Repsol SA

XMUN:REP

Strong quarter: Repsol reported adjusted net income of EUR 1.8 billion, up more than EUR 1 billion year on year, helped by a much stronger Industrial division and higher upstream output.

Cash and leverage: Operating cash flow was EUR 1.9 billion, but working capital absorbed EUR 1.3 billion as the company built inventories to protect supply. Net debt fell to EUR 3.7 billion and gearing was 11.3%.

Buybacks rising: Management said it will launch a third buyback program in October and raised the second 2026 buyback to EUR 500 million from EUR 350 million, while reaffirming the 30% to 40% cash flow distribution target.

Refining strength: Refining was the standout, with margins supported by tight diesel and jet fuel markets, lower inventories, and disruption in Russia and the Strait of Hormuz. Management said July margins were still running above $30 per barrel.

Upstream growth: Pikka in Alaska started producing in May and is expected to reach 80,000 gross barrels per day in Q3. Full-year output is expected near the high end of the 560,000 to 570,000 barrels per day range.

Venezuela and renewables: Repsol said recurring cargo payments are financing its Venezuelan gas and oil investments, while its renewable asset rotation continued with a EUR 849 million deal that should cut net debt by EUR 700 million.