Repsol Seen Cutting Dividend to Defend Rating After YPF: Energy
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Repsol YPF SA is expected to cut the highest dividend payments among major oil producers to defend its credit rating after Argentina’s seizure of YPF SA.
Repsol will probably opt to lower its annual payout from 1.155 euros ($1.44) a share, or about 1.4 billion euros in total, to conserve cash after Standard & Poor’s said its debt risks a downgrade to junk, said Lydia Rainforth at Barclays Plc and Brendan Warn at Jefferies International Ltd. They didn’t say how much Repsol will reduce dividends, which yield 8.3 percent.