Spain’s Repsol reports decline in Q1 profit

According to the company’s press release published on their website, Spanish energy company Repsol reported a 48% decline in adjusted net profit for the first quarter of 2025, totaling €651 million, down from €1.25 billion a year earlier. On a quarterly basis, Repsol’s total net profit for the quarter fell to €366 million, compared to €969 million in the same period last year.

Despite the sharp drop, the result exceeded market expectations, reflecting the company’s resilience in the face of falling oil prices, weak refining margins, and ongoing volatility in the energy sector.

In response to these headwinds, Repsol emphasized its continued focus on shareholder returns. The company confirmed it will maintain its dividend payout policy, with a target of distributing 30% to 35% of its cash flow from operations—even if market conditions deteriorate further. Management outlined scenarios including Brent crude falling to $65 per barrel and refining margins dropping to $4 per barrel, under which Repsol would still aim to meet its payout goals by adjusting investment plans and operational priorities.

To strengthen its financial position, Repsol is also optimizing its asset portfolio through divestments expected to generate about €700 million in cash. CEO Josu Jon Imaz stated that the company has laid a solid foundation to meet its full-year objectives, focusing on efficient capital allocation and operational discipline.