Repsol, S.A.

Financial Performance

5Y price score: 235

10Y return: 186.6%

DATE RANGE:

EUR Per
Share

By default your notes are visible only to you.

13.2

52-week range

26.7

26.61

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

6.1 %

Dividend Yield TTM

3.9 %

Market cap

28,994

Price / Earnings TTM

8.6

Price / Book TTM

1.1

PEG TTM

0.6

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

106.5 %

212.1 %

186.6 %

Free cash flow per share growth

409.6 %

90.8 %

(21) %

Earnings per share growth

13.3 %

176.1 %

270.5 %

Founded: 1,987

Employees: 25,136

Business Summary:Repsol, S.A. operates as an integrated energy company worldwide. Its Exploration and Production segment engages in the exploration, development, and production of crude oil and natural gas reserves. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading and transportation of crude oil and oil products; and the sale, transportation, and regasification of natural gas and liquefied natural gas (LNG). Its Commercial and Renewables segment engages in the low carbon power generation and renewable sources; sale of gas and power; mobility and sale of oil products; and liquified petroleum gas activities. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; refines and markets hydrocarbons; offers human resource services; distributes and supplies electricity; and develops new energy source, solar, and wind projects, as well as produces and markets chemical products, lubricants, and biofuels. Further, it is involved in fuel and special products marketing, research, trading and transport, insurance and reinsurance, technology development, and financing activities; develops nanoparticles and nanofibers for material, energy, and biomedicine applications; provides blockchain technology for retail, energy, and automotive sectors; produces synthetic oil cloths; invests in liquefaction plant project; and offers water treatment technology management services. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 23, 2026)

1) Strategic Context and Leadership Commitment
- Repsol's CEO, Josu Jon Imaz, highlighted the company's strong performance amid geopolitical tensions, particularly around the Strait of Hormuz, which disrupted energy trade and resulted in significant supply losses.
- The company remains focused on security of supply, diversification of energy sources, and enhancing shareholder returns while maintaining a strong financial position.
- Repsol's flexible refining capabilities and diversified sourcing have allowed it to navigate the volatile market effectively.

2) Financial and Segment Results
- Adjusted net income for Q2 2026 was EUR 1.8 billion, up more than EUR 1 billion YoY, with first-half adjusted net income reaching EUR 7.2 billion, a 135% increase from the previous year.
- Cash flow from operations was EUR 1.9 billion for the quarter, totaling EUR 3 billion for the first half of 2026.
- The Industrial division saw adjusted net income of EUR 1.2 billion, a significant increase from EUR 103 million YoY, driven by stronger refining and chemicals performance.
- Upstream production averaged 558,000 barrels of oil equivalent per day, the highest in two years, with a strong contribution from the U.S. and other regions.

3) Operational Plans and Challenges
- The company is ramping up production in Alaska, with the Pikka project expected to reach a plateau of 80,000 gross barrels per day.
- In Venezuela, production remains stable despite recent challenges, and Repsol is committed to increasing output significantly over the next few years.
- The refining margin indicator averaged $14 per barrel, supported by strong diesel and jet fuel spreads, with expectations for healthy margins to continue into 2027.

4) Guidance and Outlook for Investors
- Repsol plans to increase its share buyback program from EUR 350 million to EUR 500 million, with a third buyback program expected to be announced in October.
- The company aims to distribute 30% to 40% of cash flow from operations to shareholders, maintaining a disciplined capital allocation strategy.
- The outlook remains positive for the second half of 2026, particularly in refining and trading, despite uncertainties in the geopolitical landscape.

5) Conclusion and Missing Elements
- The earnings call provided a comprehensive overview of Repsol's performance and strategic direction, but specific guidance on future production targets beyond 2026 and detailed plans for renewable energy investments were less clear.
- Bottom line: Repsol's strong financial performance and strategic focus on security of supply and shareholder returns position it well for continued growth, despite external challenges. The commitment to disciplined capital allocation and increasing shareholder distributions enhances its attractiveness to investors.

No data