Repsol - $REP.SM

What is Repsol’s History?

Repsol S.A., through subsidiaries, explores for and produces crude oil and natural gas, refines petroleum, and transports petroleum products and liquefied petroleum gas (LPG). The Company retails gasoline and other products through its chain of gasoline filling stations. Repsol’s petroleum reserves are in Spain, Latin America, Asia, North Africa, and the Middle East and United States.

What Repsol is doing in more details?

Repsol is a global multi-energy provider that has an integrated business model that ranges from oil and gas exploration and production to the commercialization of energy solutions for the home and mobility. The company sells its products in more than 95 countries and serves approximately 24 million customers.

Where Repsol is Operating?

Repsol has revised the definition of its operating segments in 2020 to bring it into line with the renewed strategic vision of the businesses and with the company’s commitment to be CO2 neutral by 2050.

The company’s reporting segments are: Exploration and Production; Industrial; and Commercial and Renewables.

The Exploration and Production segment include activities for the exploration, development and production of crude oil and natural gas reserves.

The Industrial segment includes refining activities, petrochemicals, trading and transportation of crude oil and oil products, and sale, transportation and regasification of natural gas and liquefied natural gas (LNG).

Commercial and Renewables segment integrates the businesses of low-carbon power generation and renewable sources, sale of electricity and gas, mobility and sale of oil products, and liquefied petroleum gas (LPG).

The company’s commercial and renewables business activity accounted for the largest share (80%) in the company’s total revenue, followed by industrial and upstream business activities.

Where is the geographical reach of Repsol?

Repsol sells its products in over 95 countries and has seven industrial complexes in Spain, Portugal, and Peru.

What is Repsol’s Sales and Marketing Strategy?

The company serves 24 million customers, with 1.2 electricity and gas customers. Repsol also operates more than 4,600 service stations in Spain, Portugal, Peru, and Mexico.

What is Repsol Financial Performance?

The company’s sales decreased to ?32.9 billion in 2020, compared to ?49 billion in the prior year.

The reduction in revenue in 2020 is explained by the economic impacts of the COVID-19 pandemic and, in particular, a decline in realization prices and production volumes in the assets of the Exploration and Production segment, mainly the US, Brazil, Norway and Algeria, lower activity in industrial complexes due to slack demand for oil products, and a drop in sales in the commercial businesses as a result of the decline in demand due to mobility restrictions.

Repsol reported a net loss of ?3.3 billion in 2020.

Cash held by the company at the end of 2020 increased by ?1.4 billion to $4.3 billion, compared to ?2.9 billion in the prior year. Cash provided by operations was ?2.7 billion, while investing activities provided ?222 million. Financing activities used ?1.6 billion.

What is Repsol Future Strategy?

In November 2020, Repsol unveiled a new strategic plan, the 2021-2025 Strategic Plan (21-25 SP). This will shape the transformation of the company in the coming years, involving an accelerated energy transition by a profitable and realistic pathway that ensures profitability, secures the future and creates maximum value for stockholders.

This comprises two periods: the first (2021-2022) will focus on ensuring financial robustness and will thus prioritize efficiency, investment reduction and capital optimization, while developing projects to lead the energy transition; the second (2023-2025), once the impact of the COVID-19 crisis is behind us, will focus on accelerating transformation and growth.

The Plan envisages investments totaling 18.3 billion euros. Investments in low-carbon initiatives will come to 5.5 billion euros from 2021 and 2025, or 30% of the total.

To implement the Plan, the organization will evolve by deploying four business areas (Upstream, Industrial, Customer and Low Emission Generation Businesses), supported by a more flexible and efficient Corporate division, thus enhancing performance and value creation.

What are Repsol’s Mergers and Acquisitions?

In early 2021, Repsol signed an agreement to acquire 40% of Hecate Energy, a US-based PV solar and battery storage project developer.

The transaction is Repsol’s first foray into the US renewables market and complements the company’s capabilities and portfolio and adds a solid platform with strong growth potential.

What is Repsol’s History?

The Repsol Group emerged during Spain’s negotiations to join the European Union, named after REPESA’s premium lubricant brand, Repsol.

It was created in 1987 by the National Hydrocarbons Institute during the reorganization of the Spanish energy sector. The company went fully private in 1997.

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