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Repsol to hike output, dividend by 2020 with focus on low-carbon transition

Spanish energy-giant Repsol SA plans to increase production to 750,000 barrels per day, hike its dividend to €1 per share by 2020 and could buy back shares, the company said June 5 in an update to its strategic plan for the next few years.

For 2018 through 2020, the oil major has allocated €15 billion for capital expenditures. Of that total, 53% will be earmarked for the company's upstream unit and €4 billion will be allocated for new initiatives, particularly in its downstream unit, as well as low-carbon energy initiatives.

Repsol intends to invest €2.5 billion in low-emissions businesses through 2020. The company said its goal is to reach 2.5 million retail gas and electricity customers in Spain by 2025, with a market share above 5% and a low-carbon generation capacity of approximately 4,500 MW.

Repsol's projections are based on a global oil price of $50 per barrel. Brent crude oil futures are currently trading near $75/bbl.

"If oil prices remain steadily higher during the period, the company will accelerate growth from the projects in its existing pipeline," the company said.

In the first quarter of this year, Repsol's reported hydrocarbon production reached its highest level since 2012 at 727,000 barrels of oil equivalent per day.