Repsol announce net income of €4.251 billion in 2022
In 2022, a year marked by uncertainty, volatility, and complex market dynamics due to the invasion of Ukraine, Repsol obtained net income of €4.251 billion, of which close to 64% came from the international business. The profits recorded in 2021 and 2022 (€6.75 billion) have not yet made it possible to offset the losses in 2019 and 2020 (€7.105 billion).
The international economic situation has led to a rise in the price of raw materials, and security of energy supply has become one of the main priorities in Europe. The integrated business model and the 2021- 2025 Strategic Plan were key to the company’s positive performance in this environment. At the same time, it drove forward its transformation, consolidating its multi-energy profile, with the goal of achieving zero net emissions by 2050.
n 2022, Repsol invested €4.182 billion to advance its transformation, 40% more than the previous year, mainly in the Iberian Peninsula and the United States. To boost its multi-energy profile, it plans to allocate historic organic investments of more than €5 billion in 2023.
The company’s integrated business model and the 2021-2025 Strategic Plan were key to a positive performance. Even so, the 2022 result – added to the €2.499 billion income in 2021 – still falls short of offsetting the losses in 2019 and 2020 (€7.105 billion).
The company has taken measures to ensure the purchasing power of its employees is maintained, implementing salary increases and extraordinary bonuses. It agreed with the unions a new Framework Agreement, retroactive to January 1, 2021. With that, the average remuneration in Spain increased by 9.4%, compared to the year before.
To help customers in an inflationary context, Repsol earmarked more than €500 million for additional fuel discounts at its service stations in Spain. The company was the first to implement these measures which are ongoing even after the end of the state rebate.
Repsol made an additional effort in 2022 to guarantee supply in Spain amid tight international markets. It allocated more than €2 billion to increase its inventories.
Repsol’s activity in 2022 resulted in the largest tax contribution in the Group’s history, more than €17 billion, of which more than 70% was paid in Spain (12 billion). Repsol is the Ibex-35 company that pays the most taxes in the country.
Cash generation enabled a 61% reduction in net debt during the year. In addition, Repsol announced an 11% increase in cash remuneration for its shareholders in 2023 and carried out the redemption of 200 million shares, benefiting more than 520,000 investors, the vast majority of whom are minority investors and based in Spain. A new share buyback program and a capital reduction will be implemented in 2023.
Josu Jon Imaz, CEO of Repsol:
“We are aware that our work is an essential service to society. For us, it is always a priority to fulfill this responsibility that emerges with even more importance, if possible, in complicated times such as those we have experienced in recent years. In 2022, we strove to guarantee supply, reduce the impact of the energy crisis on our customers, and invest in Spain’s industrial future, while continuing to strengthen our profile as a multi-energy company and making progress in decarbonization.”
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