Spain's Repsol energy firm to sell assets, cut spending

AP News
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Posted: Oct 15, 2015 7:12 AM

MADRID (AP) — Spanish energy company Repsol says it will sell 6.2 billion euros ($7.1 billion) in non-strategic assets and slash spending over the next five years as part of a plan to increase efficiency and cope with weak oil prices.

Repsol SA said Thursday that its 2016-2020 strategic plan calls for spending to be cut 38 percent without altering the company's profile.

A drop in oil prices in recent months is forcing many energy companies to make significant adjustments.

Repsol said it intends to keep dividend payments stable even if crude prices remain at $50 per barrel.

It said Wednesday its net profit for this year will fall to between 1.25 billion euros and 1.5 billion euros, from 1.61 billion euros last year, due to lower prices and refining margins.