3Q23 Results
26 October 2023
Josu Jon Imaz
CEO
Disclaimer
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This document contains information and statements that constitute forward-looking statements about Repsol. Such estimates or projections may include statements about current plans, objectives and expectations, including statements regarding trends affecting Repsol's financial condition, financial ratios, operating results, business, strategy, geographic concentration, production volumes and reserves, capital expenditures, cost savings, investments and dividend policies. Such estimates or projections may also include assumptions about future economic or other conditions, such as future crude oil or other prices, refining or marketing margins and exchange rates. Forward-looking statements are generally identified by the use of terms such as "expects," "anticipates," "forecasts," "believes," "estimates," "appreciates" and similar expressions. Such statements are not guarantees of future performance, prices, margins, exchange rates or any other event, and are subject to significant risks, uncertainties, changes and other factors that may be beyond Repsol's control or may be difficult to predict. Such risks and uncertainties include those factors and circumstances identified in the communications and documents filed by Repsol and its subsidiaries with the Comisión Nacional del Mercado de Valores in Spain and with the other supervisory authorities of the markets in which the securities issued by Repsol and/or its subsidiaries are traded. Except to the extent required by applicable law, Repsol assumes no obligation - even when new information is published, or new facts are produced - to publicly report the updating or revision of these forward-looking statements.
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The information contained in the document has not been verified or revised by the Auditors of Repsol.
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Agenda
01. Key messages
- Divisional performance
- Financial results
- Outlook
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Key messages of 3Q23
Strategic progress underpinned by solid earnings and cash flow generation
Robust quarterly results | |||
€1.1 B | €1.3 B | ▪ Higher O&G prices and stronger refining margins | |
▪ Cash impact of Maxus settlement and Spanish windfall tax | |||
Adjusted Income | CFFO | ▪ Working capital outflow of €0.9 B | |
+33% vs 2Q23 | -23% vs 2Q23 | Transactions aligned with strategic priorities | |
-59% vs 3Q22 | |||
-27% vs 3Q22 | |||
▪ Focusing E&P growth in core areas. Divestment of remaining | |||
assets in Canada | |||
▪ Adding renewable US onshore wind platform through acquisition | |||
of ConnectGen | |||
€1.9 B | 5.9% | Delivering on shareholder remuneration commitments | |
Net Debt | Gearing | ||
▪ On track to distribute €2.4 B in 2023 (dividends + capital | |||
-18% vs Dec'22 | -2.1 p.p. vs Dec'22 | ||
reductions) | |||
▪ Increasing January'24 dividend to 0.4 €/share (+14% vs. Jan'23) | |||
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Market Environment
Refining margins fueled by higher middle distillates spreads
Brent | Henry Hub | ||||
($/bbl) | ($/Mbtu) | ||||
101 | 89 | 8.2 | |||
81 | 87 | 6.3 | |||
78 | |||||
3.4
2.1 2.5
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
Repsol's Refining Margin Indicator
($/bbl)
18.9
12.7 | 15.6 | 13.6 | ||||
6.4 | ||||||
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
Exchange Rate
($/€)
1.01 1.02 1.07 1.09 1.09
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
Note: all figures are averages | Repsol 3Q23 | 5 |
Upstream
Positive operational momentum with focus on project delivery and portfolio transformation
Production 3Q23 vs 2Q23
(Kboe/d) | 8 | -2 | -6 |
596 | 596 | |||||||||||||
2Q23 | North | Latin | Europe, | 3Q23 |
America | America Africa & RoW |
Production 3Q23 vs 3Q22
(Kboe/d) | 47 | 11 | -10 | |
549 | 596 | |||
3Q22 | North | Latin | Europe, | 3Q23 |
America | America Africa & RoW |
Production +9% y-o-y:
- New wells in Eagle Ford and Marcellus
- Higher sales in Venezuela
- YTD production in line with guidance at ~ 600 Kboe/d
Project development:
- Start-upof Shenzi North (GoM)
- DoC of Campos-33(Brazil)
- Appraisal of Blacktip (GoM) confirms Wilcox play
Portfolio transformation:
- Divestment of remaining E&P position in Canada for $468 M
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Upstream
Concentrating E&P portfolio in core regions and sanctioning key growth projects
Alaska Pikka (USA) [49%]
Marcellus (USA)
Shenzi (USA) [28%]
YME (NOR) [55%]
Prod. Adding (UK) [51%]
Eagle Ford (USA)
Block 29 (MEX) [30%]
Leon / Castile (USA) [42%] | FID taken |
Operated | |
Buckskin (USA) [22.5%] | Sakakemang (IND) [45%] |
BPTT (T&T) [30%] |
Akacías (COL) [45%]
BM-C-33 (BRA) [21%] |
Lapa SW (BRA) [15%]
[Repsol's Working Interest]
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Industrial
Refining margins recovery and ongoing weakness in Chemicals
Refining
Margins boosted by strong middle distillates demand and low inventories
Market positively impacted by delays in capacity expansion projects and ban on Russian exports
Higher utilization of Repsol's refining system after completing all planned turnarounds in 1H23
Distillation Utilization | Conversion Utilization | |||
(%) | (%) | |||
88 | 87 | 103 | 102 | |
80 | 90 | |||
Chemicals
Consumer spending negatively impacted by inflation and high interest rates
Weak demand situation, affecting most chemical sectors in Europe, expected to last until year-end
Repsol's Chemical Margin Indicator
(€/t)
286
198
163
3Q22 | 2Q23 | 3Q23 | 3Q22 | 2Q23 | 3Q23 | 3Q22 | 2Q23 | 3Q23 |
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Industrial
Steady progress in the transformation of industrial sites
Advanced biofuels
C-43(Cartagena) in final stages. Flexibility to produce 250 Ktn/y of HVO or 195 Ktn/y of SAF depending on market conditions
Retrofitting of Puertollano approved in July. Capacity to produce 240 Ktn/y of HVO, bionaphtha and bioLPG
Expected €350-650 of EBITDA per Tn of
feedstock processed between both projects
Renewable Hydrogen
Start-upof 2.5 MW pilot electrolyzer in
Bilbao
Milestone in Repsol's decarbonization route
Plans for building electrolyzers in all refinery hubs in Spain
Sustainable Aviation Fuel
Strategic agreements with key airlines for the supply of renewable fuels
Further regulatory support after approval
of RefuelEU Aviation initiative
Biomethane
Development of biomethane projects in Iberia
Agricultural and livestock waste feedstocks
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Customer
Expected record EBITDA in 2023 supported on the stability of retail businesses
Resilience of Mobility business offsets weaker LPG due to seasonality in 3Q23
Multi-energystrategy built around Waylet: capture new clients, retain customer base and generate cross-selling opportunities
Personalized discounts allow shift from broad-market discounts to client-specific
>7 M Waylet app users. On track to achieve strategic target of 8 M digital clients in 2025
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Repsol SA published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 10:18:32 UTC.