Net profit fell 7% to €1.03B, missing consensus. Record Upstream production of 620k boe/d provided a partial offset. CEO says IPO of Renovables is ready; the company is waiting for market conditions.
Repsol's second-quarter net profit fell 7% to €1.03 billion from €1.11 billion a year earlier, missing the €1.16 billion consensus estimate. Adjusted EBITDA dropped to €2.8 billion from €2.97 billion.
CEO Josu Jon Imaz blamed the decline on "lower refining margins and a less favorable gas environment." Industrial adjusted EBITDA fell to €1.04 billion from €1.22 billion. Crude oil margins have been under pressure across Europe, squeezing the downstream business.
The Upstream division provided the counterweight. Adjusted EBITDA rose to €1.35 billion from €1.18 billion. Production hit a record 620,000 barrels of oil equivalent per day, a 9% increase versus the year-ago quarter. The ramp-up of the Sakakemang field in Indonesia and new wells in the U.S. Permian basin drove the gain. Imaz said the company is on track to hit its full-year target of 595,000 to 605,000 boe/d.
Repsol's renewables and low-carbon generation unit posted adjusted EBITDA of €237 million, up from €220 million. The company commissioned 450 MW of new solar and wind capacity in the quarter.
Free cash flow generation was €1.2 billion, covering the €400 million dividend and €300 million in share buybacks. Net debt stood at €5.8 billion, up from €5.2 billion at year-end, reflecting investment in the Upstream ramp and renewables.
Repsol maintained its €0.55 per share cash dividend for the quarter and announced another €300 million buyback tranche. The company has now repurchased roughly 2.5% of its outstanding shares this year.
Several analysts pressed Imaz on the timeline for the planned IPO of Repsol's renewables subsidiary, Repsol Renovables. He said the company is "ready" waiting for market conditions. "We will not sell at a discount," he said. "When the window opens, we will move."
Imaz also addressed U.S. tariff policy. The company imports about 15% of its crude from Canada and Mexico, a mix that could shift if tariffs widen. "We have flexibility in our supply chain," he said. "We can redirect flows if needed."
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