Repsol to sell EUR6.2bn of assets, slash spending

Spanish oil company Repsol plans to sell €6.2bn of non-core assets and cut spending by 38% over the next five years in a bid to pay down debt and maintain its dividends amid declining oil prices.

The company said dividend payment will be possible through the entire period covered by the strategic plan, even if crude prices remain at $50 per barrel.

Repsol said it would achieve annual synergies and efficiency savings of €2.1bn by 2018 and reach earnings before interest, tax, depreciation and amortisation cleaned of inventory effects of €7.9bn by 2020.

“We are presenting a plan with a clear vision, and measurable commitments. This plan not only shows our solidity and resilience, but also how far we can go in terms of creating value and strength for our company,” said Repsol chief executive officer Josu Jon Imaz.

At 1340 BST, Repsol shares were down 2% at €11.92.