Repsol shares
A 10% increase in stock appreciation marked the end of 2017, exceeding the IBEX 35 index, and achieving an above average ranking among competitors in the European Oil & Gas sector.
Until halfway through the year, low crude oil prices negatively affected revenue, encumbering the sector and provoking a slight loss during the first quarter.
However, a significant recovery in share price took place during the second half of the year, prompted by the progress made in achieving the objectives of the 2016–2020 Strategic Plan as well as the strengthening of key macroeconomic references.
Brent crude oil fell below $50 per barrel halfway through the year, but recovered its value significantly during the second half, reaching its highest price in over two and a half years of over $65/barrel.
Remuneration for our shareholders
Even though we do not have a formal dividend payment policy, Repsol strives to offer attractive compensation to our shareholders. The shareholder rewards settled on by Repsol S.A. will depend on various factors, including the evolution of our companies and operational results.
The compensation received by shareholders in the years 2016 and 2017, in line with the "Repsol Flexible Dividend"1 program has been:
- Compensation of €0.76/share2 in 2017. Repsol paid out a gross sum of €288 million to shareholders. We gave out a further 61,751,953 new shares, worth €840 million, to those who preferred to reinvest.
- Compensation of €0.76/share3 in 2016. Repsol paid out a gross sum of €377 million to shareholders. We gave out a further 65,283,041 new shares, worth €697 million, to those who preferred to reinvest.
Additionally, in January 2018, as part of the 'Repsol Flexible Dividend' program and in place of what would have been the interim divided of 2017, Repsol paid out €153 million in cash (€0.388 gross per right) for scrip dividend rights to the company. We provided compensation of 29,068,912 shares, costing the equivalent of €440 million to those who opted to receive new shares in the Company.
The Board of Directors is expected to propose continuing the "Repsol Flexible Dividend" program at the next Annual General Meeting by increasing capital charged to voluntary reserves from non-distributed earnings within the dates that additional dividends have traditionally been settled.
| 2016 | 2017 | |
| Shareholder remuneration (euros/share)(1) | 0.76 | 0.76 |
| Share price at period-end (euros)(2) | 13.42 | 14.75 |
| Period average share price (euros) | 11.29 | 14.57 |
| Maximum price of the period (euros) | 13.83 | 16.16 |
| Minimum of the period price (euros) | 8.02 | 13.4 |
| Number of shares outstanding at end of the year (million) | 1,466 | 1,527 |
| Market capitalization at end of the year (million euros)(3) | 19,669 | 22,521 |
| PER(4) | 11.6 | 10.9 |
| Dividend yield (%)(5) | 7.5 | 5.7 |
| Book value per share (euros)(6) | 20.6 | 19.5 |
- For each period, shareholder remuneration includes the dividends paid and the fixed price guaranteed by Repsol for the bonus share rights awarded under the “Repsol Flexible Dividend” program.
- Share price at year-end in the continuous market of the Spanish stock exchanges.
- Year-end closing market price per share, times the number of shares in circulation.
- Year-end closing market price per share / Earnings per share attributable to the parent company
- Remuneration per share for each year / Share price at end of previous year.
- Equity attributed to the parent/Number of shares outstanding at year-end.
1 For additional information about the total expected compensation for the shareholders and the aforementioned capital increases from the "Repsol Flexible Dividend" program, see the "Capital" section of Note 6, "Net Worth" in the Consolidated Annual Financial Statement.
2 This includes the irrevocable commitment to buying the scrip dividend rights assumed by Repsol in the two capital increases, closed in January and July 2017 (€0.335 and €0.426 gross per right, respectively).
3 This includes the irrevocable commitment to buying the scrip dividend rights assumed by Repsol in the two capital increases, closed in January and July 2016 (€0.466 and €0.292 gross per right, respectively).