March 26 (Renewables Now) - Repsol SA (BME:REP) on Wednesday said it will trim capital spending this year to cope with the impact of dipping oil and gas prices and the global COVID-19 crisis, but affirmed its commitment to renewables and maintained its emission targets.
The Spanish oil-and-gas major, and as of 2018 a renewable power utility company, decided to launch a Resilience Plan 2020 for all business units, under which it will cut capital expenditure (CAPEX) by more than EUR 1 billion (USD 1.09bn), a reduction of 26% compared to original plans for this year.
Further measures include reducing operating expenses by more than EUR 350 million, alongside optimisations of around EUR 800 million in working capital, Repsol said in a stock market filing.
The proposed measures will keep Repsol’s net debt at the end of the year at end-2019 level.
Market uncertainty amid the coronavirus pandemic will not affect Repsol’s commitment to the Paris Agreement and the UN Sustainable Development Goals. The company was explicit in saying it will maintain its target to reduce its carbon intensity index for 2020 by 3% compared to the 2016 baseline. The plans to significantly boost its renewable power generation capacity and cut CO2 emissions across all businesses, as well as the long-term ambition to reach net zero carbon emissions by 2050, will not be abandoned.
(EUR 1.0 = USD 1.094)