Repsol, the Spanish energy company, has revealed its plans to launch a share buyback program and has reported a significant drop in net profit for the second quarter. The decline in sales can be attributed to lower energy prices.
Share Buyback Plan
Repsol intends to repurchase up to 50 million of its own shares, starting immediately as part of its strategy to reduce its share capital by 60 million shares. This buyback initiative is valued at approximately €690 million ($764.9 million), based on Repsol's closing price on Wednesday of €13.80.
Q2 Financial Results
During the second quarter, Repsol's net profit fell to €308 million from €1.15 billion in the same period of the previous year. However, on an adjusted basis, the company reported a net profit of €827 million, surpassing expectations of €706 million according to a consensus estimate provided by the company. This figure is lower than the €2.16 billion net profit reported in the previous year.
The decline in adjusted profit can be attributed to the performance of Repsol's industrial, upstream, and low-carbon generation segments. Conversely, earnings from the customer segment saw a significant increase.
Repsol's earnings before interest, taxes, depreciation, and amortization suffered a 65% decrease and amounted to €1.61 billion.
Sales for the period experienced a significant decline, falling from €20.93 billion in the same quarter of the previous year to €13.04 billion.