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REPSOL S.A.

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Repsol S A : customers will continue to benefit from the biggest discounts at its service stations in Spain

06/29/2022 | 06:18am EDT

Repsol, amidst tension in international gasoline and diesel prices ⁠- the main variable in determining fuel prices ⁠- will continue supporting its customers and will maintain the discounts at its more than 3,300 service stations in Spain.

Individual customers who use the free Waylet application will continue to benefit from a minimum discount of 10 euro cents per liter, in addition to the 20 cent discount offered by the Government from July 1 and throughout the summer, a period which registers a large number of displacements. The total price reduction at Repsol service stations amounts to 30 euro cents per liter of fuel, in addition to other customary discounts.

On the other hand, customers who visit Repsol's service stations and do not use Waylet will still receive a 5 cent discount on top of the Government's 20 cent reduction. Therefore, in these cases the total discount is 25 euro cents per liter.

For haulers, Repsol will maintain throughout the summer a minimum discount of 10 euro cents per liter to professional drivers who have the Solred card, in addition to the 20 euro cents bonus offered by the Government, so that the minimum discount will be 30 euro cents per liter. The offer is compatible with others already received by haulers and the self-employed through this card.

Likewise, haulers and professionals who do not use Solred have an additional discount of 5 euro cents per liter of fuel on top of the Government's 20 cents. Therefore, the price reduction in these cases is 25 euro cents per liter in total, also from July 1.

Commitment to customers

These discounts are being applied at the expense of the company's margins and have decreased the posttax earnings of Repsol's service stations in Spain to zero in April and May, the first two full months of the implementation of these measures to support customers in an exceptional international environment, in a context of rising costs and the unchanged tax burden applied to gasoline and diesel.

"Margins have been contained and have decreased appreciably in many service stations," said Cani Fernandez the President of the Spanish Competition Authority, CNMC, last Friday at a public event, adding that the regulator follows "very closely" the evolution of margins and that the body she heads has not detected an "absorption effect" of this discount by higher prices.

Repsol was the first operator to set discounts for both individual and professional customers from April 1 additional to the usual discounts that its customers have been enjoying for years and in addition also to the state bonus. From March 16 to June 30, Repsol estimates the total savings offered to its customers at 150 million euros at the rate of 10 or 5 euro cents per liter of discount, which, added to the usual ones, amounts to 215 million euros. This effort, which is in line with Repsol's commitment to society, has been assumed in its entirety by the company and does not include the 20 cents per liter bonus from the State.

Exceptional international context

The supply and refining of oil as well as the supply of fuels to customers is suffering from complications in Europe, not only due to the increase in the price of crude oil and gasoline and diesel -which trade based on international benchmarks -, a situation caused by the war in Ukraine and the partial ban on the import of raw materials and finished products, especially diesel, from Russia, but also due to the continent's reduced refining capacity.

In the last decade, 24 refineries have closed in the European Union, more than 10% of the continent's refining capacity, mainly due to low profitability and regulatory uncertainty. In contrast, consumption of gasoline, diesel and kerosene has increased by 1.3% over the same period.

This mismatch between supply and demand has led to a rise in world benchmarks, based on international global dynamics that go beyond the increase in the cost of the raw material, crude oil.

Refining market operation

In Spain, any operator can buy and sell gasoline and diesel on the international market. Repsol, for example, once demand in Spain is covered, exports gasoline to the United States and diesel to France. Producing fuels in Spain avoids the current uncertainty of finding a supply for alternative imports to Russian ones which other European countries are suffering. If there were no refining activity in Spain fuel prices would be the same or higher. The absence of a domestic refining system would have a significant negative impact on the country's trade balance and industrial employment, on which some 200,000 families currently depend directly.

This industrial activity, considered essential to the Spanish economy, has experienced an environment of low or even negative margins during the worst months of the coronavirus pandemic. The Spanish refining companies of the Repsol group had operating losses of €857 million during 2020 and 2021.

As Spain's leading refining operator, Repsol has invested approximately €1 billion a year in its facilities since 2008 to maintain its competitiveness, increase efficiency and add new units to produce renewable fuels, such as the advanced biofuels that will begin production at its Cartagena refinery next year.

Waylet, leading app in downloads

Waylet, leading up in download Waylet, the most downloaded free app in Spain during several days in March and April, allows customers to pay at any of the more than 3,300 Repsol service stations in the country, with features such as refueling without having to go to the cash register, managing electric vehicle recharging, paying quickly and securely from your contactless cell phone, and paying for regulated parking in more than 22 cities. In addition, more than 4,000 businesses have signed up to pay with Waylet, including El Corte Inglés, Burger King, Paradores, First Stop, La Casa de las Carcasas, Federópticos and Petuluku.

Launched in 2017, Waylet is the leading payment app for mobility in Spain, and currently has 4.5 million registered users. According to its Strategic Plan, Repsol aims to have eight million 100% digital customers by 2025.

Repsol, a leader in the quality and innovation of its products, has the most extensive network of service stations in Spain.

Disclaimer

Repsol SA published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 10:17:11 UTC.


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Sales 2022 60 014 M 61 534 M 61 534 M
Net income 2022 5 083 M 5 212 M 5 212 M
Net Debt 2022 3 946 M 4 046 M 4 046 M
P/E ratio 2022 3,39x
Yield 2022 5,10%
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Free-Float 89,5%
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Josu Jon Imaz San Miguel Chief Executive Officer & Executive Director
Antonio Lorenzo Sierra Chief Financial Officer
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Henri Philippe Reichstul Independent Non-Executive Director
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