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Repsol adjusts its results to become a net zero emissions company by 2050

2020-02-20

Repsol is orienting its strategy to become a net zero emissions company by 2050, the first in its sector to set this ambitious target.

The company has assumed new crude oil and gas price scenarios consistent with the climate targets of the Paris Agreement, which entails an adjustment of 4.849 billion euros in the accounting value of the Group’s assets. This has impacted the 2019 net income, which was -3.816 billion euros.

The adjusted net income, which measures the performance of the company’s businesses, totalled 2.042 billion euros, demonstrating their soundness even in a context of low crude oil and gas prices and narrower industrial margins.

Operating cash flow maintained positive momentum throughout the year and totalled 5.837 billion euros, 8% more than the previous year, as a result of a strategy that allowed the company to overcome an adverse environment.

Solid cash generation allows Repsol to advance in its commitment to actively fight climate change and, at the same time, maintain its remuneration policy, which is one of the most attractive in the Spanish stock market and its sector. In 2020, this includes proposing to the General Shareholders’ Meeting an additional improvement through the amortization of 5% of the company’s share capital.

The Downstream unit posted earnings of 1.456 billion euros, in a year in which it maintained its focus on innovation, internationalization, and emissions reductions, with milestones such as the incorporation of four new renewable energy projects and surpassing one million electricity and gas customers.

The Upstream unit earned 1.050 billion euros with production of 709,000 barrels of oil equivalent per day, in alignment with the strategic vision of prioritizing value creation.