As oil prices began their unprecedented decline, Repsol SA’s profit fell 28 percent in Q1, but it beat analysts’ estimates and shares rose.
Companies have to make drastic cuts in spending due to crude’s collapse. In some cases, shareholder payouts slashed by these companies. Repsol’s performance, however, better than some of its rivals.
The company maintained the dividend. Compared with a year earlier, Repsol said its net debt won’t increase at the end of this year. The company’s decline in earnings is also less than that of Eni SpA and other rivals such.
A 35 percent decline earnings in Q1 also reported by French major Total SA. Spending cuts for the year deepened by Total SA. To help preserve cash, it also offered to pay some of the dividends in shares for Q4 2019.
Plans to unveil a new clean-energy strategy canceled by Repsol this month. Its share buybacks already halted. Beating analyst estimates, adjusted net income in Q1 fell to 447 million euros. From 323 million euros in 2019, earnings plunged to 90 million euros from oil exploration and production.
