6.9 C
London
Friday, January 27, 2023
HomeEconomyRepsol shares rise 3.5% on the stock market due to the possible...

Repsol shares rise 3.5% on the stock market due to the possible sale of part of its oil and gas production business to EIG | Economy | The USA Print

Date:

Related stories


Repsol platform in Trinidad and Tobago, in an image provided by the company.
Repsol platform in Trinidad and Tobago, in an image provided by the company.

The EIG Global Energy Partners fund is in talks with Repsol to buy a part of its Exploration and Production business (known in jargon with the anglicism upstream) of oil and gas, as confirmed to the Reuters agency by three sources familiar with the negotiations, which are at a very early stage. By transcending the possibility of that agreement, the shares of the Spanish oil company have jumped on the Ibex 35, where they have closed the day with a growth of 3.47% and a value of 15.95 euros per share, the highest since October 2018.

The fund of American origin, specialized in channeling private investment towards the energy sector and its related infrastructures, is interested in buying up to 25% of the area that is responsible for the exploitation of oil and natural gas deposits, according to the same sources. These have not put an economic value on the operation, but analysts value the entire business upstream of Repsol between 14,000 and 18,000 million euros. The division recorded net profits of 1,687 million last year and was the great driver of the 1,392 million profit (more than double that of a year earlier) that Repsol recorded in the first quarter of 2022.

After the publication of the news, the company chaired by Antonio Brufau has sent a statement to the National Securities Market Commission in which it admits to be “analyzing various opportunities and proposals related to said business”. However, Repsol points out that “no decision has been made in this regard” and recalls that the Exploration and Production business is “strategic, which includes its long-term maintenance and consolidation.”

If the sale of part of the business is completed, Repsol would be able to raise cash to finance its decarbonization program, which includes doubling its low-emission generation capacity until 2025. To reach 7.5 gigawatts (GW) in that year, the The company’s strategic plan, which covers the period 2021-2025, foresees an investment of 5,500 million (out of a total investment of 18,300 million in the plan as a whole). In addition, the talks come at a time when the international oil and gas market is hot as a result of high international prices for both products after the Russian invasion of Ukraine.

the one in the area upstream It is not the only corporate operation that the Repsol group is flying over. Without going any further, this Monday the departure of the share capital of Sacyr, which had a 2.9% stake in the oil company, was revealed. And, at the same time, it has been looking for a partner for its renewable generation subsidiary for months, although the Spanish group would keep a majority stake and retain control of that business.

For EIG Global Energy Partners, which is based in Washington, the operation would also be a continuation of its recent activity. The fund, which has been the one that has taken the initiative to address Repsol, last year led the consortium that paid 10,400 million to acquire 49% of the oil pipelines of the Saudi state oil company Aramco, which in the context of high prices international companies in the sector has become the largest company in the world.

He knows in depth all the sides of the coin.

subscribe

Also Read:

The labor crisis in the airline sector leads to a chaotic summer at airports | companies | The USA...
The current stock market crisis has already destroyed more value of the S&P 500 than the one of 2008...
The community of neighbors will be able to leave the defaulters without a pool and demand more inter...
Biden plans to suspend the federal gas tax to combat inflation | Economy | The USA Print
How is the tax on electricity companies in other European countries | companies | The USA Print
Spain: The Government only spent 2,400 million of European funds last year | Economy | The USA Pri...
Norway rubs its hands with the energy crisis: "There are times when it's not fun to make money, and ...
A week of gas cap: neither fiasco nor panacea | Economy | The USA Print
The richest 1% concentrates 17% of the national income | Economy | The USA Print
The unions demand that the CEOE return to the salary negotiation table: "If there is no agreement, t...
Kellogg splits into three companies to accelerate growth | Economy | The USA Print
The funds give Abengoa until Friday to save itself from bankruptcy | Economy | The USA Print
The CNMV will redouble surveillance on cryptocurrency advertising at sporting events | Economy | T...
Israel Arroyo leaves the post of Secretary of State for Social Security and Pensions | Economy | T...
Elon Musk says there are three issues to be resolved to close the purchase of Twitter | Economy | ...
Airef criticizes the Government for the lack of information on the execution of European funds | Ec...
El Corte Inglés repurchases half of the shares held by the Qatari investor Al Thani for 387 million ...
Montero cools off Yolanda Díaz's proposal and advances that the surcharge on electricity companies w...
Mark NT
Mark NT
Mark NT was born and raised in the India. He worked at a literary development company as a publisher. He is a creative website writer for teens and a good book reviewer.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Up to 75% off on Best Web Hosting

X