Repsol plans higher dividends, steady buybacks, increased output, Alaska Pikka startup, and stronger quarterly profit recovery in 2026 outlook ahead.
Repsol has reaffirmed its commitment to enhancing shareholder returns in 2026, announcing plans to distribute approximately €1.9 billion ($2.2 billion) through a combination of dividends and share buybacks, while also targeting higher oil and gas production. The company outlined these objectives as part of its ongoing strategic focus on delivering consistent value to investors alongside strengthening its upstream portfolio.
The Spanish energy major stated that shareholder remuneration remains a central pillar of its corporate strategy. For the current year, Repsol intends to maintain its share buyback program at €700 million, keeping it in line with previous levels. In addition, the company aims to raise its dividend by 7.8%, bringing it to €1.051 per share. This follows total shareholder distributions of roughly €1.8 billion last year, underscoring the group’s continued emphasis on attractive capital returns despite market volatility and energy price fluctuations.
Chief Executive Officer Josu Jon Imaz emphasized that shareholders will remain the company’s top priority as it prepares for its upcoming capital markets day in 2026. He indicated that management remains focused on disciplined capital allocation, operational efficiency, and delivering predictable returns, even as the broader energy sector navigates geopolitical uncertainty and evolving regulatory frameworks.
On the operational front, Repsol is targeting a production range of 560,000 to 570,000 barrels of oil equivalent per day (boe/d) in 2026. This represents an increase from the average output of 548,000 boe/d recorded last year. The guidance excludes any potential incremental production from Venezuela, where past impairments and provisions have weighed on financial performance. By excluding Venezuelan volumes from its outlook, the company appears to be adopting a conservative approach to forecasting amid ongoing uncertainties in that region.
A key driver of anticipated production growth is the first phase of the Pikka project in Alaska. The development is expected to begin production in March, with output projected to reach 80,000 barrels per day during the second half of the year. The startup of Pikka marks a significant milestone in Repsol’s upstream expansion strategy and is poised to contribute meaningfully to overall output growth, reinforcing the company’s position in North America.
Financially, Repsol reported a strong turnaround in its fourth-quarter 2025 results. The company posted a net profit of €722 million, reversing a loss of €36 million recorded during the same period a year earlier. The previous year’s results had been adversely affected by asset impairments in the upstream division and provisions linked to Venezuelan operations. The return to profitability highlights improved operational performance and more stable market conditions compared with the prior year.
Overall, Repsol’s 2026 outlook reflects a balanced strategy centered on boosting production, safeguarding financial resilience, and delivering enhanced shareholder value through dividends and buybacks.
