Repsol shareholders back the agreement between the Government of Argentina and the company

Repsol’s Annual General Meeting approves YPF compensation agreement

Press Release 28/03/2014 00:00
  • Repsol’s Annual General Meeting today ratified the “Convenio de Solución Amigable y Avenimiento de Expropiación” which recognises the company’s right to receive $5 billion as compensation for the expropriation of the 51% shareholding in YPF and YPF GAS, together with payment guarantees.
  • With the ratification of Repsol’s Annual General Meeting, the agreement is subject to the approval by the National Congress of Argentina.
  • Antonio Brufau: “We have worked very hard to obtain a just compensation. Our efforts have been rewarded with a guaranteed agreement that creates value for our shareholders and strengthens the company’s financial position. Today we embark on a new phase, full of hope and growth prospects for Repsol.
  • The AGM approved Repsol’s 2013 earnings, during which the company posted a recurring net income of 1.823 billion euros at current cost of supply, increased hydrocarbons production by 4% and achieved a record reserve replacement ratio of 275%, the highest in the industry worldwide.
  • Over the last year Repsol has continued to strengthen its international presence in OECD countries, acquiring exploration assets in the United States and Norway. The company also made nine important discoveries, achieving an exploration success rate which exceeded that of its peers.
  • Repsol’s market value gained 19.5% in 2013, beating the average rise of international oil companies (10.4%). In addition, the agreement reached in relation to YPF was applauded by international financial analysts, 94% of whom have “buy” or “hold” recommendations for Repsol shares.
  • Bearing in mind the dividends paid and the increase in share price, the returns for Repsol shareholders during the last year increased by 26%, considerably more than the industry’s average (15%.)
  • In line with the policy that has been followed in recent years, the AGM approved two proposals for a paid-up capital increase to maintain the “Repsol Flexible Dividend” program as a way of remunerating shareholders, a program which is backed by the majority of shareholders.
  • The AGM approved the re-election of Paulina Beato Blanco, Artur Carulla Font, Javier Echenique Landiríbar, Henri Philippe Reichstul and Pemex Internacional España, S.A. as members of the Board of Directors.
  • The AGM also voted to change the company’s bylaws and shareholders´ meeting regulations to incorporate measures that reinforce the necessary majority in key decisions and protect the integrated development of the company’s business units.
  • Brufau highlighted that “the structural reforms adopted by the Government have been key to Spain’s changing economic situation, resulting in renewed trust from both foreign and domestic investors.”

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