Repsol is celebrating. The Spanish oil company is not only the most bullish company on the Ibex 35 in a month, but the rally of 21.5% that it has experienced in this period has led it to surpass this Monday the highest price that touched its price in February 2020, 11.36 euros, just before the great crash caused by the Covid-19 pandemic began.
The company has needed 20 months to recover the price it had then, but the rally that its shares have achieved in recent months has been truly vertiginous. Their stocks hit the 2020 lows in October of that year, and in less than a year they have appreciated by almost 137%. The last acceleration in the climbs started last July: since the lows for that month, the firm has recovered almost 33%.
In the last month, Repsol has accompanied oil in the increase in prices that the barrel is experiencing. The rise has practically no pause: in the 21 market sessions that have elapsed since last September 3, Repsol has closed with increases in 18 of them, and only in 3 has it ended in the red.
Investors seem to be picking up on their expectations the benefits of more expensive oil for Repsol. It should be remembered that the strategic plan that the company drew up at the end of 2020 was designed to be able to generate enough cash to cover investments and dividends, without increasing the debt it accumulated in fiscal year 2020, and all that. with an oil price scenario of $ 50.
With the Brent above 80, and rising, everything indicates that the company will have room to make new investments, whether in new renewable projects to boost its decarbonization process, shareholder remuneration … etc.
It should not be forgotten that the gross profit of any integrated oil company, such as Repsol, directly benefits from rising oil prices, and for the Spanish company it can be translated into 200 million ebitda for every 10 dollars that crude oil rises, as explained in an interview in the Economist Antonio Lorenzo, economic and financial director of the firm, last July.