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Repsol hires Linklaters and Uría to list its renewable energy subsidiary

Repsol has a business plan on the table whose objective is to advance in the reduction of net zero emissions by 2050. To achieve this, the company will invest 18 billion by 2025. The oil company will allocate $6.64 billion (€5.5 billion) to low-carbon businesses, which represents 30% of the total, compared to 16% in 2019. The company plans to list its renewable energy subsidiary on the stock market.

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Repsol is preparing to take its renewable energy subsidiary public. The company has signed JP Morgan as advisor bank and Linklaters and Uría as legal coordinator. The three entities will be in charge of designing the operation and calculating the perfect moment to carry out this operation, which could take place in the first opportunity sale detected by these entities.

The company could be valued at more than $3.6 billion (€3 billion). In fact, the oil company even estimated the income from this divestment at $1.7 billion (€1.4 billion) within its strategic plan.

Repsol plans to reach 7,500 MW of low-carbon electricity generation by 2025 and 15,000 MW by 2030. In Spain, the company aims to control 5,300 MW, including the expansion of the Aguayo plant in which it will invest between 650-700 million. In the international area, generation will reach 6,700 MW (3,100 MW photovoltaic and 3,600 MW wind).

In any case, the oil company maintains its intention to open the capital but without losing control, which would allow it to place up to 49%.

Imaz assured that he wants to develop in the next few years, at least, two more international renewable platforms as the one he already has in Chile and he is considering renewable and hydrogen investments in Morocco and he is also studying to grow in the United States.

On the other hand, the oil company continues to advance in the incorporation of a partner to its Customers business. Repsol mandated Citi at the end of last year to bring in an investor and the company has already received expressions of interest from international funds.

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The transaction, which is being carried out in parallel to the IPO of the renewables business, would also generate revenues of more than $3 billion (€2.5 billion).

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The oil company will allocate $6.64 billion (€5.5 billion) to low-carbon businesses

The Customer Department will be in charge of covering all energy and mobility needs for its 24 million customers. It brings together the current areas of Mobility, LPG, Electric Mobility, Electricity and Gas Marketing, Energy Solutions and Lubricants. The company’s goal is to increase this division’s EBITDA by 1.4 times, to $1.7 billion (€1.4 billion) by 2025, and plans to increase the number of electricity and gas consumers to two million.

With the closing of both operations, the oil company headed by Josu Jon Imaz could undertake a profound transformation of the company.

Repsol has a business plan on the table whose objective is to advance in the reduction of net zero emissions by 2050. To achieve this, the company will invest 18 billion by 2025. The oil company will allocate $6.64 billion (€5.5 billion) to low-carbon businesses, which represents 30% of the total, compared to 16% in the previous plan. In this way, it expects to record strong growth in EBITDA, to over $9.9 billion (€8.2 billion) in 2025.

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(Featured image by geralt via Pixabay)

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First published in elEconomista.es, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Olivia McCall is passionate about education, women and children’s rights, and the environment. A long-time investor, she covers news about the latest stocks (lately marijuana and tech), IPOs and indices, and is always on the lookout for socially responsible startups. She also writes about the food sector, and has a keen interest on cryptocurrencies.