• Repsol posted net income of €1.42 billion in the first six months of 2023 amid falling energy prices and demand, while the company continued to take decisive steps in its transformation and in launching an innovative multi-energy offer for its customers.
• The increase in production, the efficiency of the refining business and greater customer acquisition and loyalty, mainly through the Waylet app, led to strong earnings.
• Between January and June, Repsol invested €3.047 billion, mainly in Spain and the United States. In 2023, the company will allocate 35% of its investments to low-carbon projects. The fiscal contribution stood at €7.343 billion in the first half of the year.
• Repsol paid a final dividend of €0.35 gross per share in July. Together with that paid in January, this brought the cash dividend for the year to €0.70 gross per share, 11% more than in the previous year.
• Repsol yesterday approved a new capital reduction through the redemption of 60 million own shares, in addition to the 50 million shares already redeemed in June.
• The combination of dividends and capital reduction will result in the distribution of close to €2.4 billion to shareholders in 2023. By the end of the current year, Repsol will have reduced its share capital by 20% compared to that existing at December 2021, well above the target set by the 2021-2025 Strategic Plan.

Josu Jon Imaz, CEO of Repsol:
"We are consistently delivering strong earnings in challenging environments as we continue to transform the company and build a unique multi-energy offering that facilitates a just transition for our customers."

Repsol posted net income of €1.42 billion euros in the first half of 2023, driven by increased production, integrated management of the refining system in Spain and progress in customer acquisition and loyalty, especially through the Waylet app. Adjusted income, which specifically measures the performance of the businesses, stood at €2.718 billion between January and June.

The first half of 2023 saw slow growth in the world economy, marked by monetary policy decisions and international tensions resulting from the war in Ukraine. In this context of uncertainty, global inflation and slow recovery of the Chinese economy, energy product prices plummeted compared to 2022, when there was an anomalous rise in commodity prices. Between January and June, refining margins fell by 29%, Brent crude oil prices fell by 26% and the US gas benchmark, the Henry Hub, fell by 54%.

In this environment of normalization of energy prices and supply, after a turbulent 2022, Repsol's performance reflects the robustness of the 2021-2025 Strategic Plan and the company's integrated model, which has materialized in strong earnings.

Progress in transformation: Renewable fuels and low-carbon generation

During the first six months of 2023, Repsol continued to make progress in its transformation and decarbonization process, with the aim of becoming a net zero-emissions company by 2050.

The group invested €3,047 million in the period, mainly in low-carbon projects. In line with its Strategic Plan, Repsol has earmarked 35% of investments in 2023 to low-carbon projects, which emphasizes their transformational nature. During the first half of the year, 43% of total investment went to Spain and 39% to the United States.

One of the main levers of its emissions reduction strategy is the transformation of industrial facilities into decarbonized multi-energy centers capable of generating products with a low, neutral, or even negative carbon footprint. To this end, Repsol has launched several initiatives, including the production of renewable fuels from alternative raw materials such as vegetable oils, used cooking oils and biomass, as well as the implementation of new technologies for processing solid urban waste.

During the semester, Repsol became the first company to serve 100% renewable fuel in the Iberian Peninsula, after launching the supply of 100% renewable diesel in ten service stations in Spain and Portugal. It was also a pioneer in the collection of used cooking oil at its service stations in the Community of Madrid, to facilitate the sustainable processing of this domestic waste.

In addition to this, progress was made in the construction in Cartagena of the first plant on the Iberian Peninsula dedicated exclusively to the production of renewable fuels, which will be commissioned this year.

To promote the use of renewable fuels in mobility, Repsol has forged alliances with leading companies in both heavy road and passenger transport. It has also signed agreements with airlines and the maritime sector, as well as with institutions and regional governments. During the first half of the year, the company continued to make progress in this area and has formed new alliances with leading companies such as Ryanair, Vueling and Gestair for the supply of sustainable aviation fuels (SAF); a pioneering pilot project with Iberia Airport Services to supply 100% renewable fuel for handling activities at Bilbao airport; and a collaboration with New Holland to evaluate its use in agricultural machinery. It has also signed an agreement with transport and logistics company XPO for the supply of one million liters of renewable fuel.

In the chemicals business, construction began in March on the project to expand the industrial complex in Sines, which includes the installation of two new plants that will produce 100% recyclable materials that can be used in highly specialized applications in industries such as pharmaceuticals, automobiles and food.

Renewable electricity generation is another of Repsol's fundamental energy transition pillars. During the first half of the year, the company has taken significant steps towards reaching the target of 6 GW in 2025 and 20 GW in 2030, with the incorporation of Asterion Energies' portfolio of renewable assets (7,700 MW) and the start of projects under development in Italy, in addition to the progressive commissioning of new facilities in Spain, the United States and Chile. In total, a renewable capacity in operation of 2,016 MW has been reached.

Institutional and financial backing for the investment and transformation strategy

Repsol's transformation strategy to achieve zero net emissions has been backed by a number of institutions. Last April, the Official Credit Institute (ICO) signed a €300 million loan linked to sustainability criteria and focused on the evolution of Repsol's industrial facilities into multi-energy poles. For its part, the IDAE granted €25 million in aid for the construction of a 30 MW electrolyzer in Puertollano and another in the old thermal power plant of Meirama (A Coruña).

In addition, in mid-July, the 150 MW electrolyzer in Tarragona, the largest in Spain, was selected to receive funding from the European Union. It will receive €63 million under the third call of the Innovation Fund, one of the world's largest programs for the development of innovative low-carbon technologies. This project is in addition to others led by Repsol, which had already been awarded funding in previous calls for proposals under this program, such as the Ecoplanta, which will also be in Tarragona, Spain.

For its part, the European Investment Bank (EIB) this week granted a €575 million loan to Repsol for the deployment and commissioning in Spain of wind farms and photovoltaic plants with a total capacity of 1.1 GW. These electricity production facilities are expected to be operational before the end of 2025.

Support for the company's management was also made tangible with the upgrade of Repsol's rating announced by Fitch Ratings on June 1. The U.S. agency raised the company's long-term credit rating to BBB+, with a stable outlook, and increased its short-term rating to F-1. With this decision, which endorses Repsol's solid financial profile, Fitch aligned itself with the other two major agencies in the market, S&P and Moody's, which made upward revisions to their ratings at the end of 2022.

KeyFacts Energy: Repsol Spain country profile