Repsol Full-Year Report 2022

• Repsol obtained a net income of €4.251 billion in 2022, a year marked by uncertainty, volatility, and complex market dynamics due to the invasion of Ukraine.
• In 2022, Repsol invested €4.182 billion to advance its transformation, 40% more than the previous year, mainly in the Iberian Peninsula and the United States. To boost its multi- energy profile, it plans to allocate historic organic investments of more than €5 billion in 2023.
• The company’s integrated business model and the 2021-2025 Strategic Plan were key to a positive performance. Even so, the 2022 result added to the €2.499 billion income in 2021 – still falls short of offsetting the losses in 2019 and 2020 (€7.105 billion).
• The company has taken measures to ensure the purchasing power of its employees is maintained, implementing salary increases and extraordinary bonuses. It agreed with the unions a new Framework Agreement, retroactive to January 1, 2021. With that, the average remuneration in Spain increased by 9.4%, compared to the year before.

The war and the consequent sanctions imposed on Russia by the European Union had a direct impact on the continent’s energy markets which are highly dependent on Russian hydrocarbons. Gas prices and, subsequently, crude oil prices rose sharply during the first half of 2022 as sanctions against Russia were announced. Crude oil prices approached $140 per barrel, the highest levels since 2008.

In the second half of the year, fears of a global economic recession and the fall in demand changed the trend and prices fell, with Brent crude prices falling below $80 per barrel in December. As a result, Brent crude averaged $101 per barrel for the year. Meanwhile, Henry Hub gas closed the year at an average of $6.6 per MBtu, well above the 2021 average of $3.9 per MBtu.