Repsol (REP) Q4 2024 earnings summary

Executive summary

• Adjusted income for 2024 was €3.327 billion, down 34% from 2023, with net income at €1.756 billion, a 45% decrease, reflecting lower oil, gas, and electricity prices, and moderate refining and chemical margins amid market volatility.

• Shareholder remuneration increased by 30% to €0.90 per share, totaling €1.9 billion (31% of operating cash flow), with 60 million shares redeemed, about 5% of share capital.

• Maintained a strong balance sheet: year-end net debt at €5.0 billion, gearing at 14.7% (2.4% excluding leases), and liquidity covering 3.5x short-term debt.

• High investment activity with €5.7 billion net capex in 2024, supporting upstream development and renewables expansion.

• Strategic progress included the launch of the first industrial-scale 100% renewable fuels plant in the Iberian Peninsula and expansion of renewable fuel distribution.

Financial highlights

• Adjusted income: €3.327 billion in 2024 (down from €5.011 billion in 2023); net income: €1.756 billion (down from €3.168 billion in 2023).

• Operating cash flow reached €6.3 billion, exceeding guidance; net capex after disposals at €5.7 billion.

• Total liquidity at year-end was €9.5 billion, 3.5x short-term debt.

• Tax contribution in Spain was €8.427 billion, 68% of the group’s total tax payments.

• Inventory effect and special items negatively impacted reported net income.

Outlook and guidance

• 2025 cash flow from operations projected at €6-6.5 billion, net capex €3.5-4 billion, and total capex €9.5-10 billion for 2024-2025.

• Oil price assumption at $75/bbl, Henry Hub at $3, refining margin indicator at $6/bbl.

• Production guidance for 2025: 530,000-550,000 boe/d, expected at the high end of the range.

• Shareholder distributions to be 30%-35% of cash flow from operations, with a cash dividend of €0.975/share (+8.3% YoY) and at least €700 million in share buybacks.

• Over 1,500 MW of new renewable capacity expected to be added in 2025; renewable capacity target for 2027 moderated to a maximum of 9 GW.