Repsol, a Spanish oil company, increases payouts and targets for oil production but reduces investment

Spanish?energy group Repsol announced on Tuesday that it would give its shareholders between 30 and 40 percent of the cash flow generated by its operations until 2028 through dividends and share buybacks. It also pledged to increase oil production while reducing investments.

This move is in line with recent strategic plans of the company, which placed a priority on shareholder returns.

Repsol plans to distribute 3.6 billion euro ($4.2 billion) as cash dividends and buybacks in order to achieve its target. The dividend per share is expected to increase by?around 6 percent annually.

The previous plan had a range of 25 to 35 percent.

Repsol is planning to'reduce its investments in the coming years after years of large capital expenditures. It will focus more on its upstream businesses and slow down low-carbon ones.

The company expects its net production to reach 600,000 barrels equivalent of oil per day in 2028, which is a 10% rise over 2025. This guidance excludes any possible increase in Venezuelan production.

The company expects to invest between 7.5 and 9 billion euro in?net investment through 2028. The previous multi-year plans ranged from 16 to 19 billion euros. Around 30% to 30%?will be allocated to upstream businesses, which is a greater share than the previous plan. Another 30% will go to low-carbon enterprises, a decrease from around 35%.

It said that cash flow from operations would increase to 6.5 billion euros by 2028. This is a 20% increase from 2025.

Repsol's CEO Josu Imaz stated that the company has the best strategy for driving a "continued" growth in volatile markets. This is supported by an integrated business model, a balanced mix of conventional businesses and low-emission ones, and a diverse portfolio of assets.

(source: Reuters)