Repsol strengthens its position as a multi-energy provider
Total installed capacity
Retail electricity and gas in Spain
Repsol today incorporated the non-regulated, low-emissions power generation assets of Viesgo, as well as its retail customers, to become a relevant player in the Spanish electricity market.
After obtaining all the necessary regulatory authorizations, Repsol completed the process with the signature of the final agreement, which set the price of the transaction at 733 million euros. With these assets Repsol strengthens its position as a multi-energy operator, with a total installed capacity of 2,950 MW (2,350 MW from this transaction and 600 MW from its existing cogeneration plants).
In addition, the company significantly increases its presence in the retail electricity and gas sector in Spain, with a market share greater than 2% and more than 750,000 customers. This constitutes a key step for the implementation of Repsol’s roadmap for the energy transition, which includes the objective of acquiring a retail electricity and gas market share greater than 5% and 2.5 million customers by 2025.
The electricity and gas business will be developed through its new subsidiary, Repsol Electricdad y Gas. Starting today, it will provide a attractive offers, cutting-edge digital solutions and exclusive benefits for customers throughout Spain such as discounts at Repsol’s network of service stations. In addition, the electricity sold by the company, using the Repsol brand, will be certified as 100% low-emissions.
The company has appointed María Victoria Zingoni as Chairwoman of Repsol Electricidad y Gas. She will carry out this role in addition to her responsibilities as Executive Managing Director of Repsol’s Downstream unit. The CEO of the subsidiary will be Francisco Vázquez, who until now was the Executive Director of Repsol Refining. Repsol Electricidad y Gas will have its corporate headquarters in Santander (Spain) and employ more than 400 qualified workers with experience in the sector, mainly from Viesgo.
The new company, which has ambitious growth plans, will take on the operation of the non-regulated assets acquired from Viesgo. These include modern and efficient hydroelectric power generation and combined-cycle gas turbines. Repsol Electricidad y Gas now owns hydropower plants with an installed capacity of 700 MW, located in northern Spain and with great potential for organic growth. It also owns two combined-cycle gas plants in Spain: one in Algeciras (Cádiz), built in 2011, and another in Escatrón (Zaragoza), built in 2008, with a combined capacity of 1,650 MW. These assets add to the Repsol’s existing cogeneration plants in major industrial facilities.
Repsol Electricidad y Gas joins the sector as an operator with a long-term industrial vision aiming to invest and create new opportunities. The new company increases competition in the Spanish sector that will benefit consumers. It has existing customers throughout Spain, mainly in Cantabria, Galicia, Andalusia, Asturias, Castile and León and the Community of Madrid. The company will use its existing sales channels, including its more than 3,400 service stations in Spain, for customer offerings, leveraging the strength and recognition of the Repsol brand.
With the addition of these assets, Repsol is advancing toward its goals for the development and operation of a low-emissions business in the electricity sector.
Investments in this area will total 2.5 billion euros between 2018 and 2020, including the 733 million euros allocated to this transaction. Repsol’s goal is to have 2.5 million retail gas and electricity customers in Spain by 2025, with a market share above 5% and a low-emissions generation capacity of approximately 4,500 MW.
Repsol recently acquired the 264 MW Valdesolar photovoltaic project planned in the municipality of Valdecaballeros (Badajoz), which is in the permitting phase. With this acquisition, Repsol will achieve over 70% of its strategic goal of low-emissions generation capacity.
On October 19th, the company also announced its participation in the construction of one of the largest floating wind farms in the world, offshore Portugal, 20 kilometers from Viana do Castelo, which will have an installed capacity of 25 MW.
This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, 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.
Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.
This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Royal Legislative Decree 4/2015 of the 23rd of October approving the recast text of the Spanish Securities Market Law and its implementing 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.