• Net debt at quarter-end: €5.5B, gearing at 16.4%.

Outlook and guidance

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

• 2024 cash flow from operations guidance revised down to €6B, with net CapEx of ~€5.5B.

• Shareholder remuneration to remain within 30%-35% of CFFO, with a 3% dividend increase planned for 2025 and 60M shares to be redeemed in 2024.

• Dividend per share for 2024: €0.9, a 30% increase year-over-year; approved €0.475/share dividend for January 2025.

• Strategic CapEx for 2024–2027 remains €16–19B, with focus on profitable energy transition.