Repsol: reactions to the update

There is a strategy update at Repsol. You want to position yourself more broadly and become greener. The dividend is expected to fall to EUR 0.60 per share for 2020 and 2021 (2019: EUR 0.916), but will rise again to EUR 0.90 by 2025. As the dividend is reduced, the scope for higher investments increases. The plan is to invest 18.3 billion euros by 2025. The generation capacity should then increase to 7.5 GW (2019: 3.0 GW). In 2030 the value should be 15 GW.

With an oil price of $ 50 a barrel, the plan should be financed from free cash flow. This also includes dividends and share buybacks. 50 million own shares could be bought back annually in the coming years.

The DZ Bank analysts stick to their buy recommendation for Repsol shares. The price target for the papers of the Spaniards increases from 7.50 euros to 9.75 euros.

The analysts call the strategy update convincing. In addition, the uncertainty in the entire industry is decreasing, as the chances of a corona vaccination increase.

In 2020, from the analysts’ point of view, Repsol should generate earnings per share of EUR 0.24 (old: EUR 0.23). In 2021 it should be 0.85 euros (old: 0.83 euros).

As before, the experts at Independent Research have issued a hold recommendation for Repsol’s shares. Here the target price increases from EUR 5.50 to EUR 8.40.

The experts see adjusted earnings per share of EUR 0.29 for 2020 (old: EUR 0.24). For 2021 they are increasing their forecast from EUR 0.75 to EUR 0.79.


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