Background on BlackRock and Repsol
BlackRock, a prominent U.S.-based investment firm, has increased its stake in Repsol, the leading Spanish oil company. BlackRock now holds 7.4% of Repsol’s capital, making it the largest shareholder. This development comes after BlackRock raised its position in Repsol by 1.2% since the last disclosure in October, when it owned 6.2% of the company’s shares.
BlackRock’s Investment Value
At the current market prices, BlackRock’s 7.4% stake in Repsol is valued at over €1.0 billion. On Monday, Repsol’s shares closed at €11.68 each, marking a 1.61% increase.
Barclays’ Support for Repsol
Last week, Barclays upgraded its rating on Repsol’s stock from ‘neutral’ to ‘overweight,’ setting a new target price of €15. This change was attributed to Barclays’ confidence in Repsol’s resilient oil demand and refining margins, which could positively impact the stock in the short term.
Barclays’ Positive Assessment
Barclays analysts found it reassuring that Repsol’s CEO, Josu Jon Imaz, addressed market concerns regarding the company’s capital framework in a recent conference call. Additionally, Barclays praised Repsol’s management for their confidence in the €2.0 billion divestment plan, which could help maintain shareholder returns.
Repsol’s Upcoming Shareholders’ Meeting
Repsol will hold its ordinary general shareholders’ meeting this Friday, where it plans to propose two dividend payments of €0.50 per share, funded from free reserves. One dividend will be paid in July, and the other in January 2026.
Capital Reduction Proposal
The meeting will also seek approval for a maximum capital reduction of €11.5739 billion (equivalent to 10% of the capital) through the cancellation of up to €11.5739 billion worth of Repsol’s own shares.
Recent Dividend Announcements
In February, during the presentation of 2024 results, Repsol announced a complementary dividend of €0.50 per share, payable later this summer. Combined with the first dividend (€0.475) paid in January, Repsol’s total dividend for 2024 would amount to €0.975 per share, representing an 8.3% increase compared to the previous year’s total dividend of €0.90 per share.
Key Questions and Answers
- Who is BlackRock and why is their investment in Repsol significant? BlackRock is a major U.S.-based investment firm. Their increased stake in Repsol (7.4%) signifies confidence in the company’s future and positions them as the largest shareholder.
- What changes did Barclays make to its rating on Repsol’s stock? Barclays upgraded its rating from ‘neutral’ to ‘overweight’ and set a new target price of €15, reflecting confidence in Repsol’s resilient oil demand and refining margins.
- What is the proposed dividend payment by Repsol? Repsol plans to pay two dividends of €0.50 per share, funded from free reserves, with one payment in July and the other in January 2026.
- What is the total dividend for 2024, based on recent announcements? The total dividend for 2024 would be €0.975 per share, representing an 8.3% increase compared to the previous year.
