Spain's Caixabank has announced that it would sell its 9.36% stake in global energy company Repsol, through a disposal program.


Image: Caixabank will carry out the stake sale process through two existing equity swaps and a disposal programme. Photo courtesy of Caixabank.

CaixaBank had acquired the stake in the Madrid-based integrated energy firm Repsol more than 20 years ago.

The bank will carry out the stake sale process through two existing equity swaps and a disposal programme.

The bank will offload a 4.61% stake in Repsol through the early settlement of the two existing equity swaps.

The remaining 4.75% stake will be sold through a disposal programme that will start immediately and terminate no later than the end of the first quarter of 2019.

Caixabank said: “The company reiterates its current return objective (RoTE) of 9-11% for 2018.

“It is estimated that this operation will result in an extraordinary net loss of, approximately, 450 million euros in the P&L statement of the third quarter and, once the sale process is complete, it is expected to have a broadly neutral impact on the fully-loaded Common Equity Tier 1 (CET1) capital ratio.”

The market value of Caixabank’s stake in Repsol stands at over €2.5bn, Reuters reported.

Repsol is involved in exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading businesses.

As of 31 December 2017, Repsol employed over 25,000 people across 37 countries. For the financial year 2017, the company posted a net income of €2.4bn.

The company recorded a production of 695,000 barrels of oil equivalent per day in 2017. The increase in production was due to the launch of new projects, such as Juniper in Trinidad and Tobago; Lapa and Sapinhoa in Brazil; and Shaw, Cayley and Flyndre in the UK.

Production from the $2bn Juniper project offshore Trinidad was started in August 2017.

In February, Repsol signed an agreement to acquire 7.7% stake in the Visund field, located in the North Sea from Total.

Repsol expects the acquisition to increase its net output by 40% to approximately 30,000 barrels of oil equivalent a day in Norway, where it holds working interest in 25 production licenses.