Repsol aims to increase payouts and oil production this year

Repsol, the energy group, pledged to its shareholders on Thursday that it would distribute 1.9 billion euro ($2.2 billion) in dividends and share buybacks during this year. It also promised to increase production at its upstream businesses.

The Spanish company made shareholder returns one of the top priorities of its strategic plan. It aims to maintain buybacks at 700 million euro this year while increasing dividends by 7.8%, to 1.05 euros per share. The company's return last year was around 1.8 billion euros.

Repsol's plans to buy back shares contrast with those of its larger competitors TotalEnergies and BP, who have both reduced their buyback sizes or halted their buyback programmes.

The same strategic principles will guide our updated road map until 2028, said Chief Executive Josu Jon Imaz. He was referring to a strategic update the company released in March.

"Ensuring that the dividend is predictable and grows, along with buybacks, will remain fundamental in our strategy." In a conference call with analysts following the company's results, he said: "Let me emphasize this point."

In afternoon trading, shares of Repsol jumped 3.1% in Madrid.

The company set a target for a 560,000-to-570,000 barrels of equivalent oil per day (boe/d), up from 5408,000 boe/d on average last year. This 'guidance' does not include any possible increase in Venezuelan production.

The first phase Pikka Project in Alaska will?start producing in March, and reach 80,000 barrels per day by the end of the year.

Repsol's fourth quarter profit was 722 million euros, up from 36 million euros a year ago. This was due to impairments in its upstream division as well as provisions for operations in Venezuela.

(source: Reuters)