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Investing.com - Madrid-listed shares in Repsol (BME:REP) rose on Thursday after the Spanish oil and gas group posted fourth-quarter net income that topped expectations and raised its expected dividend for 2025.
Group-wide net profit for the period came in at 643 million euros, above consensus estimates of 598 million euros, with analysts from RBC Capital Markets citing strong refining results that were driven by biofuels.
Repsol's underlying quarterly cash flow from operations of 2.03 billion euros also surpassed estimates, the RBC analysts said. In a note to clients, they added that the figure appears to have been boosted by an earlier-than-anticipated cash tax refund of 189 million euros.
Full-year net income fell by 45% to 1.76 billion euros, with Repsol flagging the impact of a "complex geopolitical context" as well as lower crude oil, gas, and electricity prices and a moderation in refining margins.
For its 2025 fiscal year, Repsol guided for cash flow of between 6 billion euros to 6.5 billion euros, partly based on oil prices of $75 per barrel. On Thursday, Brent crude futures were little changed at around $76 per barrel, while West Texas Intermediate crude futures had edged down marginally to $72 a barrel.
"Overall, we see this as above consensus estimates," the RBC analysts said.
Net capital expenditures are also tipped to be between 3.5 billion euros to 4 billion euros, below estimates, including 2 billion euros worth of business disposals and portfolio rotation. But the divestments are seen weighing on production, with Repsol guiding for production of 530 - 550 thousand barrels of oil equivalent per day (kboed) in 2025, compared to projections of 573 (kboed), according to the RBC analysts.
Still, Repsol announced plans to increase its dividend by 8.3% to 0.975 euros gross per share in 025, and carry out a minimum share buyback of 700 million euros.
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Repsol shares rise as Spanish oil group vows to increase dividend in 2025