Repsol shares

Repsol shares

The Repsol share price rose by 33% in 2016, which is significantly above the 2% decline in the IBEX 35 index and higher than the average increase of 30% of its European peers.

Although European markets were buoyed by the implementation of the European Central Bank's debt repurchase program (quantitative easing), macroeconomic factors mainly arising from the United Kingdom's referendum vote to leave the European Union reversed this trend toward the end of the first half of the year.

The second half of the year was characterized, however, by a recovery in the main European indexes, which were positively influenced by the recovery in hydrocarbon prices following the preliminary agreement reached by OPEC in its Algiers meeting in late September.

Despite the relative underperformance of the IBEX 35 compared to other European indexes, the Repsol share achieved the second-best performance for companies in the sector and closed the year 3% above the average attained by integrated European oil & gas companies. The recovery of crude oil prices, together with the progress made toward the targets of the Strategic Plan (in particular with regard to efficiency measures, the implementation of synergies and the divestment program) contributed to Repsol's positive stock market performance in 2016.


Created with Highstock 5.0.9REPSOLIBEX 35Jan '16Mar '16May '16Jul '16Sep '16Nov '16Jan '1770%80%90%100%110%120%130%140%Repsol share vs. the IBEX 35

 

 

The Repsol share price rose by 33% in 2016, which is significantly above the 2% decline in the IBEX 35 index

Shareholder remuneration

Repsol is committed to maintaining attractive returns for its shareholders, although it does not have a formal dividend distribution policy. Nonetheless, any shareholder remuneration to be distributed by Repsol, S.A. will depend on various factors, including the performance of its businesses and its operating results.

The remuneration received by shareholders in 2016 and 2015 under the “Repsol Flexible Dividend” program1 is as follows:

 
  • Remuneration of €0.96/share for 2015. This includes the amount of the irrevocable commitment to purchase free-of-charge allocation rights assumed by Repsol in the two capital increases concluded in January and July 2015 (€0.472 and €0.484 gross per right, respectively). In 2015, Repsol paid out a gross total of 488 million euros to shareholders and distributed 50,088,670 new shares, worth 814 million euros, to those shareholders opting to take their dividend in the form of new company shares.

  • Remuneration of €0.76/share for 2016. This includes the amount of the irrevocable commitment to purchase free-of-charge allocation rights assumed by Repsol in the two capital increases concluded in January and July 2016 (€0.466 and €0.292 gross per right, respectively). In 2016, Repsol paid out a gross total of 377 million euros to shareholders and distributed 65,283,041 new shares, worth 697 million euros, to those shareholders opting to take their dividend in the form of new company shares.
 

The Repsol share closed the year
3% above the average attained by integrated European oil & gas companies

In addition, in January 2017, under the “Repsol Flexible Dividend” program, replacing what would have been the interim dividend from 2016 profits, Repsol paid out 99 million euros in cash (0.335 euros gross per right) to those shareholders opting to sell their free-of-charge allocation rights back to the company and delivered 30,760,751 shares, worth 392 million euros, to those opting to take their dividend in the form of new company shares.

At the date of the approval of these consolidated financial statements, it is expected that the company's Board of Directors submit a proposal to the next Annual General Meeting to continue the “Repsol Flexible Dividend” program, through the implementation of a capital increase with full charge to reserves from retained earnings, on the same dates as those on which the company has traditionally paid the final dividend.

 

MAIN STOCK EXCHANGE INDICATORS

2015 2016
Shareholder remuneration (euros/share) [1] 0.96 0.76
Share price at year-end (euros) [2]
10.12 13.42
Average price for the year (euros) 14.77 11.29
Maximum price (euros) 18.54 13.825
Minimum price (euros) 9.96 8.023
Number of shares outstanding at year-end (millon) 1,400 1,466
Market capitalization at year-end (euro million) [3] 14,172 19,669
Price to earnings ratio (P/E)[4] (10.5)
11.6
Dividend yield paid [5] (%) 6.2 7.5
Book value per share [6] (euros) 19.8 20.6

[1]Shareholder remuneration for each year includes the dividends paid and the fixed price guaranteed by Repsol for the free-of-charge allocation rights awarded under the "Repsol Flexible Dividend" program.

[2]Share price at year-end in the Continuous Market of the Spanish stock exchanges.

[3]Share price at year-end x Number of outstanding shares.

[4]Share price at year-end / Earnings per share attributed to the parent company.

[5]Remuneration per share for each year / Share price at end of previous year.

[6]Equity attributed to the parent company/ Number of shares outstanding at year-end.


 

1 In 2012, Repsol launched, for the first time, the shareholder remuneration program called "Repsol Flexible Dividend". The program is implemented through capital increases against voluntary reserves derived from retained earnings, with the irrevocable undertaking of Repsol, S.A. to purchase the resulting free share allotment rights at a guaranteed fixed price. This program allows shareholders the opportunity to receive their remuneration, in whole or in part, in new paid-up shares issued by the company or in cash by selling their free-of-charge share allotment rights, either on the market at the share trading price or to the company. For additional information on the total remuneration received by shareholders and the aforementioned capital increases issued under the “Repsol Flexible Dividend” program, see sections 13.1 “Share capital” and 13.4 “Dividends and shareholder remuneration” of Note 13 “Equity” of the 2016 consolidated financial statements.