The following is a summary of the Repsol, S.A. (REPYY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Repsol reported Q1 adjusted income of €1.3 billion, decreasing 33% YoY due to affected commodity prices.
Cash flow from operations declined 26% YoY to €1.4 billion due to a €0.9 billion working capital buildup.
Net debt was €3.9 billion at the end of March, a significant increase due to various factors including acquisition of ConnectGen and increase in working capital.Net CapEx for Q1 aligns with the objective of achieving a net CapEx of €5 billion in 2024.
Full year CapEx guidance stands at €5 billion, with €2.1 billion already spent in Q1.
Divestment and asset rotation process of about €1.5 billion is planned for this year.
CapEx is to be maintained within the €16 billion to €19 billion range throughout the strategic period.
Business Progress:
Progressed the development of renewable fuel platforms through strategic partnership and acquisitions.
Plans for further shareholder distribution, and additional buybacks later in 2024.
Aims to add new renewable operating capacity and achieve significant total installed capacity by year-end.
2024-2027 Strategic Plan prioritizes shareholder distributions from operational cash flows.
Committed to decarbonisation targets and profitable business opportunities linked to energy transition.
Forecasts a tight supply-demand balance due to potential new capacity and increase in demand.
Goals set for advancement of renewable fuels and presence in service stations.
Anticipates a recovery of approximately €700 million working capital by year-end.
Operational focus narrowed down to nine countries from thirteen.
Agreement with Federation has resulted in increased production in Petroquiriquire.
Hedging in place for over 40% total gas production for the next three years.
Plans for maintaining shareholder distribution priority whilst transforming the company.
Expectation of positive EBITDA from the chemicals business for the entire year, along with a second buyback program planned in H2.
A joint venture with Bunge is planned to accommodate significant total biofuel feedstock needs by 2030.
Expected positive interest rate scenario in the US renewables business driven by IT and AI-related activities.
More details: REPSOL SA SPON ADR-EACH CNV INTO 1 ORD(BNY) IR
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