One of the largest energy companies, present in the entire value chain: exploration and production, transformation, development and commercialization of efficient, sustainable and competitive energy.
We are a multi-energy company operating around the globe. Our activities range from oil and gas exploration and production to refining as well as selling derived products and providing services for your everyday life, such as natural gas and electricity.
The people on our team represent our prime competitive advantage and guarantee the company's future. A flexible and committed team comprising over 25,000 employees, united by a shared vision and values.
Our facilities are a reflection of our values and company culture. Our smart buildings promote smooth communication and transparency between team members, while allowing them to be more efficient and versatile in their work.
Our brand reflects our efficient, modern, responsible, and transparent management style which characterizes our company. Moreover, it conveys our values and builds trust.
A global, integrated company with over 90 years of history seeking to supply society's energy needs.
At Repsol, we ensure integrity in the relationships the Company maintains with its suppliers and contractors. Our suppliers are a part of our team and working together enables us to continuously evolve.
We look for energy solutions that meet people's needs and safeguard their well-being. With our solid and diversified business undertakings, we stay one step ahead of the future.
Learn about our Company's annual performance in the area of sustainability.
Our priority is to minimize the environmental impact of our activities by optimizing water management, air emissions, waste management, and spill prevention and response, in addition to considering biodiversity a key element.
We work to be part of the solution to climate change. Our challenge: responding to the demand for energy both responsibly and sustainably.
Each and every one of our decisions aims to guarantee the safety of our workers, customers, users, and suppliers. We firmly believe that all accidents can be prevented, and we develop ever-improving prevention mechanisms.
Each and every one of the actions taken by the people who make up Repsol determine the present and the future of our company. Therefore, we train our employees in core values that must govern their behavior and communicate all of our actions in a way that's reliable, transparent, and verifiable.
We are committed to managing our tax affairs by applying good practices and acting transparently. We pay our taxes responsibly and efficiently, and we foster cooperation with governments, thus avoiding serious risks and unnecessary conflicts.
We make reasonable efforts to ensure that our activities do not have negative impact on human rights, and should they occur, we do everything we can to correct them. Moreover, we do everything within our power to prevent impacts directly related to the activities of our business relationships.
Sustainability is an essential part of our forward-looking vision and the shared commitment undertaken by every one of us at Repsol.
The Repsol Technology Lab is an example of one of the most cutting-edge private R&D models in Spain, based on open innovation, whose objective is to seek sustainable solutions to achieve a more efficient and competitive lower-carbon business.
Innovation is in our DNA. That's why we've taken on the ambitious challenge of transforming the energy sector through the passion of our professionals, people who question things to make them better.
We look for industrial startups that provide disruptive reliability and maintenance solutions, particularly those related to the prediction and detection of corrosion.
Innovation, open collaboration, and a connection with the entrepreneurial world within an environment designed for co-creation. Discover our Open Innovation program.
At Repsol, innovation is part of our DNA. That's why we support education in the technical science field in order to inspire future generations.
Soluciones energéticas 100% renovables: energía solar y electricidad para particulares, empresas y entidades públicas.
Global, integrated, sustainable, and present throughout the entire value chain. These are just some of the compelling attributes that make us as an attractive company.
Useful documents to follow the company's profitability and sustainability-related measures and initiatives.
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The highest earnings in eight years
EBITDA a 12% increase
3% increase in production
One of the best refining margin indicators in Europe
Repsol posted net income of 2.341 billion euros in 2018, a 10% increase from the 2.121 billion earned in 2017 and the highest in eight years. This was achieved with average Brent oil prices at 71 dollars per barrel last year, compared with more than 111 dollars in 2011.
Adjusted net income, which specifically measures the progress of Repsol’s businesses, also increased 10% to 2.352 billion euros, exceeding the 2.131 billion recorded in the previous year.
In addition to the strength of its businesses, these results reflect Repsol’s adaptability and innovation—particularly following the implementation of the efficiency program in recent years—as well as its flexibility to incorporate and develop new capabilities. All of this has allowed the company to increase value generation while simultaneously playing a more active role as a multi-energy provider.
The company’s integrated business model allowed it to take full advantage of improved oil prices - Brent was 32% higher than in 2017 – although they remained far from their historic highs. In contrast, the Henry Hub gas benchmark averaged a price similar to last year.
In this context, the Upstream unit doubled its earnings to 1.325 billion euros, continuing the positive trend of previous years. The increase in production and rising oil prices were integral to this positive performance, as were the efficiency measures and digitalization programs, which continue to demonstrate their effectiveness.
The Downstream unit earned 1.583 billion euros, with improved performance from the commercial businesses, Marketing and LPG (liquefied petroleum gas), and positive results from Trading & Gas. The Chemicals unit was affected by a worsening international environment, maintenance shutdowns at some industrial facilities, which also affected refining, and the weakness of the dollar against the euro.
The company’s EBITDA increased to 7.513 billion euros, 12% higher than the 6.723 billion in the previous year.
The Group’s positive business performance, along with the sale of its stake in Naturgy Energy Group, led to a 45% fall in net debt to 3.439 billion euros, compared with the 6.267 billion at the end of 2017. Meanwhile, liquidity rose to 8.742 billion euros by late December.
Repsol updated its 2020 strategy last June, after meeting the objectives of the 2016-2020 Strategic Plan two years ahead of schedule. This update is based on three pillars: increasing shareholder compensation, fostering profitable growth in the Upstream and Downstream units, and developing new businesses connected to the energy transition.
In that respect, Repsol reached an agreement in June 2018 to purchase Viesgo’s non-regulated, low-emissions electricity generation businesses and its gas and electricity distributor, including 750,000 customers. With this acquisition, which was completed on November 2nd, Repsol strengthened its position as a multi-energy operator, achieving a total installed capacity of 2,952 MW (2,352 MW from this transaction and 600 MW from its existing cogeneration plants).
In the third quarter, the company also acquired the Valdesolar photovoltaic project planned in the Valdecaballeros (Badajoz, Spain), which is in the administrative permitting phase. The project will have an installed generation capacity of 264 MW. With these additions, Repsol will have achieved more than 70% of its strategic objective for a low-emissions generation capacity of 4,500 MW by 2025.
In October, the company also secured financing for the construction of one of the largest floating offshore wind farms in the world, located off the coast of Portugal with an installed capacity of 25 MW.
During the year, Repsol raised shareholder compensation to 0.9 euros/share, an increase of 15%. Additionally, it achieved a reduction in share capital through the cancellation of own shares by an amount equivalent to the shares issued in 2018 through the scrip dividends, resulting in increased earnings per share.
The company plans to raise the dividend to one euro per share in 2020, with a total repurchase of the shares issued in the Repsol Flexible Dividend program. All of this positions its shareholder compensation among the highest in the sector.
Repsol’s positive performance was reflected in the company’s improved credit rating. In October, Fitch upgraded the outlook for Repsol to “positive” with a long-term credit rating of BBB. In early December, Moody’s announced a rating upgrade to Baa1 with a “stable” outlook, and a few days later S&P Global Ratings upgraded its outlook to “positive” and confirmed the long-term credit rating of BBB.
Repsol continued to advance its digitalization program, which is being implemented throughout the organization and will increase cash flow by one billion euros in 2022, both through new income and the optimization of investments and expenses. It will also offer higher-safety processes, contribute to emissions reduction and promote circular economy initiatives.
The Upstream unit’s adjusted net income reached 1.325 billion euros, an increase of 110% over the 632 million earned in 2017.
The company’s portfolio management and the implementation of efficiency and digitalization programs boosted the unit’s earnings. An increase of 3% in production and improved realization prices were integral to this positive performance.
In terms of international benchmarks for raw materials, Brent oil increased its average price by 32% compared to the previous year, with an average annual price of 71 dollars per barrel. It reached a high of 86 dollars per barrel in October, but decreased significantly through the end of the year, falling to around 50 dollars per barrel. Henry Hub maintained an average of 3.1 dollars per million Btu, similar to the 2017 price.
Repsol’s output reached an average of 715,000 barrels of oil equivalent per day (boe/d), a 3% increase over the previous year. Gas represented 63% of production, and liquids the remaining 37%.
This increase was largely made possible by the start-up of projects including Reggane (Algeria), Juniper and TROC (Trinidad and Tobago), Monarb (United Kingdom), Kinabalu and Bunga Pakma (Malaysia) and Sagari (Peru), as well as the acquisition of the Visund field (Norway), the connection of new wells in Marcellus (United States) and an increased contribution from Libya.
These were complemented by the development of projects throughout the year that provide significant value and guarantee the sustained growth of the Upstream unit. In Brazil, the company obtained the declaration of commerciality for the Entorno de Sapinhoá, which borders the highly productive Sapinhoá block in the country’s prolific pre-salt region.
In Bolivia, the contract for the exploration and production of hydrocarbons in the Iñiguazú field was approved. This field is adjacent to the Caipipendi area, where Repsol already operates the Margarita-Huacaya field—the largest in Bolivia, producing 19 million cubic meters of gas per day.
In Norway, the company acquired in 2018 7.7% of the Visund field and at the beginning of 2019 obtained a 7.65% stake in the Mikkel field. These transactions have allowed Repsol to increase production levels in the country by 45% to 32,000 barrels of oil equivalent per day. In March of last year, the Yme field redevelopment project was approved, and in August the Gudrun field consortium—which includes Repsol—announced the discovery of gas and oil.
In 2018, Repsol began development of the Buckskin project in the Gulf of Mexico (United States), with production projected to begin in the second half of this year.
The company installed the Angelin platform in Trinidad and Tobago, which began producing gas at the end of February of 2019. Two new offshore gas projects were also authorized in the country: Cassia and Matapal. Additionally, the company approved the first stage of development of Akacias in Colombia’s CPO-9 block. It was also granted new exploration licenses in Mexico, Brazil, Norway, Greece, Indonesia, Bulgaria and the United States—specifically in the state of Alaska, where Repsol has made significant hydrocarbon discoveries
Upstream investments increased to 1.973 billion euros during the year, of which 70% was allocated to project development and 21% to exploration.
The Downstream unit posted an adjusted net income of 1.583 billion euros in 2018, compared with 1.877 billion in the previous year.
The Refining and Chemicals units were affected throughout the year by a worsening international environment and the weakness of the dollar against the euro. They were also influenced by shutdowns for maintenance and improvements at the Puertollano (Spain), Tarragona (Spain) and Sines (Portugal) industrial complexes. These improvements enabled Repsol to remain among the industry leaders in Europe, thanks to gains in efficiency, productivity and innovation.
The refining margin indicator was 6.7 dollars per barrel, similar to its 2017 value of 6.8 dollars per barrel. A significant development in refining was the inauguration of new gasoline desulfurization units at the La Pampilla refinery (Peru) in November. These units, in which 741 million dollars have been invested, will allow Repsol to produce more environmentally- sustainable and higher-quality products.
The Trading & Gas unit increased its earnings in comparison to 2017, as did the LPG unit, driven by higher sales in the Spanish market.
The Marketing unit also improved its performance, with higher earnings in Direct Sales and Aviation. During 2018, the company continued working to bring new value to its customers and to offer products and services that meet their needs. To this end, it strengthened its partnerships with prestigious companies such as El Corte Inglés, with which it is developing an expansion plan to open 1,000 Supercor Stop & Go stores at Repsol service stations in the next three years.
This project complements Repsol’s 70% share in the Kiklin digital platform, through which the company is developing its Waylet mobile app: a universal payment app that has more than a million registered users. In addition to Repsol’s network of service stations, the app can be used at many other points of sale, thanks to 2,400 signed agreements.
Repsol also launched its new car-sharing service, WiBLE, in partnership with Kia. The service began operating in Madrid in July with 500 vehicles and has already reached 70,000 customers to date.
Furthermore, in accordance with its commitment to gas as an essential resource for the energy transition, Repsol signed an agreement with Venture Global LNG for the supply of one million metric tons per year of LNG (liquefied natural gas) for 20 years.
In March, the company launched a project in Mexico through which it aims to achieve an 8-10% share in the Mexican service station market within the next five years. Repsol has already opened more than 180 service stations in the country and has signed contracts to reach 240. It has also agreed to participate in three infrastructural projects, which will add more than 750,000 barrels of total storage capacity.
Also in Mexico, Repsol began producing lubricants locally through an agreement with Mexican company Bardahl. This, the largest transaction ever carried out by the company in this unit, is a key milestone to continue with the internationalization of the business, aiming to double sales volume to 300,000 metric tons in 2021, of which 70% will be outside Spain.
Repsol also acquired the Puma Energy service stations in Peru, an operation that increased sales volume in the country by 10%.
The company invested 1.831 billion euros in the Downstream unit in 2018, compared to 805 million euros in 2017. This significant increase was driven by a commitment to new businesses, innovation and expansion of the unit.
The information included in this document is published pursuant to the provision of article 226 of the Spanish Securities Market Law.
This document contains information and statements or claims which are estimates or future projections for Repsol. Said estimates or projections may include statements regarding plans, goals, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol’s financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words “expects”, “anticipates”, “forecasts”, “believes”, “estimates”, “notices” and similar expressions. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol’s control or may be difficult to predict. Within those risks are those factors described in the filings made by Repsol and its affiliates with the Comisión Nacional del Mercado de Valores in Spain and with any other supervisory authority of those markets where the securities issued by Repsol and/or its affiliates are listed.
Unless the law requires it, Repsol does not undertake to publicly update or revise these forward-looking statements even if new data is published or new facts are produced.
Any of the resources mentioned do not to date constitute proved resources and will be recognized as such when they meet the formal criteria required by the “SPE/WPC/AAPG/SPEE Petroleum Resources Management System” (SPE-PRMS) (SPE – Society of Petroleum Engineers).
In October 2015, the European Securities Markets Authority (ESMA) published its Guidelines on Alternative Performance Measures (APMs). The guidelines apply to regulated information published on or after 3 July 2016. The information and breakdowns relative to the APMs used in this press release are included in Annex I “Alternative Performance Measures” of the Management Report corresponding to the fiscal year 2018 and the Repsol website.
This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Royal Decree 4/2015 of the 23rd of October, which approves the Consolidated Text of the Securities Market Law and its development regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.
The information contained in the document has not been verified or revised by the External Auditors of Repsol.