Repsol, a Spanish company, adopts a new reporting model to grow its partnerships

Repsol released its fourth-quarter results Thursday, announcing a new reporting model that aims to better reflect the growing importance of joint ventures and minority shareholders in areas such as upstream and carbon reduction.

It said that the change would also allow it to compare its Spanish company with other firms, in quarterly disclosure documents. This is at a time where it was preparing an upstream 'unit' for a liquidity evet, which could be options such as an IPO or a reverse merger.

In 2022, Repsol signed a deal with EIG to sell 25% of its upstream business to the U.S.-based fund. The entire company was valued at around $19 billion in that time, including the debt.

In recent years it has sold'minority stakes' in renewable projects, to companies like?Inditex founder?Amancio Ortega?s investment company Pontegadea?and U.S. investment firm Stonepeak?

The changes do not affect the consolidated financial statements and reporting segments remain unchanged. The new model will account for 'the contribution of joint-ventures' using the equity method. This replaces the old system of proportionate consolidation. (Reporting and editing by David Latona; Pietro Lombardi)

(source: Reuters)