• Adjusted net income, which measures the performance of the businesses, was €1.582 billion, with positive results in all segments, driven by efficiency-oriented management while advancing in the transformation of the company to achieve net zero emissions by 2050.
• Repsol posted a net income of €1.939 billion in the first nine months of 2021, which is higher than in the same period in 2019, prior to the pandemic.
• Thanks to its integrated business model and the implementation of its 2021-2025 Strategic Plan, the company was able to take advantage of the increase in commodity prices. Through September, the company achieved positive cash flow in all segments and reduced its net debt by 9%, compared to the beginning of the year
• This performance and the cash generation resulting from higher commodity prices have led the Board of Directors to propose to the next General Shareholders’ Meeting a 5% increase in the cash dividend, to €0.63 per share, together with a reduction of 75 million shares, equivalent to 4.9% of the share capital.
• After the close of the quarter, Repsol updated its ambitions to accelerate its transformation to lead the energy transition, with an increase of €1 billion in investments by 2025 to boost renewable electricity generation and renewable hydrogen production, as well as other low-carbon initiatives.
• During the first nine months of the year, Repsol implemented important industrial transformation initiatives and continued to consolidate its portfolio of renewable generation assets, an area in which it made progress in its international expansion with the agreement with Hecate Energy in the United States.

Josu Jon Imaz, Repsol’s Chief Executive Officer
“Our results have returned to pre-pandemic levels, driven by our efficient management and the implementation of our Strategic Plan. At the same time, we are making firm progress in our transformation to become carbon neutral by 2050.”

Repsol posted an adjusted net income, which specifically measures business performance, of €1.582 billion between January and September 2021, the period when implementation of its 2021-2025 Strategic Plan began. The measures defined in the Plan, together with an efficiency-oriented management, have allowed the company to capture the maximum possible value and return to pre-pandemic results in a context in which there has been a clear recovery in raw material prices. At the same time, the company has made steady progress toward achieving its decarbonization targets, recently reinforced with new, more ambitious goals that mark its transformation to carbon neutrality by 2050. 

Net income was €1.939 billion between January and September 2021, higher than in the same period in 2019 (€1.466 billion), prior to the COVID-19 crisis. Adjusted net income was flat compared to 2019 (€1.637 billion), demonstrating the effectiveness of Repsol's new strategy. Results for the third quarter beat the consensus of financial analysts who follow the company's activity.

Repsol's integrated business model, together with the implementation of its Strategic Plan, was decisive in enabling the company to successfully overcome an unprecedented crisis scenario. All business segments achieved positive results, especially Exploration & Production, particularly influenced by the upward trend in commodity prices. The Chemicals area continued the exceptional performance observed in previous quarters, Renewables increased its contribution to the Group, and the Mobility and Aviation businesses improved their performance after the lifting of part of the mobility restrictions resulting from the health crisis.

In the first nine months of the year, crude oil and gas prices returned to pre-pandemic levels, with Brent crude trading at an average of $67.90 per barrel and the Henry Hub at $3.20 per MBtu.

In this context, the company also achieved positive operating cash flow in all its business segments, amounting to €3.371 billion, as well as positive free cash flow in all segments, totaling €1.855 billion. In addition, between January and September 2021, Repsol reduced its net debt by 9% (€642 million) compared to last December, to €6.136 billion. As a result, liquidity stood at €9.948 billion, representing 2.57 times the short-term maturities.

In 2021, the company strengthened its financial position with various bond issues and presented a comprehensive sustainable financing strategy, incorporating its sustainability roadmap into its financing strategy. 

These tools will enable Repsol to continue advancing its ambitious decarbonization goals, as it has done even in the complicated environment caused by COVID-19. In this regard, Repsol went a step further on October 5, increasing its renewable generation and emissions reduction targets to accelerate its transformation until 2030. The company also announced an increase in investments in the 2021-2025 period to €19.3 billion, with an additional €1 billion compared to the initial forecast in the Strategic Plan that will be dedicated to increasing the company’s renewable electricity generation capacity and production of renewable hydrogen, as well as promoting other low-carbon initiatives. With this new target, 35% of the investments made by Repsol between 2021 and 2025 will be allocated to low-emission initiatives.

Solid recovery in earnings and greater ambition in the energy transition

In the first nine months of 2021, Repsol's businesses solidly recovered their pre-pandemic profitability in an environment that once again showed results typical of the years before the global health crisis. The company has rolled out the measures established in the 2021-2025 Strategic Plan to maximize profitability. At the same time, it advances in the energy transition of its businesses, with new projects and objectives to accelerate this transformation.

The Exploration and Production business achieved an adjusted net income of €1.063 billion between January and September 2021, which exceeded the neutral result during the same period the previous year and €864 million in 2019. This reflects efficiency improvements and the optimization of operations and costs, which positioned the business to obtain the best possible value from the increase in commodity prices. The price of Brent crude was up 65%, and the Henry Hub increased by 68%, compared to the same period last year.

In 2021, the company sold its Exploration and Production assets in Malaysia and Block 46 CN in Vietnam, as well as its participation in the Arog joint venture in Russia. Along with the closing of oil production in Spain and ceasing exploration activity in several countries, these decisions advance the company’s strategic objective of focusing on the geographic areas where it has the greatest competitive advantages, concentrating its presence in 14 countries, and prioritizing value over volume.

To make its activity, essential for the well-being of society, more sustainable, the Exploration and Production business aims to reduce the intensity of its CO2 emissions by 75% in the period 2021-2025. Carbon capture and storage will play a key role in developing new projects, with projects such as Sakakemang in Indonesia that will be among the largest of its kind in the world.

Commercial and Renewables

The Commercial and Renewables business posted a result of €397 million, 20% higher than the €332 million earned in the same period the previous year. The Mobility and Aviation areas improved their performance after the lifting of severe restrictions on mobility due to the global health crisis coupled with strong performance in Renewables and Low-Carbon Generation. 

The company continued to reinforce its commitment to more sustainable mobility, making use of digitalization and putting the customer at the center of its decisions. In the field of electric charging, Repsol recently announced that it will have more than 1,000 public charging points in Spain by the end of 2022 and fast or ultrafast charging points every 50 kilometers on the country's main routes.

KeyFacts Energy: Repsol Spain country profile