Repsol rises 3.5% on the stock market due to the possible interest of EIG for its 'Upstream' business

MADRID, 7 Jun. (EUROPA PRESS) -

Repsol shares posted a rise of almost 3.5% on the stock market this Tuesday due to the possible interest of the EIG Global Energy Partners fund in acquiring a stake in its Exploration and Production business (E

Specifically, the shares of the group chaired by Antonio Brufau were the most outstanding within the Ibex 35 in the session, only surpassed by Solaria, with an increase of 3.47%, to close at 15.95 euros.

So far this year, Repsol has accumulated a revaluation of more than 52% on the Stock Exchange, which has led it to 'flirt' with the level of 16 euros, a level that has not been consolidated at the end of a session since October 2018.

In a statement to the National Securities Market Commission (CNMV), Repsol acknowledged that, in the context of "the dynamic and permanent management" of its business portfolio, it has been analyzing "various opportunities and proposals" related to its Exploration area and Production, although he stressed that he has not made "any decision in this regard."

The multienergy company also pointed out that it considers its Exploration and Production business "as strategic, which includes its long-term maintenance and consolidation."

In this way, the group led by Josu Jon Imaz responded to the information advanced by Reuters about the existence of preliminary talks for the possible sale of 25% of its oil and gas subsidiary to the US fund EIG Global Energy Partners.

According to Reuters, Repsol and EIG have begun negotiations as a result of an "unsolicited" offer presented by the fund to the multi-energy company.

Repsol's Exploration and Production ('Upstream') business is valued at between 14,000 and 18,000 million euros including debt, according to analysts' assessment.

In 2021, this division, driven by the high price of oil, recorded adjusted net profits of 1,687 million euros.

In addition, last year it sold all its productive assets in Malaysia and Vietnam, as well as its participation in the Arog joint venture in Russia, and reduced the number of countries in which this area has a presence from 25 to 15, within its strategy of concentrating activity in regions where the company has competitive advantages.

Likewise, the energy company is negotiating the sale of a minority stake in its green subsidiary. The board of the oil company is expected to decide this month on the operation.

In this operation on its renewables business, the company is looking for a partner that adds value and is fully aligned with Repsol's growth strategy in green energies, which aspires to an installed capacity of 20 gigawatts (GW) in 2030 and 6 GW in 2025.

Founded in 1982, EIG is an institutional investor specializing in global energy and energy-related infrastructure investments.

The fund that, during its 40-year history, committed more than 40,000 million dollars (about 37,390 million euros) in investments in the energy sector through more than 380 projects or companies in 38 countries on six continents, had at the end of last year about 23,000 million dollars (about 21,500 million euros) under administration.

EIG's clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the United States, Asia and Europe.