MADRID (dpa-AFX) - Spanish integrated energy company Repsol S.A. (REPYY.PK) unveiled its 2016-2020 Strategic Plan, with which the company enters a new phase in which it will extract value from the growth achieved after achieving the targets set in its previous Strategic Plan.
The company said it will focus on efficiency and asset portfolio management to meet the value-creation objectives from the 2016-2020 Strategic Plan under any circumstances and to increase its resilience.
After a period of growth culminating in the purchase of Talisman, the 2016-2020 Strategic Plan will implement a series of initiatives which aim to double EBITDA (at CCS) to 11.5 billion euros.
The flexibility, strength, and adaptability of its asset portfolio will allow Repsol to undertake divestments of 6.2 billion euros in nonstrategic assets and cut spending by 38% without altering its company profile.
Along with lower investment, asset portfolio management will allow for divestments of 6.2 billion euros between 2016 and 2020, half of which will be executed in the next two years.
The plan includes an ambitious efficiency program with specific actions and commitments- some of which are already implemented- with which it will obtain 2.1 billion euros a year of savings and synergies.
Repsol allocates one euro per share and distributes this as scrip dividends.
According to the company, dividend payment will be possible throughout the entire period contemplated in the strategic plan, even with crude prices remaining at 50 dollars per barrel for the duration. At that Brent price, Repsol will be able to generate cash flow to finance its investment needs, maintain dividends, and pay off debt. Furthermore, it will be able to maintain its investment grade rating.
Copyright RTT News/dpa-AFX