On Thursday, Repsol announced a better-than-expected quarterly profit, thanks to the dynamism of its upstream activities and a lower-than-expected tax rate.

In the fourth quarter, Repsol posted an adjusted profit of 1.2 billion euros, compared with 1.1 billion in the same period of 2022 and a consensus of one billion euros.

Above all, Repsol stated its intention to return ten billion euros in cash to shareholders by 2027 as part of its new strategic plan.

When presenting its 2024-2027 plan, Repsol explained that it planned to distribute 4.6 billion euros in dividends over the period, in addition to a 5.4 billion share buyback program.

With this new plan, the company intends to invest between 16 and 19 billion euros over four years, more than 35% of which will be earmarked for its least carbon-intensive activities.

Investors seemed to welcome these announcements, with the Repsol share gaining more than 4% by 11:00 a.m., while the index of European oil stocks advanced by just 0.6%.

We are encouraged by this business update", commented analysts at Royal Bank of Canada this morning.

"Repsol appears to be focusing on attractive levels of redistribution to its shareholders, while pragmatically managing the transition of its activities", added RBC.

The share price has risen by over 7% since the start of the year, compared with a loss of around 3% for the sector index.

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