Repsol Targets $7.1 Billion of Asset Sales in New Strategic Plan
- Company to cut investments by up to 38% over next five years
- Oil producer seeks to maintain dividend, generate cash
This article is for subscribers only.
Repsol SA plans to sell 6.2 billion euros ($7.1 billion) of assets and cut investments by as much as 38 percent over the next five years to help it preserve dividends.
Assets sales will bolster earnings before interest, taxes, depreciation and amortization, which are forecast to increase by 46 percent to 7.9 billion euros over the five-year period, Madrid-based Repsol said Thursday in a regulatory filing. While the company’s strategic plan uses a break-even oil price of $50 per barrel under a stress scenario, Repsol’s base outlook sees benchmark Brent crude rebounding to $91.80 by 2020.