Dec 3, 2023·edited Dec 3, 2023Liked by Olivier at Emerging Value
ok this is a first positive point .. albeit it has been settled at more expensive price than estimated in the pending provisions.
There are also "provisonary super taxation" in Spain which seems to be extended for another year.
Need definitively to diversify agains this kind of risks.
Another "interesting point" regarding their renewable is that they sold 49% stake. I like this kind of move. They keep control of the unit which can be included in their consolidated revenues and more importantly in their consolidated "carbon footprint". It enables them to claim for green while keep allocating cash at much higher ROIC ! Best of both worlds !
The movements they do on the renewables on the buying and selling is a bit confusing, I like the selling part because buybacks are a better capital allocation at the moment. Renewables are not very profitable as per last Quarter.
I think OMV came with some Russian risk.
hello,
Some IMPORTANT LEGAL RISKS are worth mentioning about Repsol :
1. Oil spill in the Peruvian sea,
risk USD 5 879 M€
provision : ZERO !
2. Arbitration Following the acquisition of Talisman Energy UK Limited (TSEUK),
risk : USD 5 500 M€
provision : 779 M€
https://ojo-publico.com/4359/litigation-and-sanctions-against-repsol-triples-its-global-earnings
Some 10B€ unprovisonned risks vs a current market cap at 18B€.
-> need definite investigations before investing ..
Talisman is settled. https://cincodias.elpais.com/companias/2023-04-28/repsol-pone-fin-al-largo-litigio-con-sinopec-por-la-filial-de-talisman-en-reino-unido.html
my view is that these things can happen anytime and that predicting them is not possible, therefore valuation and diversification are key.
ok this is a first positive point .. albeit it has been settled at more expensive price than estimated in the pending provisions.
There are also "provisonary super taxation" in Spain which seems to be extended for another year.
Need definitively to diversify agains this kind of risks.
Another "interesting point" regarding their renewable is that they sold 49% stake. I like this kind of move. They keep control of the unit which can be included in their consolidated revenues and more importantly in their consolidated "carbon footprint". It enables them to claim for green while keep allocating cash at much higher ROIC ! Best of both worlds !
Another point is that the
The movements they do on the renewables on the buying and selling is a bit confusing, I like the selling part because buybacks are a better capital allocation at the moment. Renewables are not very profitable as per last Quarter.