MADRID, Nov 26 Reuters Spains Repsol said on Thursday it would cut its shareholder payouts and channel more funds to its lowercarbon business over the next five years as it spends less on oil and gas production.
Repsol, whose shares have lost 35 of their value this year in a sectorwide slump, lowered its 2021 and 2022 dividend to 0.60 euros per share in cash, from a current level of one euro per share, but said buybacks could push returns above one euro per share by 2025.
Larger peers BP and Royal Dutch Shell broke a longstanding sector taboo by cutting their dividends earlier this year as the coronavirus pandemic strangled fuel demand, but Shell hiked its payout again last month..
Repsol, an early mover among oil and gas firms in pledging to cut or offset all the emissions produced by the products it brings out of the ground, said it would reduce operating expenditure on oil and gas exploration and production by 15.
Lowercarbon ventures will receive 30 of a planned 18.5 billion euros in capital expenditure over the next five years. The company aims to have installed 15 gigawatts in renewable generation capacity in 2030.
Reporting by Isla Binnie, Editing by Inti Landauro and Mark Potter