Q4 2025 Repsol SA Earnings Call

Operator: Hello, and welcome to Repsol's Q4 and full year 2025 results conference call. Today's conference will be conducted by Mr. Josu Jon Imaz, CEO, and a brief introduction will be given by Mr. Pablo Bannatyne, Head of Investor Relations. I would now like to hand the call over to Mr. Bannatyne. Sir, you may begin.

Hello, and welcome to the Repsol fourth quarter and full year 2025 results Conference call. Today's conference will be conducted by Mr. Jan <unk> CEO and embraced introduction will be given by Mr. Pablo <unk> head of it.

Investor Relations I would now like to hand, the call over to Mr. <unk>, Sir you may begin.

Pablo Bannatyne: Thank you, operator, and good morning to everyone joining us today. Welcome to Repsol's Q4 and full year 2025 results presentation. Today's conference call will be hosted by Josu Jon Imaz, our Chief Executive Officer, with other members of the executive team joining us as well. At the end of the presentation, we will be available for a Q&A session. Before we begin, let me remind you that during this presentation, we may make forward-looking statements based on estimates. Actual results may differ materially, depending on a number of factors, as indicated in our disclaimer. With that, I will hand the conference call over to Josu Jon.

Thank you operator, and good morning to everyone joining us today welcome to Repsol fourth quarter and full year 2025 results presentation.

This conference call will be host by you'll see only Mas, our chief Executive officer with other members of this equity athene, joining us as well.

The end of the presentation, we will be a base level for our Q&A session.

Before we begin let me remind you that during this presentation. We may make forward looking statements based on estimates.

Actual results may differ materially depending on a number of factors as indicated on our disclaimer.

With that I will hand, the conference call over to Josh here.

Josu Jon Imaz: Thank you, Pablo. Good morning, and welcome to everyone. 2025 was a year of strong execution for Repsol, underscored by solid strategic delivery and progress on our path of disciplined growth. In a complex geopolitical and macroeconomic backdrop, we continued to advance our strategic priorities, enhancing the returns to our shareholders, strengthening the portfolio, and maintaining a consistent approach to capital allocation. Operating in a lower and volatile oil price scenario, performance remained robust across all four divisions. In the upstream, we continued to improve the business by bringing new growth projects on the stream and optimizing the portfolio. In the industrial division, we continue advancing on the transformation of our sites, developing a scalable low carbon platform within our Iberian hinterland.

Thank you Pablo good morning, and welcome to everyone.

2025 was a year of strong execution for repsol underscored by solid strategic Liberty and progress on our path of discipline growth.

In a complex geopolitical macroeconomic backdrop, we continued to advance our strategic priorities enhancing the returns to our shareholders.

Threatening the portfolio and maintain a consistent approach to capital allocation.

Operating in a lower and volatile oil prices scenario performance remained robust across all four divisions.

In the upstream we continue to improve the business by bringing in new growth pretty extra stream and optimizing the portfolio.

In the industrial Division, we continue advancing on the transformation of our sites.

Eloping and scalable low carbon platform within our Iberian kindergarten.

Josu Jon Imaz: A positive refining momentum, especially in the second half, helped us to overcome the disruptions generated by the Spanish blackouts in the first part of the year. In customer, we leverage our brand, scale, and integration to develop an ambitious multi-energy offer, grow electricity retail, and reinforce profitability. In low carbon generation, we continue to execute our business model for renewables, rotating assets to crystallize value and limit our exposure. All of this, combined with the achievement of our key decarbonization target for 2025, as set in 2021, delivering a 15% reduction in the Carbon Intensity Indicator. Other targets, such as methane emission intensity and routine flaring reduction, were met as well. Our capital allocation framework continued to prioritize shareholder remuneration, underpinned by a strong balance sheet and delivery of discipline and transformational CapEx.

A positive refining momentum, especially in the second half helped us to overcome the disruption was generated by the Spanish blackouts in the first part of the year.

In customer we leverage her brand scale on it.

Integration to develop an ambitious multi hundred gopher grew.

Electricity retail.

And the frame for profitability.

In low carbon and gearing ratio will continue to execute our business model for renewables or taking assets to crystallize value.

Our exposure.

All of this combined with the achievement of our key de Carbonization target for 2025 assets in 2021 does he bring a 15% reduction that cover intensity indicator.

Other targets shutdown methane emission intensity in routine production were met is water.

Our capital allocation framework continue to prioritize shareholder remuneration.

Underpinned by a strong balance sheet and the delivery of discipline and transformation on Capex.

Josu Jon Imaz: Last year, we increased the dividend by 8.3% to 0.975 EUR per share. Total shareholder distributions were EUR 1.8 billion, comprising EUR 1.1 billion in cash dividends and EUR 700 million in share buybacks to reduce capital, placing us at the higher of our strategic cash flow from operations distribution range. As we look ahead to our capital markets day next month, the same key strategic principles will guide our updated roadmap to 2028. Ensuring a predictable and growing dividend complemented with buybacks will remain fundamental to the strategy. Let me underline this point. For 2026, under our planning scenario, distributions will continue improving, with the cash dividend growing around 8% to 1.051 EUR per share, and buybacks in line through 2025.

Last year, we increased the dividend by eight 3% to Cedar point.

90, starting five era for sure.

Shareholder distributions were one 8 billion euros comparison.

<unk> 1 billion in cash dividends on shipping 100 million in share buybacks.

To reduce capital placing NASA.

One of our strategic cash flow from operations distribution Orange.

As we look ahead to our capital markets day next month, the same key strategic principles.

Guide or update roadmap to 2028.

And certainly in a predictable and growing dividend complemented with buybacks will remain.

Fundamental to this strategy, let me underline this point.

For 2026 under our planning scenario distributions will continue improving.

With the cash dividend growing around 8% to one sito.

Five one euro per share.

And buybacks in line through 2025.

Josu Jon Imaz: Moving on to results, as detailed in the documents you have in your hands, released this morning, Repsol has implemented a new group reporting model by business segment. I know that that is complex, but let me say that the aim is to be fully transparent and adapting this reporting model to a new perimeter, where we have a minority shareholders in some of our businesses, and that is pushing us to change, to give you, in a transparent way, the more simplified information we can. The revised framework aligns our reporting with how the company currently manage and evaluates business performance, reflecting both the incorporation of strategic minority shareholders in two of our divisions, and the increased relevance of joint ventures within our business model.

Moving on to Vishal, sorry detailing the documents.

Youre, having your house released this morning.

Repsol has implemented a new group reporting model.

By business segment, I know that that is complex.

Let me say that the aim is to.

B.

Fully transparent and adapting.

This reporting model.

Two new perimeter, where are we halfway of minor retiring shareholders and some of our businesses.

And that is pushing us to change to give you not transparent way a more simplified information.

We can.

Base framework aligns our reporting with how the company currently manage and evaluate business performance.

Reflecting both the incorporation of strategic minority shareholders in two of our diabetes Jones and the increased relevance of joint ventures, we think our business model.

Josu Jon Imaz: In addition, the company seeks to align all its financial information with the financial statements prepared under IFRS, which are not impacted. The reporting segments remain unchanged. However, under the new model, the contribution of joint ventures previously integrated by proportionate consolidation is now recognized using the equity method. Upstream production and reserves will continue to be reported based on Repsol's effective interest in its joint ventures. The main measure of segment performance is the adjusted net income, presented net of the income attributable to minority interest and excluding special items. For 2025, adjusted net income was EUR 2.6 billion, a 15% decrease over the comparable figure in 2024. Cash flow from operations was EUR 5.4 billion, 8% higher year-over-year.

In addition, the company seeks to align or financial information with the financial statements prepared under I S. R S, which are not impacted.

The reporting segments remain unchanged however, under the new model the contribution of joint ventures previously integrated by proportionate consolidation.

He is now recognized using the equity method.

Upstream production and reserves will continue to report base on <unk> effective interest in joint ventures.

Our main measure of segment or from US is the adjusted net income.

Net of the income attributable to minority interest and excluding special items.

Sure.

25, adjusted net income was $2 6 billion euros.

15% decrease over the comparable figure in 2024.

Cash flow from operations was $5 4 billion euros, 8% higher year over year.

Josu Jon Imaz: Net CapEx stood at EUR 2.7 billion, which compares to a EUR 5.1 billion net investment in 2024, including the rotation of assets announced in December, and cashed in this month, in February. Net CapEx was EUR 2.5 billion. Net debt closed at EUR 4.5 billion, a 0.5 increase over 2024, and a EUR 1.2 billion reduction over Q3 2025. Excluding leases, net debt closed at EUR 1.6 billion, so roughly 5% of the capital employed of the company. Leverage ratio stood at 14% by year-end. As I mentioned now, 5.5%, excluding leases.

Net capex stood at $2 7 billion users, which compares to <unk>.

Five 1 billion net investment in 'twenty 'twenty four.

I mean, the rotation of hope was announced in December.

On the cash in this month in February net Capex Rose two 5 billion euros.

Net debt close up to $4 5 billion euros.

Five increase over 2024.

And one.

One 2 billion reduction over the third quarter of 2025.

Excluding leases net debt closed at one 6 billion, so roughly a 5%.

The capital employed of the company.

<unk> ratio stood at 14% by year end and as I mentioned now five 5% excluding leases.

Josu Jon Imaz: Under the previous reporting model, full-year cash flow from operations reached EUR 6.1 billion, slightly ahead of guidance announced last time in October, and 13% higher over 2024. Net CapEx was EUR 3.5 billion under the previous reporting model, so the former one, in line with guidance, earning at EUR 3.3 billion, when we are including the asset rotation that, as I mentioned, was cashed in this month, in February. Looking briefly at the evolution of the main macroeconomic indicators in 2025. Brent price average $69 per barrel, 15% lower year on year, driven by OPEC production increases, geopolitical uncertainty, and commercial tensions. The Henry Hub averaged $3.4 dollar per million BTU, 48% above 2024 figures, driven mainly by the continued ramp-up of North American LNG exports.

Under the previous reporting mobile four year cash flow for an operation reached $6 1 billion users.

Ideally ahead of guidance.

I know, it's just timing of October.

17% higher over 2024.

Net capex.

It was $3 5 billion euros under the previous reporting model. So the former one in line with guidance.

And at three.

<unk> three 3 billion when we are including the outpost rotation. That's the same as your own gross caching each month in February.

Looking briefly at the evolution of the main macroeconomic indicators, including 25.

Brent.

Price averaged $69 per barrel, 15% lower year on year.

Driven by OPEC production increases your political uncertainty on commercial insurance.

Henry hub operates $3 $4 per million Btu.

48% evolve 'twenty 'twenty four figures driven mainly by the continued ramp up of our North American LNG exports.

Josu Jon Imaz: In Europe, the TTF reference was 12% higher, mostly due to better demand and tighter inventory levels. Repsol's refining margin indicator increased 20% year-on-year, mainly due to stronger middle distillate differentials. On the exchange rate, the dollar weakened against most major currencies, including euro, averaging 1.13 dollars per euro, a 5% depreciation versus 2024. Continuing with upstream performance. 2025 saw a strong delivery across the business as we continue to high-grade the portfolio with new projects and optimizing our legacy assets. Full year adjusted net income was EUR 957 million, 7% lower year-over-year, reflecting lower oil realizations, a weaker dollar, divestments, and a lower contribution from equity affiliates, partially offset by higher gas prices.

And in Europe, there to give a reference was 12% higher mostly due to better demand and tighter inventories of us.

<unk> refining margin indicator increased 20% year on year, mainly due to a stronger middle distillates to differentiate on the exchange rate. The dollar weakened against most major currencies, including Europe, Albert aging $113 per euro.

5% depreciation versus 2024.

Continuing with upstream performance drilling 25 show a strong delivery across the business as we continue to high grade the portfolio with new bricks and optimizing our legacy assets.

Full year adjusted net income was 957 million euros, 7% lower year over year, reflecting lower oil realizations have weaker dollar.

Divestments and a lower contribution from equity affiliates, partially offset by higher gas price.

Josu Jon Imaz: Production averaged 548,000 barrels equivalent per day at the higher end of guidance, and 4% lower than in 2024. The higher volumes in Libya and the UK were more than offset by divestments and natural decline. Excluding disposals, 2025 production was 2% higher year on year. In Libya, the stabilization of the country allow us to reach our highest production level since 2012, exceeding 300,000 barrels per day in gross terms. In unconventional, representing around 30% of our volumes, we continue to accelerate activity in Marcellus and Eagle Ford as the market evolves into a more bullish outlook for US gas. Development activity across the portfolio focused on the efficient delivery of projects for which we took FID in recent years.

Well, it's actually an aggregate 548000 barrels equivalent per day at the higher end of guidance.

And 4% lower than in 2024.

The higher volumes and D beyond the U K were more than offset by divestments and natural decline.

Excluding disposals 2025 production was 2% higher year on year.

In Libya.

Initiation of the country allow us to reach our highest production level since 2012 exceeding 300000 barrels per day in gross terms.

In our conventional representing around 30% of our volumes, we continue to accelerate activity in Marcellus and Eagle Ford as the markets evolve into a more bullish outlook for years gosh.

Development activity across our portfolio focused on the efficient delivery of breach for which we took.

In recent years in.

Josu Jon Imaz: In Trinidad and Tobago, the Cypre and Mento projects reached first gas in April and May, respectively. In the Gulf of Mexico, Leon-Castile delivered first oil in September. In Brazil, Lapa Southwest is nearing completion and is expected to start up before the end of this quarter, and in Alaska, development of the first phase of Pikka is close to full completion and expected to begin production in March. This flagship project with meaningful growth potential will contribute to reverse the greater state of Alaska's production decline. Together, these key five projects are expected to contribute 80,000 barrels of low breakeven, low CO2 intensity barrels in 2027. With respect to portfolio management, we continue to strengthen our fundamentals through active management of our assets, making the business more resilient, transparent, and profitable.

<unk> Tobago this hyper and Minto Briggs reached first gas in April and May respectively. In the Gulf of America Young cash to deliver first ore in September.

In Brazil led by southwest is nearing completion and is expected to start up before the end of this quarter.

And in Alaska development of the first phase of Picker is close to completion and expected to begin production in March.

Our flagship <unk> with meaningful growth potential.

We will contribute to reverse the great state of Alaska production decline.

Together.

This D. Five breaks are expected to contribute.

80000 barrels of low breakeven.

Low <unk> intensity bubbles in 'twenty.

27.

With respect to portfolio management, we continue to strengthen our fundamentals through active management of our assets, making the business more resilient transparent and profitable last.

Josu Jon Imaz: Last year, we complete our exit from Indonesia and Colombia, consistent with our strategy to concentrate operations in more material and better margin geographies. In the UK, we complete a strategic agreement with NEO Energy to combine our assets in the North Sea, and in December, the partners agreed to incorporate TotalEnergies UK to the venture. Repsol will own a 24% stake of the resulting entity, to be called NEO NEXT+, and the new company is projected to produce around 250,000 barrels a day in 2026. This alliance will allow us to unlock value by combining operational synergies with disciplined financial execution. Completion of the deal is expected in the first half of this year, 2026. In our upcoming CMD, we will have the opportunity to discuss in detail our next steps in this division.

Last year, we will complete our exit from Indonesia, and Colombia, consistent with our strategy to concentrate operations, even more material and better marketing geographies.

In the UK, we complete our strategic agreement with new energy to combine our assets in the North Sea and in December the partners agreed to incorporate total energy U K two debenture.

Repsol will own a 24% stake of the resulting entity to be called Neonics, plus and the new company's priyanka to produce around 250000 barrels a day in 2026.

This alliance will allow us to unlock value by combining operational synergies we see.

In financial extra Coachella.

<unk> of the deal is expected in the first half of the year 2026, and our upcoming <unk>, we will have the opportunity to discuss in detail on next steps.

Sure.

Josu Jon Imaz: For 2026, our focus will be on Alaska's ramp-up to ensure we reach 80,000 barrels of gross production by Q3, the preparation for the liquidity event, and the resumption of operations in Venezuela. In this regard, last week, the US administration issued new licenses that provide the legal framework we need to resume our oil and gas operations in the country. Continuing now with industrial, full year adjusted net income was EUR 963 million, EUR 484 million below 2024, mainly due to a lower contribution from refining, chemicals, and the trading business. The blackouts that impacted the Iberian Peninsula in April had a material impact on results. In the refining business, uncertainties around tariffs deteriorated the margin environment in the first part of the year.

For 2026, our focus will be and I'll ask us ramp up to ensure we reach 80000 borrowers of gross production by the first quarter.

The preparation for a liquidity event on the assumption of operations in Venezuela.

In this regard the last week the U S administration issue needed that agencies that provides the legal framework, we need to resume our oil and gas operations in the country.

Continuing now with industrial our four year adjusted net income was 963 million euros.

184 million below 2024.

Mainly due to a lower contribution from refining chemicals and the trading business.

Blackouts that impacted their very own finished dania bridge had a material impact on results.

In the refining business uncertainties around tariffs deteriorate the margin environment in the first part of the year.

Josu Jon Imaz: A stronger diesel, gasoline, and NAFTA spread supported the gradual recovery of margins towards year-end, with indicator reaching in November its highest level in more than two years. Repsol margin indicator averaged $7.9 per barrel, $1.3 higher than in 2024. The premium over the indicator was $0.7 per barrel. The utilization of distillation capacity averaged 83%, which compares to an 88% rate in 2024. Negatively, as I mentioned before, impacted by the consequences of the blackouts, and the conversion units operated at 95%, which compares to a 100% utilization rate in 2024. In 2026, the indicator has averaged $5.5 year to date. We expect margins to remain healthy, supported by improved economic activity, higher structural gasoline demand, and low inventories.

A stronger diesel gasoline and naphtha spreads supported the gradual recovery of margins towards year end with indicator, reaching in November is highest level in more than three years Repsol.

Repsol is marching to indicate their operating expense of $9 per Barbara.

1.3, Doris higher than in 2024.

The premium over an indicator or cedar point $7 per barrel.

Utilization of distillation capacity upper H, a 83%, which compares to 188% rate in 2024 negatively as I mentioned before impacted by the consequences of the blackouts and the combustion units operated at 95%, which compares to 100% utilization rate.

Go for.

In 2026th indicates our house Highbridge 552 year to date.

We expect margins to remain healthy supported by improved economic activity higher spectrum gasoline demand.

And low inventories.

Josu Jon Imaz: In chemicals, Repsol's margin indicator was 20% higher than in 2024, mainly driven by lower feedstock prices. Even so, the business incur a loss as market conditions remain challenging in Europe, with flat demand, higher relative cost comparing with some other regions in the world, and large product imports. On this environment, we remain committed to our strategy of reducing breakevens and expanding margins through differentiation. In this direction, the expansion of Sines in Portugal is expected to start operations in the second half of 2026. With regard to the transformation of our facilities, we continue to drive key initiatives in renewable fuels. Starting with Puertollano, the retrofitting of our former gasoline units to produce HVO is expected to commence operations next quarter.

Chemical <unk> margin indicator was 20% higher than in 2024, mainly driven by lower feedstock prices.

Even so the business incurred a loss as market conditions remain challenging in Europe with.

That demand higher relative cost combining with some other regions in the world.

And a large product imports.

Environment, we remain committed to our strategy of reducing breakeven ish and.

And expanding margins through differentiation it is election day expansion.

Expansion of <unk> in Portugal.

Is expected to start operations in the second half of 2026.

With regard to the transformation of our facilities will continue to drive key initiatives you have renewables fuse.

Starting with first triangle, the retrofitting of our former sort of unit to produce HBO expected to commence.

Operations in this quarter.

Josu Jon Imaz: This facility will join our advanced biofuels plant in Cartagena to reach 0.5 million tons of production capacity per year between both plants, and a total of 1.5 million tons biofuel capacity at group level. A potential new retrofitting project is currently under evaluation. In Tarragona, construction of the eco-plant have received approval at the beginning of last year, 2025, and the project moves ahead towards starting production in 2029. Repsol has already secured its first offtake contract for the renewable methanol to be produced in this facility. Finally, in renewable hydrogen, we took the final investment decision for our first two large-scale electrolyzers to be constructed in Cartagena and Bilbao, with a capacity of 100 MW each, and construction of a third large-scale electrolyzer in Tarragona progresses towards FID approval in coming months.

This facility will join our advanced Biofuels plant in Cartagena to reach <unk> 5 million tons of production capacity per year between both plants.

And our total of one 5 million tons by your fuel capacity.

Roop level.

Ah potentially on the new retrofitting Breo is currently under evaluation.

<unk> construction of the Echo plan to receive approval of the beginning of last year, when Ethernet Phys and move ahead doors starting production in 2029.

Repsol has already secured its first offtake contract for the renewable Mcdonald to reproduce in these facilities.

Finally renewable hydrogen.

Took the final investment decision for our first two large scale electrolyze constructed in Cartagena in Bilbao.

With a capacity of 100 and metal sheets and construction of our first large scale electrolyte in Tarragona progress or stores.

Approval in coming months.

Josu Jon Imaz: Moving now to customer, full year adjusted net income was EUR 754 million, 17% over 2024, thanks to a higher contribution in all business segments. EBITDA reached EUR 1.4 billion, a 20% improvement year on year. This implies achieving our 2027 strategic target two years in advance, perfecting the resiliency of our core legacy business, and also let me underline the increasing contribution from power and gas retail, and our multi-energy offer to our customers. In mobility, sales of road transportation fuels were 11% higher than in 2024, being now at the level of the pre-pandemic sales. The normal business deliver a robust contribution margin growth in Spain, up 12% year on year, and in aviation, results benefit from sustained demand growth.

Moving now to customer Ford year, adjusted net income of <unk> 764 million euros, 17% over 2024. Thanks.

Thanks to a higher contribution of all business segments EBIT.

EBITDA reached EUR, one 4 billion euros, a 20% improvement year on year.

This implies that you've been pretty <unk> seven is thought that your target for years not months, reflecting the resiliency of our core legacy business.

And also then the underlying increase in contribution from power and gas retail.

Hum.

Multi energy offered to our customers.

Really do you say to yourself wrong Road transportation fuels were 11% higher than in 2024.

Being now.

The level of the pandemic.

Shares.

They don't know what the business deliver a robust contribution margin growth in the spin.

At the 12% year on year and in aviation results benefit from sustained demand growth let.

Josu Jon Imaz: Let me add that approximately 60% of our Spanish network already provides multi-energy solutions, with more than 1,500 service stations offering fuel that is 100% renewable. The number of digital clients reached 10.8 million by year-end, I mean, by the end of December, a 16% increase over 2024, contributing to an increase of business to customer sales in service stations. Waylet app, you know, that is our app leading the Spanish retail businesses, keeps on growing in users and in transactions, reaching 89 million transactions in 2025, 10% above 2024. Finally, in power and gas retail, we add more than half a million customers, reaching a record figure of 3 million clients by December.

Let me add to that approximately 60% of our Spanish network already provides multi energy solutions with more than 1500 service stations offering.

This 100% renewable.

The number of digital clients reach.

10.

By year.

But by year end I mean by in December a 16% increase over 2024 contributing to an increase of our business through customer sales and service stations, while it up you know.

Sure.

Our after leading the Spanish.

Businesses.

From growing initiatives Amin transactions, reaching.

89 million transactions in 2025, 10%.

The evolve 2024, finally empower on gas retail we have more than half.

Our medium customers reaching.

Record figure of 3 million clients by December.

Josu Jon Imaz: Repsol has maintained a steady growth trend since we entered in this business in 2018, almost multiplying by 4 our customer base since the acquisition that year of Viesgo. Turning to low carbon generation, we continue to execute our renewable strategy, bringing new projects into operation while rotating assets to crystallize value, maximizing returns and limiting our financial exposure. The adjusted net income reached EUR 53 million, EUR 77 million higher compared to 2024, supported by higher low-carbon production. The average pool price in Spain was EUR 66 per MWh, 4% higher than in 2024. The power generated by Repsol reached 11.6 TWh, 49% higher year-over-year. Renewable generation was 7.7 TWh, 34% higher year-on-year.

Repsol has maintained.

The growth trend since we enter in this business in 2018, almost multiplying by four.

Our customer base since the acquisition that year of a B S.

Turning to low carbon generation will continue to execute our renewable strategy.

Bringing new projects into operation, while never taking assets to crystallize that.

Maximizing returns and limiting our financial exposure.

The adjusted net income reached 53 million euros 77 million higher compared to 34% supported by higher low carbon production yes.

The average pricing of Spain, where 66 euros per megawatt.

Merrill will tower.

4% percent higher than in 2024.

The power generated by Repsol reached 11, six terawatt hour, 49% higher year over year.

Renewable generation losses, seven seven Terawatts hour, 34% higher year on year.

Josu Jon Imaz: We add 2.2GW of new capacity under operation this year, 2025, achieving our year objective for 2025 and bringing total capacity to 5.9GW by year end. As of today, installed capacity has reached 6GW of renewable power. We were able to rotate 1.8GW through three different transactions in the US and Spain. In the US, we divest a stake in a solar portfolio that included Fry and Sicarias, and reached an agreement to divest a stake in Outpost solar farm, including around $200 million tax equity. In Spain, we divest a participation in a 400MW renewable portfolio in the first part of 2025. Let me say that since 2018, Repsol has developed and brought 5.1GW of wind and solar capacity into operation.

Great.

The two two gigawatts of new capacity under operation this year.

25.

Achieving over your objective for 2025 mm, bringing total capacity to five nine gigawatts by year end.

As of today and installed capacity reached six gigawatts.

Renewable power.

We were able to rotate to one eight gigawatts through three different transactions in the U S and Spain in the U S. We divested our stake in our solar portfolio not included five Hickory, yes.

We haven't reached an agreement to divest our stake in outposts solar firm.

Including around 200 million tax equity Netbank, we divest our participation in a 400 megawatt renewable portfolio in the first part of a 2025.

And didn't you say that since 2018 Repsol has develop brought five one gigawatts of wind and.

Solar capacity in preparation.

Josu Jon Imaz: 100% of the more than 3GW fully commissioned have already been successfully rotated, with an average equity IRR above 10%. To date, EUR 2.7 billion of capital has been captured through a combination of asset-level debt, tax equity investment, and value accretive asset rotation strategies. Of the remaining capacity, 1.4GW are close to commercial operation date. Around 79% is currently at an advanced stage of negotiation. To finalize, let me highlight that last year we had a new 805MW wind pipeline for our Spanish portfolio, with the aim of hybridizing production at our combined cycle in Escatrón, in Aragón, securing the power supply for the future data center to be built in this area by a third party.

100% of the more than three Gigawatts fully.

Commission have already been successfully affected return average equity or are above 10%.

To date.

$2 7 billion euros of capital has been captured through a combination of asset level debt tax equity investment.

And value accretive asset rotation in our studies.

The remaining capacity one for <unk>.

Close to commercial operation date.

Our own 79% is currently at <unk>.

On a stage of negotiation.

And to finalize then the highlight that last year, we added a new 805 megawatt wind pipeline.

Spanish portfolio with the aim of Hybridizing production at our combined cycle in Saskatchewan.

Securing the power supply for the future data center to be built in this area by a third party.

Josu Jon Imaz: Regarding our outlook, in our Capital Market Day, we will provide the regular guidance for, for the periods, together with projection to 2028. For 2026, our planning assumptions are based on a Brent price of $60 to 65, a Henry Hub of $3.5 to 4, and a refining margin indicator between $6.5 and 7.5 per barrel. In the upstream, we are expecting a higher production in a range from 560,000 to 570,000 barrels per day.... Under this scenario, shareholders distributions will continue improving, including cash dividends and share buybacks. The first buyback program was approved by the board yesterday for up to EUR 350 million and will start in coming days.

Regarding our outlook in our capital market day, we will provide the regular guidance for.

All of the periods together reaction to 2028.

For 2026, our planning assumptions.

Our assumptions are based on a Brent price of 60 to $65.

Henry hub of three five to $4 and our refining margin indicator of between six five and 7.5 dollars per barrel.

In the upstream we are expecting a higher production in a range from <unk>.

560 to 570000 barrels per day.

Under this scenario shareholders distributions will continue improving.

Including cash dividends and share buybacks.

The first.

Buyback program was approved.

By the board yesterday for up to 350 million users and will adapt in coming days.

Josu Jon Imaz: Regarding our decarbonization pathway, having delivered on the short-term commitments set for 2025, we will modulate medium-term goals while keeping long-term objectives according to the current regulatory and business framework. To summarize, 2025 proved to be another year of solid delivery for Repsol, with a strong progress across the priorities defined in our previous strategic update two years ago. Let me enumerate some of these progresses. First, between 2024 and 2025, we have allocated a total of EUR 3.8 billion to remunerate our shareholders at the higher end of our cash flow from operations distribution range. We have increased the dividend per share by 39%, and we have reduced our capital by 9%, canceling 112 million shares.

Regarding our government decision pathway have been delivered on the short term commitments set for 2025.

We will mobilize medium term goals, while keeping long term objectives. According to the current regulatory and business framework.

To summarize 2025 roof to be.

Another year of solid delivery for Repsol.

With a strong progress across our priorities define previous to the update three years ago.

And then me and Numerate. Some of this progress is first between 'twenty 'twenty four and 'twenty 'twenty five we have allocated a total of $3 8 billion euros to remunerate, our shareholders at the higher.

And of our cash flow from operations distribution range.

We have increased the dividend per share by 39%.

We have reduced our capital by 9% selling 112 million shares.

Josu Jon Imaz: We have evolved our EMP portfolio into a more profitable business, which is now more resilient and predictable, and we have transitioned to more normalized CapEx levels. In industrial, we are accelerating efficiency and competitiveness, reinforcing the role of free cash flow, generating trading business, and building an advantage low carbon platform to reinforce our leading position in Iberia. In the commercial side, we are developing an ambitious multi-energy proposal that will strengthen Repsol's competitive position in our core markets. In renewables, we continue developing our pipeline, rotating assets in early stage of production to deliver or require rates of return under the principle of unlimited, capital exposure to this business. Considering this significant progress towards our targets, and in light of changes to the macroeconomic, regulatory, and geopolitical backdrop, next month in March, we will refresh our strategic framework.

We have both our <unk> portfolio into a more profitable business, which is now more resilient and predictable.

We have transitioned to more normalized capex of us.

In industrial we are accelerating efficiency and competitiveness reinforcing the role of free cash flow generating trading business.

And building, an advantaged low carbon platform to reinforce our leading position in Iberia.

In the commercial side, we are developing an ambitious proposals.

Tourism reps.

<unk> competitive position in our core markets.

In renewables, we continue developing our pipeline rotating assets in every stage of production to deliver our required rates of return.

Under the principle of a limited.

Capital exposure to this business.

Considering the significant progress towards our targets and in light of changes to the macroeconomic regulatory.

And your political backdrop next months in March we will refresh our strategic framework.

Josu Jon Imaz: The core principles: a growing and predictable remuneration, a strong balance sheet, and disciplined growth will remain at the basis of our plan. We will share with you further details in less than three weeks, so, see you then. With this, I'll turn it over to Pablo as we move on to the Q&A today. Thank you very much.

The core principles.

Predictable remuneration.

A strong balance sheet and discipline growth will remain at the basis of our plant.

We will share with you further details in less than three weeks. So see you then.

With this I turn.

Don over to Pablo as we move on to the Q&A today. Thank you very much.

Pablo Bannatyne: Thank you, Josan. Before opening the Q&A, I anticipate there is a lot of interest on the details of the Capital Markets Day to be unveiled in March. As you can imagine, at this point, we cannot share details, so please adjust your questions accordingly. I would also kindly ask participants to limit yourselves to a maximum of two questions. If time permits, we will try to cover more in a second round. To begin, I would like the operator to remind us of the process to ask a question. Please, operator, go ahead.

Thank you, yes, Ian before opening the Q&A I anticipate there is a lot of interest from the days of the capital amount because they to be.

In March.

You can imagine at this point, we cannot share Dave's. So please just questions. Accordingly, I would also kindly ask participants to limit yourself to a maximum of two questions. If time permits we will try to cover more in a second round two.

To begin I would like to do operator to remind us of the process to ask a question. Please operator go ahead.

Operator: Thank you. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again.

Thank you.

To ask a question. Please press star one on your telephone and wait for your name to be announced.

To withdraw your question. Please press star one on one again.

Pablo Bannatyne: Thank you, operator. Let's get started. Our first question comes from Michele Della Vigna at Goldman Sachs.

Thank you operator, let's get started our first question comes from Miguel <unk> Goldmine.

Goldman Sachs.

Michele Della Vigna: Very much, and looking forward to the Capital Markets Day. It looks like quite a few countries that have been difficult to operate in are offering better fiscal terms and opening up more to companies. You certainly had the example of Venezuela, of Libya. I was just wondering if you could lay out what you think could be the opportunities there in Venezuela to get paid for your normal activities, which I think would be around EUR 250 million, but also to potentially ramp up production, and in Libya, if, if you're seeing an opportunity to grow production there. Thank you.

Very much and looking forward to the capital markets day looks.

It looks like quite a few countries that have been difficult to operate in our offering better terms and opening up more to companies.

Certainly had the example of Venezuela.

Yes.

Wondering if you could lay out what you think could be the opportunities there in Venezuela to get paid for your normal activity, which I think would be around 250 million euros, but also to potentially ramp up production and <unk>, if youre seeing an opportunity to grow production there. Thank you.

Josu Jon Imaz: Grazie mille, Michele. I mean, let me say that Venezuela now is in a significantly better situation than Venezuela was two months ago. I think that a new window of opportunity for a better future is opening in, in, in Venezuela. And it's also, I mean, let me say, a better situation for our sector in that country. And I think that is now time to help consolidate this improvement, strengthening the social stability and economic development in the country. You know, Michele, because we have talked about that for years, that Repsol has consistently been a responsible operator in Venezuela. Our commitment to the country's future has been clear, and now we are fully dedicated to contributing to this brighter future.

Jimmy let me get at it.

Yeah.

Let me say that.

Venezuela now is in.

He has significant the better.

Situation that Venezuela was two months ago.

I think that.

They are new.

Window of opportunity for a better future as hoping in Venezuela.

And the is also I mean, let me say a better situation for our sector in that country.

And I think that there is no time to to help consolidate this improvement.

Threatening the social stability and economic.

Development in the country.

Micheletti, because we have a talk about that for years that Vic solar has consistently been a responsible operator in Venezuela.

Our commitment to the country's feature has been clear.

And now Hey.

We are fully dedicated to contribute into this brighter future.

Josu Jon Imaz: You know that we were supported by the licenses over the last days that are going to assist and allow Repsol to work in this framework. We appreciate the American support and the American approach to our role and our operations, and we are working also closely with Venezuelan authorities and our partners at PDVSA to move all that in a positive direction. Let me say that our initial contribution, and we are, of course, we have, let me say, and we received this open flag five days ago, so now we are preparing everything to restart and to resume our operations in a direct way in the country.

And you know that we were support.

Bye.

The licenses over the last days that are going to assist.

Hello rock salt to to work in this framework.

We appreciate it.

Marie can support and the American approach to a rule on our operations.

And we are working also closely with Minnesota authorities and our partners have been the best shot.

To move and all that in a positive direction, but let me say that our initial contribution and we are of course rehab for let me say and we've received these open frac.

Five days ago. So now we are preparing everything to a restart on to resume.

Our operations in a very good way in the country.

Josu Jon Imaz: Our initial contribution will be to continue supplying gas to stabilize the country, providing the gas that the national power system needs. We will resume our regular dynamic in gas supply, and the process of lifting contractual condensates and oil cargos will restart to pay for the gas supply. So we are preparing everything to start lifting these contractual cargos. At the same time, we are also preparing the bottlenecking project to increase gas production in Venezuela to a plateau of 640 million cubic feet per day from the current 580. So, an increase of 10%, volumetrically speaking. Regarding the oil production, we will also restore normal operations.

<unk> contribution will be to continue supplying gas to stabilize the country, providing the guy says that the national power system needs.

We will assume a rig ramp dynamic in gas supply.

In the process of lifting contractual like condensates, and oil Comparables will restart to pay for the gas supply. So we are preparing everything.

Start.

Lift in this contract won't cargos.

At the same time, we are also preparing our debottlenecking project to increase gas production in Venezuela to a plateau of 640 million.

<unk> fits.

<unk> per day from the current $508 an increase of 10% roughly speaking.

Regarding the oil production.

We will also restore normal operations.

Josu Jon Imaz: That includes, and we are starting to engage our team in the operations, investing in production, facility renewal, such as pumps and some other facilities, considering the introduction of a rig in the area, and working to reverse the decline in oil production. And simultaneously, of course, we will restart the commercial lifting of oil cargos within the framework of our contracts in Petroquiriquire, exporting oil from Venezuela to Spain, the US, or any other suitable destinations that is allowed by the license framework. Additionally, we are also preparing a plan for the Petrocarabobo oil field, where also we see potential to increase this quick win initial production leverage in the existing infrastructure.

That includes a and we are starting to engage our team in the operations investing in production facility renewal such a power amps on some older.

Facilities, considering the introduction of our re <unk> in the area.

And working to reverse the decline in oil production.

And simultaneously of course, we will restart the commerciale lift in our food categories within the framework of our contracts in petrol community.

Exporting oil from Venezuela to expand the U S or any older.

They will destination that is hello by the license framework.

Additionally, we are also preparing a platform for the.

Petro kind of mobile oilfield, where also we see potential to increase these green initial.

Transactional liberate H in India kicking in infrastructure.

Josu Jon Imaz: So, it's early, perhaps, Michele, to provide specific figures, because as I mentioned, we are in the first days of this new dynamic. But let me say that my view is optimistic about Venezuela, about the country, about the evolution of the political, social, and economic environment in the country, and optimistic about the hydrocarbon sector that has to play a significant role in this stabilization and growth of Venezuelan society and Venezuelan country. We see now that we could be able to increase oil gross production in Venezuela by more than 50% over the next 12 months. We have the ambition, and we see plenty of room to get this target of multiplying by 3 the production within 3 years.

E 70, perhaps.

Thank you Kelly.

To provide specific figures because as I mentioned, we are in the first days of these new dynamic.

The debt.

Let me say that my view.

E C.

Domestic about Venezuela.

Although the country.

How about the evolution of the political social and economic environment in the country.

And optimistic about the hydrocarbons sector that has to play a significant role in this or stabilization and growth of Venezuelan society in Venezuela in country.

And we see now.

We could be able to increase.

Oh gross production in Venezuela by more than 50% over the next 12 months.

We have the ambition and we see.

Plenty of room to get these target of multiply multiplying by three the production weekend three years, but I think that what is important to put the focus in the short term. So a 50% of all increase oil production, increasing coming 12 months.

Josu Jon Imaz: But I think that what is important is to put the focus in the short term, so, a 50% of oil increase, oil production increase in coming 12 months. And, we are, we are confident that the cash flow from normalized commercial activities that is going to, to be resumed, in the short term, under the sixteen contractual framework, is going to finance this, this effort. So we are confident that a normal commercial relationship will be able to finance this win-win approach, because, I mean, the country is going to, to get more production, more revenues coming from royalties and from taxes. We are going to have more cargo, more cargos to, to, to pay for, for this operation. And of course, we, we remain open to exploring other opportunities for the future.

And the we are we are confident that the cash flow from normalized commercial activities that is.

Going to to be ever assume.

In the short term.

The 16 contract framework is going to finance. These DC for it. So we are confident that our normal commercial relationship would be able to finance this.

Green Green approach, because I mean, the country's going to to get more production more revenues coming from royalties on from taxes, we are going to have more cargo.

More cargoes to pay for this operation and of course, we remain open to exploring other opportunities for the future.

Josu Jon Imaz: I mean, as Pablo said, I understand that you want to have all the figures about that, but as I said, step by step, it's probably too early, and further details will be provided in 3 weeks in the capital market day event. But again, let me say that I remain optimistic, that I see that a new opportunity is open in Venezuela, and we see room to start and normalize operation and a commercial activity, pushing in the direction of increasing the oil production in the country. Repsol is fully committed to this pathway that was open 5, 6 weeks ago. Going to Libya, I mean, I also have a positive view. I mean, we rely on Libya. We see it as more stable.

I mean.

As Pablo said I understand that.

You want to have all the figures about that that as I said the step by step is probably too early and further details will be provided.

In three weeks in the capital market day event, but again, let me say that I remain optimistic that I see that a new opportunity is opening in Venezuela.

And we see room to start our north my life operation.

On our commercial activity.

Pushing into that extra one of increasing the oil production in the country and Repsol is fully committed to this pathway that was open.

Five six weeks ago going to Libya, I mean and.

I also have.

Our positive view I mean, we rely on it.

We see it stable, we see more security on the ground.

Josu Jon Imaz: We see more security on the ground. As I mentioned in our last call, I think that, I mean, we underline the important contribution of Marshall Haftar and the Libyan army in this positive evolution of the country, thanks to the effort deployed over the last years to combat terrorism, that is important, of course, for Libya, but let me say that it's also an important contribution of the Libyan army to European security that has to be recognized. I mean, over last year, 2025, we had our production that, I mean, in the quarter average, a figure above 300,000 barrels a day gross, that could be 39,000 barrels net Repsol.

As I mentioned in our last call I think that I mean.

We underline the important contribution of.

Marshall hotter and the Libyan Army this positive evolution of the country. Thanks to the four deployed over the last years to combat the reason.

That is important of course for linear, but let me say that this is also an important contribution.

Maybe on the army two new European security that has to be recognized.

I mean over the last year.

25.

We have the production that to I mean in the quarter I'll Bridge.

A figure of about 300.

How some barrels a day gross that could be 39.

<unk> thousand borrowers net repsol bit.

Josu Jon Imaz: But the production, thanks to new wells that were explored in 2025, 27 wells, achieve a maximum peak of 326,000 barrels at the end of the year. We are continuing with this infill drilling campaign, and we expect to have our production at the end of this year, 2026, close to 350,000 barrels/day. That, roughly speaking, will be a figure close to 40 to 43 thousand barrels/day net Repsol. But, I mean, we are also rely on the future of the country. We go on in the exploration campaign, we are exploring the two areas, the NC-115 and the NC-186 areas. On top of that, you know that, in February, we were awarded with two new exploration blocks.

<unk> the production thanks to new wells that were spud in 2025.

27.

Our chief a maximum peak of 326.

Hello, Sam borrowers at the end of the year.

We are continuing with this infill drilling campaign.

We expect.

Through half of.

Our production again of the year 'twenty 'twenty six close to 350000 barrels a day.

Roughly speaking will be a figure close to 40 to 43000 borrowers are they net Russell.

But I mean, we are also rely on the future of the country. We go on in desperation campaign, and we are exploring the tour yesterday N C 115 on the N C 186 areas.

Top of that.

You know that in February we were awarded US with two new exploration blocks one of them is.

Josu Jon Imaz: One of them is onshore in the Sirte area, and the other one is offshore in the north part of, I mean, in the northern part of Benghazi. So, a positive evolution in social and economic terms in the country, and in security terms, a production growth and the full commitment of Repsol with the country. Thank you. Grazie mille, Michele.

And shortened the shifts to area.

Other one is offshore in the north part of or I mean that in the northern part of Mckesson. So.

Positive evolution is social and economic terms in the country and in security terms.

Production growth and the full commitment of rapport with the country. Thank you.

Alessandro Pozzi: Thank you, Michele. Our next question comes from Alessandro Pozzi at Mediobanca.

Thank you again at our next question comes from Alessandro Pozzi Mediobanca.

Yeah.

Okay.

Alessandro Pozzi: Hi there. Thank you for taking my questions. I have two. The first one on cash flow guidance for 2026. I'm not sure if you want to keep some guidance for the at the Capital Markets Day, but I was wondering if you can perhaps give us some color on the moving parts under the new reporting model for cash flow from operations and CapEx. The second question also always on cash flow is on asset rotation. I was wondering if you can maybe share with us your thoughts in terms of asset rotations for 2026 and maybe potential preparation for the liquidity event for your US assets.

Hi, there.

Thank you for taking my questions.

I have two.

The first one on <unk>.

Cash flow.

Guidance for 2026, I'm not sure if you want to get some guidance for the.

Capital markets day, but I was wondering if you can perhaps give us some color on the moving parts under the new reporting model for cash flow from operations and kind.

<unk> picks up.

The second question also always on cash flow.

On the asset rotation I was wondering if you can maybe shanghai's your.

Thoughts in terms of us real estate asset rotations for 'twenty 'twenty six.

<unk>.

The potential preparation for the liquidity event.

Forward your U S assets that we've heard about a potential combination obuda. Another American players about was wondering if it can even give us your thoughts on the progress there and maybe a final question. If I can just squeeze in a last one customer.

Alessandro Pozzi: We have heard about a potential combination with another American players, but I was wondering if you can give us your thoughts on the progress there. And maybe a final question, if I can squeeze in a last one. Customer has grown a lot, the gap between customer and industrial or upstream, not as much, not as big as in the past. Can you give us your thoughts about the growth potential for customers? Thank you.

It has grown a lot the gap between that customer and industrial all upstream, but not as much not as big as in the past can you give us your thoughts about the growth potential for customers. Thank you.

Josu Jon Imaz: Grazie, Alessandro. I mean, believe me, that, Pablo is looking at me and saying, "Don't enter in the cash flow guidance for 2026." But, I mean, I'm going to break a bit my deal with Pablo. So, I'm not going to talk about the 2027, 2028 path, but, I think that it's fair to talk about the guidance for 2026. So under the assumptions I mentioned before, Alessandro, in the speech, that means, our Brent price, something in between $60, $65 a barrel, Henry Hub $3.5 to 4 per million BTU, and refining margin, something in between $6.5, $7.5 a barrel.

Glad to Alexander of Hess, I mean believe me that the probably is looking at me and saying don't enter into cash flow.

For 2026, but I mean, I'm going to break habit might deal with tableau.

I'm not going I'm, not going to talk out all the debt.

27 28.

A bus.

I think that it's fair to talk about the guidance.

For 2026.

And there.

The assumptions I mentioned before Alessandro English speech that means.

Our Brent price.

Anything in between.

The 60 to 65.

Hi, Barbara.

Henry hub $354 per million Btu.

Refining margin something in between $6 $5 7.5 dollars a barrel.

Josu Jon Imaz: The cash flow under the new metrics of the new reporting model, expected as guidance for this year, 2026, will be in the range of EUR 5.5 to 6 billion. Let me say that this figure compares with, under the same reporting model metrics, EUR 5.4 in 2025. Let me also remind you that in 2025, the metrics in terms of commodity prices and environment were higher. So higher Brent price and higher refining margin. That means that in an environment that is not going to be so good as it was in 2025, we see that the cash flow for operation is going to be significantly higher this year, in 2026. Why is that? Because, I mean, it's not something magical.

The cash flow and the venue metrics of that new reporting model.

The expected.

Our guidance for the year 226 will be in the range of five five.

6 billion euros, let me say that this figure compares with under the same rep parking mobile metrix with 5.4 in 2025.

Disney also.

Remind you that.

In 2025.

The metrics in terms of commodity prices in an environment, where a higher so higher Brent price on higher refining margin that means that in an environment.

That is not going to be so good as it was in 2025, we see that the cash flow from operations is going to be significantly higher this year in 2026.

Why is that because I mean, it's not the it's not something magical it's because first in the EMP, we have new production more production or more per year, I mean, I'm Kirsty, Alaska and so long.

Josu Jon Imaz: It's because, first, in the EMP, we have new production, more production and more projects. I mean, Leon-Castile, Alaska, and so on. In the industrial side, we have the chemical business improvement with Sines, with a high molecular weight polyethylene plant of Puertollano, that is going to start operations in Q2 2026. We have significantly better margins for biofuels, and we have a higher production of HVO, comparing with 2025. On top of that, as you mentioned in your last question, Alessandro, the customer business is improving its position comparing with 2025. And, I mean, all that is behind this cash flow production.

In the industrial.

Side, we have as they can be chemical business improvement with Chinas <unk> with.

With the high molecular weight polyethylene.

Plant of Oh, I was just going to start operations in the second quarter of 2026.

We have significantly better margins for Biofuels, and we have a higher production of HBO and comparing with 2025 on top of that.

You mentioned in your last question Alessandro.

Customer business is improving.

Its position combined with a 2025.

<unk>.

I mean, all that is behind these cash flow production on top of that the renewable power production and he's also contributed to this cash flow growth and that this growth is a b.

Josu Jon Imaz: On top of that, the renewable power production is also contributing to this cash flow growth, and that is what is behind. Going to the CapEx, and again, sorry for, I mean, comparing both reporting models and so on, but I will try to be clear, simplifying things. If we consider, and we take the net CapEx figure in 2025, under the new IFRS model, EUR 2.7 billion, what we expect in CapEx terms this year, net CapEx terms in 2026, is the same figure, EUR 2.7 billion. Let me say that I think that last year, the gross CapEx under this, these figures was EUR 4.1 billion in 2025, and this year, the gross CapEx is going to be lower.

Behind them going to the Capex and again, sorry for I mean comparing ball.

Reported mobile it sounds so long, but I will try to be clear simplify and thinks.

If we consider and we take the net capex figure in 2025 under the new I F. R. S mobile two 7 billion euros.

We expect in Capex terms the year net Capex terms in 226 is the same figure two 7 billion euros.

Let me say that they think that last year.

The gross capex under the dish these figures was.

<unk> one <unk>.

In 2025, and the here the gross Capex is going to be lower that means that this gear, we rely a bit less on.

Josu Jon Imaz: That means that this year, we rely a bit less on disposals. I mean, clearly speaking, there are no any significant disposals in our budget this year, and what we have is a normal dynamic in terms of rotation of our renewable assets, under this principle of contained financial exposure to this business. I mean, growing in some way, being self-financed by the dynamic of the business. In this sense, let me underline that we already have a cash in of EUR 230 million in February, coming from outpost, and now we are in the last part, in the advanced last part of the process, to dispose or rotate, better said, 700 megawatts in Spain.

Disposals, I mean generally speaking they have no any significant disposals.

The year and what we have is a normal dynamic in terms of a rotation of all.

In renewable assets under this principle of our contained a financial exposure to this business I mean growing in some way being self financed by the dynamic of that business. In this sense, let me underline that we already have our kashi.

230 million euros in February coming from our past and now we are in the last park in Atlanta last part of the process.

Disposal of uptake, but as I've said 700 megawatts in our space. So we are comfortable with the figure of $2 7 billion euros as net capex figure under the new reporting model.

Josu Jon Imaz: So we are comfortable with a figure of EUR 2.7 billion as net CapEx figure under the new reporting model, for 2026. Going to the liquidity event. I know, Alessandro, that probably, I'm going to be boring repeating the same message I launched in the last calls, but now it's even clearer than before. I mean, our upstream today is better than the upstream we had three months ago, and three months ago, the upstream was better than the upstream we had six months ago. So, why? I mean, Venezuela is crystal clear. We could understand that that is a clear upside to the figures I mentioned before, because let me say that we are not including Venezuela in the cash flow from operations I mentioned before.

For 2026.

Going to a liquidity event.

Are there signs of that.

Probably I'm going to be more in repeating the same message I launched in the last.

In the last the course, but now it's even clear than before I mean, our upstream to date.

It's better than the absolutely we had three months ago and three months ago. The upstream goes better than the after you have six months ago. So it right.

Right.

Israel is crystal clear.

Understand that these are clear upside to the figures I mentioned them before because let me say that we are not including Venezuela and the cash flow from operations I mentioned before I mean, we are not.

Josu Jon Imaz: I mean, we are not. That probably we could, I mean, check some figures before the Capital Markets Day, but Venezuela will be an upside for the figures I mentioned before. Let me say in this sense that, I mean, we are not in a hurry to prepare or to jump, better said, into this liquidity event. We are preparing the company. We are going to have, in coming weeks, next month, Alaska in operation. Leon-Castile, the production is growing. Before the end of this quarter, we are going to achieve 20,000 barrels a day net production in the Leon-Castile project. We are going to work hard to have the ramp up of Alaska producing 80,000 barrels a day gross by Q3.

That's probably where.

We can I mean.

Check some figures before the capital market day that Venezuela will be an upside for the figures I mentioned before.

And the let me say in the sense that I mean, we have not we have not in a hurry to to prefer or two jumped but deficit into this liquidity event. We are preparing the company. We are going to have in coming weeks at next month's Alaska and operate.

Steel production is growing.

Before the end of this quarter, we are going to achieve a 20000 buttressed a day net at actual in.

In the longer period.

We are going to work hard to have the ramp up of Alaska, producing 8000 borrowers are they gross by the third quarter. So we are in some way improving our portfolio improving our upstream and let me say it.

Josu Jon Imaz: So, we are, in some way, improving our portfolio, improving our upstream, and, let me say, the later, the better, in some way. So, open, of course, to this improvement of our upstream, these potential opportunities we could have in the, for the liquidity event. But again, as I mentioned, improving this business, and I think that the customer growth potential for this year, I already answered your question, Alessandro, perhaps for coming three years, we will talk about that in the Capital Markets Day. Grazie mille.

The later the better in some way so it open of course to DC to DC.

For this.

Improvement of the.

All of our upstream.

These potential opportunities with grew half in the for the liquidity event, but again as I mentioned, improving this business and I think that the customer growth potential for the year I already answered your question Alessandro.

Perhaps for coming three years, we will talk about that in the capital market day that you're meeting.

Operator: Muchas gracias.

With those guys.

Alessandro Pozzi: Thank you very much, Alessandro. Our next question comes from Alejandro Vigil at Santander.

Thank you very much Alessandro our next question comes from Alejandro we feel at Santander.

Alejandro Vigil: Hello. Thank you. Thank you for taking my questions. In line with the previous comments, and also very interested in to understand the net debt position of the company, because looking at 25 versus 26 could be the moving part. And also to understand that in the reporting, we have some data about the net debt level in the subsidiaries, no? EUR 6 billion in the upstream and EUR 3.2 billion in the low carbon business. If you can elaborate in the whole picture of the company in terms of net debt. And the second question is about refining.

Hello. Thank you. Thank you for taking my questions.

In line with the previous comments.

Very interesting and to understand the bid the net debt position of the company because.

Looking at 25 versus 26.

<unk> could be the boom embarked.

And also to understand that in the reporting we have some data about the net debt level in the subsidiaries no 6 billion and that's been on three two in the low carbon business.

You kind of elaborate in the in the whole picture of the company in terms of net debt.

And the second question is about refining ICU relatively.

Alejandro Vigil: I see you relatively, or I would say, constructive about refining margins, looking at the scenario you are discussing this morning, if you can elaborate in the moving parts as well, in this view. Thank you.

I would say constructive about refining margins looking at the <unk>.

It's an idea you are discussing this morning, if you can elaborate in the moving parts as well.

Thank you.

Josu Jon Imaz: Gracias, Alejandro. Thank you. I mean, going to the net debt position, I mean, again, to comparing figures, at the beginning, better said, at the end of 2024, the net debt of the company was EUR 4 billion, under, including leases, of course, under the new reporting model. At the end of 2025, is 4.5 billion EUR. So theoretically, an increase of EUR 0.5 billion. Let me elaborate to say that this net debt has been flat over the year. I tried to explain that. Because we have two financial effects that are not really associated to a net debt change over the year. First, remember that after the closing of NEO NEXT, we had an increase of the financial debt, in EUR 1.1 billion.

Yes, hi, thank you.

Going to a net debt position I mean again to comparing figures.

At the beginning.

At the end of 'twenty 'twenty four.

The net debt of the company was 4 billion euros under including leases of course under the new reporting model.

The end of 2025 Ace <unk> four 5 billion euros. So theoretically an increase of <unk> 5 billion years, let me elaborate to say that this net debt has been flat over the year I tried to explain that.

Because we have two financial effects that are not really associated to our net debt change over the year first remember that after the closing of Neo next we have an increase of the financial debt.

1.1 billion euros.

Josu Jon Imaz: I mean, because that was formerly in the decommissioning commitments of the company in our balance sheet, but due to the new structure, it passed to be part of the financial debt, so an increase of 1.1. And because the combined effect of hybrids, remember that we issue a hybrid in the last quarter, 725 million euros, I had in mind, minus the purchasing part of 100 of a former hybrid. So all in all, we improved the net debt in EUR 600 billion because this financial hybrid effect, I mean, these two effects, they had an increase of net debt of EUR 500 million. That is exactly the figure of the increase of net debt over the whole year.

Because that was formerly in the commissioning commitments of the company and our balance sheet that due to the newest director.

Pass to be part of the financial debt. So an increase of one one and decrease the combined effect of higher.

Remember that we issue.

Hybrid in the last quarter.

100, and 725 million you say, how the mine minus the arbitration part of one hundreds of our former hybrid so all in all we improved the net debt is 600 billion euros, because these finance your hybrid effect I mean these.

Two effects.

Good day edge.

Got it.

Increase of net debt of 500 million euros that is exactly the figure of the increase of net debt over the four years. So for that reason why I'm wondering if you're some way that we.

Josu Jon Imaz: So for that reason, I elaborate in some way that we are going to, we had a flat debt over the year. Saying that, we also expect, I mean, under the assumptions I explained before, that at the end of this year, we are going to have, roughly speaking, a debt that is going to be, probably flat, comparing with the debt we had at the beginning of, 25. Going to the subsidiaries, I mean, let me underscore the fact, Alejandro, that the debt of the company is the debt I mentioned now. What we try to do, of course, is to try to optimize, in financial terms, the debt that every, company subsidiary in the group, could have as a debt in its structure.

We are going to.

We have a flat debt over the year.

In that we also expect I mean under the assumptions I explained before that at the end of the year, we are going to do.

Through half roughly speaking of that that is going to be.

Broadly flat combined with the debt we had at the beginning of a 25.

Going to the subsidiary I mean, hey.

I, let me stress the fact Alejandro that the debt of the company Easter did I Miss you know what we try to do of course is to try to optimize in financial terms the debt that every.

A company subsidiary in the group.

Half of that in infrastructure, but all of this combined that is included in the total debt of the group and the total debt of the company. So the figures are the figures I mentioned before of course, we try it with our partners in every business to optimize the stacked the deck.

Josu Jon Imaz: But all this combined debt is included in the total debt of the group, in the total debt of the company. So the figures are the figures I mentioned before. Of course, we try agreeing with our partners in every business to optimize the debt of these subsidiaries we have, in some cases, in the upstream, to ensure the investment grade of the vehicle, as we demonstrated in the emission of high-yield bonds in summer, and so on. In the E&P business, we are also preparing the business for the liquidity event, and that is quite logical, taking into account the target I mentioned before. Going to the refining margins. So, crystal clear about what is happening today.

All of these subsidiaries we have in some cases in the upstream to ensure the investment grade.

Carlos we are as we are.

<unk> demonstrated in the Indiana, Michigan, Ohio.

Bonds in summer and so on so.

And in the E&P business. We are also preparing the business for the liquidity event and that is quite logical taking into account the target I mentioned before.

Going to the refining and.

Marquis.

Yeah.

We talked to you about what is happening today as of today. They indicator has been five five year 'twenty 'twenty six.

Josu Jon Imaz: As of today, the indicator has been 5.5 this year, 2026. Comparing with last year, 2024, that in this period was $5.4 a barrel, the indicator. These days, the margin is at $6.5 a barrel. The premium over the... You remember that we had in our budget $1.4 a barrel as a premium for the refining margin for the whole year. As of today, the premium is at around $2.5 a barrel. That means that the margin capture as of today, over this year, 2026, is at $8 a barrel in our refining margin. Saying that, I mean, we have a probably positive view about refining margins for this year. Why?

And comparing with last year at 224 that in these periods were $5 $4 a barrel.

Okay.

These days the margin is up six five doors are Barbara.

Hey, <expletive>.

The premium.

Over the you remember that we have in our budget 1.4 dollars a barrel a premium for the refining margin for the whole U as of today. The premium is at around $2 $5, a borrower that means that the margin capture as of today.

Although this year 2026 east at $8, a bummer, you don't refining markets, saying.

Saying that I mean behalf.

Robin Li positive view about refining margins for the year.

Why it first I mean, if we if we go through the fundamentals what happened.

Josu Jon Imaz: First, I mean, if we go to the fundamentals, what happened over the last year, what has happened, sorry, over the last year. First, the shutting down of refineries in the whole world were at around 1.1 million barrels a day of capacity, mainly Europe, US, Japan, Australia, and China. New capacity has been at around 1.1 million barrels a day. The increase of demand worldwide is at around 850,000 barrels a day. So there is some kind of pressure coming from the demand on that capacity that is not growing. If we go to the current capacity, I mean, my view is that Dangote in Nigeria is going to achieve in coming months-...

Yes.

What has happened is already over the last year first the.

The shutting down of refineries in the whole world.

We're at around one 1.1 medium borrowers holiday of capacity, mainly in Europe, U S, Japan, and Australia and China.

The new capacity has been at the wrong, one 1.1 million borrowers Friday.

The increase of demand worldwide is at around 800, 850000 borrowers abate.

So there is some kind of pressure coming from the demand on that capacity that is not growing.

If we go to the current capacity I mean, my view is that the <unk> in Nigeria is going to achieve in coming months.

Josu Jon Imaz: A normal production, as, I mean, fulfilling the expectations they have. So this part, in some way, is included in the increase. In Ormeka, in Mexico, probably they are going to need more investment in infrastructures to be able to get the expected production they forecast. If we go to the fundamentals, the demand and pressure on gasoline margins is very high in our markets, in Europe. And going to the diesel, we see that because the shortage we have in Europe, this diesel is very dependent, and has a strong upside, depending on two factors. The first, the sanctions enforced for products coming from Russia and refined in some other parts of the world, entering European markets, so that's in some way, putting a pressure on diesel margins.

Normal production.

I mean fulfilling expectation with a hospital. This park in some ways included in the increase.

Mackay in Mexico, probably they are going to need more investment in them for sectors to be able to get the expected production.

And they are forecast.

And if we go to the fundamentals.

The demand and pressure on gasoline margins is very high.

Markets in Europe.

And going to the diesel.

We see that because the shortage we have in Europe. These days.

So he's a very dependent.

And Hassan is torn upsides, depending on two factors the first.

<expletive> the sanctions in first.

Sure.

Products coming from Russia, and refine and some other parts of the war entering the European market. So that's some way putting a pressure on diesel margins.

Josu Jon Imaz: And because this, let me say, lack of strategic autonomy in Europe related to diesel, any geopolitical event has a direct impact on diesel margins in Europe. So, I don't have to elaborate. Today, the potential geopolitical risks we are seeing in the world. So for all that, I mean, being present, we are quite comfortable with the refining margin indication. We are guiding, forecasting, or elaborating. Gracias, Alejandro.

Because this then you say lack of strategic alternatives in Europe related to diesel any geopolitical event has a direct impact on diesel margins in Europe, So and I don't have to elaborate.

Today, the potential geopolitical risks we are seen in the war. So for all that I mean being present, we are quite comfortable with the refining margin indication we are.

Yeah.

Guiding forecasting or elaborate.

Yeah.

Matthew Lofting: Thank you. Muchas gracias.

Thank you Jonathan.

Pablo Bannatyne: Thank you, very much, Alejandro. Our next question comes from Guilherme Levi at Morgan Stanley. Please go ahead with your question.

Thank you.

You might as Alejandro our next question comes from <unk> Levy from Morgan Stanley. Please go ahead with your question.

Guilherme Levy: Hi. Hello, thank you for taking my questions. I have two, please. Firstly, if we could start with refining, could you comment on the fire that you had in the Cartagena refinery this year? How quickly do you expect the topping unit that is currently down to return? And what should we have in mind in terms of financial impact related to this incident, apart from the lower utilization impact itself, is there any sort of CapEx that needs to be made for it to be active again? And then secondly, a few in the downstream team. In January, we had the announcement that two of your downstream competitors in Iberia are starting a potential merge of their refining and distribution operations.

Hi, Hello, Thank you for taking my questions I have two please.

Firstly, if we could start with refining could you comment on the fire that you had to cut the Eni refinery. This year how quickly do we expect the top community that is currently down to return and what should we be having mined in terms of financial impact related to these things.

Apart from being a lower utilization picked itself is there any sort of topics that need to be made for for each be extra mccann.

And then secondly shoe in the downstream theme and.

In January we had the announcement that you have your downstream compassion.

If you are searching a potential merge of their refining and distribution operations and I was skiing, choupique, you're bringing on the potential impact that that transaction could.

Guilherme Levy: I was keen to pick your brain on the potential impacts that that transaction could have to your marketing business in Portugal and Spain. If it comes to a point in which they are requested to sell down some stations in Portugal, would you be interested to further increase your presence there? Thank you so much.

To your marketing business in Portugal, and Spain, and come to a point in which they are requested to sell down some stations in Portugal would you be interested to further increase your presence there. Thank you so much.

Josu Jon Imaz: Going to the Cartagena fire, I mean, I don't know if everybody knows what happened, but we had on 25 and 26 January a leak in an atmospheric crude distillation unit, in one of them, in Cartagena. That, I mean, affecting the bottom parts of this distillation unit. We had a fire, and the fire was fully extinguished using internal resources and with no personal injuries reported. I mean, let me say that the rest of the units of the refinery, excepting this distillation unit, worked and are working in a normal way. So that means that the conversion units are fully operational in Cartagena.

And I hope, we got over a year.

Hey.

I'm going to the kind of tracking as far I mean, I don't know if everybody knows what's happening that we had then and on January 25, 25 26.

Nick.

In the animal streak crude distillation unit in one of them and got the Hana.

And that is affecting the bottom part of this of this distillation unit.

We had a fire under fire was fully extinguished using internal resources and with no personal.

It reported I mean.

Let me say that the rest of the units of the refinery except in dis.

The distillation unit.

Workers are working in a normal way so that means that the conversion units are fully operational in Cartagena.

Josu Jon Imaz: We are going to have an effect in terms of the repairing of this distillation unit, that is going to last at around eight months. Because we have a combined and integrated system, and you know that our distillation is not at 100%, it's not usual. What we try is to cover and to fulfill the conversion units. We are solving, in logistic terms, the normal operation of the conversion, using the products from other refineries. So from the point of view of the market, from the point of view of conversion, from the point of view of operation, the situation was fully normalized in the first days. There is an economic impact, as you mentioned, because I mean, logistic cost and so on.

We are going to have any effect in terms of our of the repairing of these distillation unit.

He is going to last at around eight months.

Because we have a combine and integrate that system and you know that our destination is not the 100% there's no dishwasher they what we try to.

Colbert and to fulfill the conversion units, we are absorbing used to terms.

The normal operation of the commercial use.

Using the products from other refineries.

Not a lot.

From the point of view of the market from the point of view a conversion from the point of view operational situation was fully normalized in the first days.

And there is an economic impact that you mentioned, because I mean that used to cost times, how long roughly speaking the cost is going to be at around six 8 million ears.

Josu Jon Imaz: Roughly speaking, the cost is going to be at around EUR 6 to 8 million per month during 3 months, because all the rest is covered by an insurance company and so on. So we could have something in between EUR 18 to 25 million, all in all, as an impact of this incident. That's roughly speaking, that is with the best information we have today, the impact of that event we had on 26 January. On top of that, I mean, let me say that this merge, first, is indicating the attractiveness of the Spanish and Portuguese market for this business, and that is, let me say, positive. And let me say, with my whole respect, both of them, they are good competitors.

During three months because all the rest is covered by our by our insurance company and so on so we could have something in between 18 and 25 million euros. So all in all an impact of D. C. D. C incident, that's a.

Roughly speaking that is with the Victor Oh, sorry, with the best information we have today.

The impact of that event, we have on January 26.

On top of that I mean.

Let me say that these merch.

First is indicating the attractiveness of the Spanish and Portuguese market for these business and that is that would you say positive and let me say we may hold respect.

Yeah.

Both of them they have good competitors.

Josu Jon Imaz: and, having a strong competitor and a good competitor in our market, I think that is good news for the market, and it's good news for Repsol. We like, competition, and, let me say that probably it's too early to talk about what could happen after the closing of this merging process and so on. But, I think that is positive to see, dynamism in the service station market in Spain, and Portugal. That is in some way fruit of the positive momentum and experience we are seeing in our markets in commercial terms. Thank you, Guilherme.

Having a strong competitor a good competitor in your market I think that is good news for the market niche with news for Repsol, we like competition.

And then you say that probably is too early to talk about what happened. After the closing of this merger process and so on but I think that this is positive to see dynamism.

Dynamism and the service just as your market in Spain, and Portugal. This is highway fruit of the positive momentum and experience we are seeing in our markets in commercial terms.

Thank you.

Yeah.

Operator: Perfect. Thank you.

Perfect. Thank you.

Pablo Bannatyne: Thank you, Guilherme. Our next question comes from Irene Himona at Bernstein Société Générale.

Thank you. Our next question comes from Eileen Humana.

Bursting associated the Internet.

Irene Himona: Thank you very much, and congratulations on a successful year in terms of your asset rotation program. In the upstream, you exited, you sold assets in Indonesia and Colombia last year. You also reported a CO2 emissions reduction of nearly 300,000 tons. I wanted to ask if you can give us a sense, roughly, what proportion of that emissions reduction was organic, if you like, versus emissions sold, please? And then my second question is on capital allocation priorities, and thank you for guiding on 2026 CFFO and net CapEx at your new scenario. And I don't know if you want to leave these for the CMD, but I wanted to ask about 2026 upside and downside to your base case, given the, you know, the near impossibility of getting the commodity right. So the balance sheet is strong.

Thanks, very much and congratulations on a successful year in terms of fuel our centralization program in the upstream you exited you sold assets in Indonesia and Colombia.

And you also reported ACO to emissions reduction.

Nearly 300000 tons. So I wanted to ask if you can give us a sense roughly what proportion of that emissions reduction was organic if you like versus.

Verses ambitions Psalms. Please and then my second question is on.

Capital allocation priorities and thank you for guiding on 2010 to 16 or so of net capex.

New scenario and I don't know if you want to leave these for the CMV, but I wanted to ask about.

26, upsides and downsides to your base case given the.

The near impossibility of getting the commodity right.

So the balance sheet is strong.

Irene Himona: In a higher $70 Brent scenario and in a lower $50, let's say, stress scenario, should we assume that your key lever would be the share buyback, or would you also look at changing gross capital expenditure? Thank you.

In a higher $70, Brent scenario and in a lower $50, let's say stress scenario should we assume that your key lever would be the share buyback or would you also look at change.

Change in gross capital expenditure. Thank you.

Josu Jon Imaz: Thank you, Irene. I mean, first, let me elaborate that because in the reporting of Scope 1 and Scope 2 emissions, we only consider operating assets. The inorganic disposals in the upstream, I mean, Indonesia and Colombia, they don't have any impact in this Scope 1 and Scope 2 emissions reported. So, the improvement comes mainly from the continuous efficiency effort coming from the industrial area, refining and chemical, that in some way has been offset this year, partially by the increase of the activity of the CCGTs, the combined cycles in Spain. You know that after the blackout of 28 April, the Spanish power grid operator, Red Eléctrica, dramatically changed the operation rules, opening or giving more role to the CCGTs to avoid frequency and tension volatility in the grid.

Thank you.

I mean first let me elaborate that.

Because in the reporting of our scope, one and two emissions, we only consider operating assets.

At deep <unk>.

Inorganic disposals.

In the upstream I mean, Indonesia, and Colombia, they don't have any impact in this and scope one and scope two emissions report itself.

The improvement comes.

Mainly from the continuous efficiency effort coming from the industrial area refining and chemical that in some way has been it offsets the year, partially by the increase of the activity of the <unk> the combined cycles.

In Spain, you know debt to after the blackout of April 28, the Spanish power.

Great operator, a rent electric got dramatically change the operation on roofs.

Yeah.

Opening or giving more wrong to the CCG dis to avoid a frequency on pension volatility integrate and for that reason I mean, the operational level of Cct's since April has been higher than before so.

Josu Jon Imaz: For that reason, I mean, the operational level of our CCGTs since April has been higher than before. So, the net is an improvement with a real improvement coming from more efficiency in our refineries and chemical plants, and more emissions coming from the CCGTs, because the activity for this operational mode in the Spanish electric system has been higher. So if we go to our capital allocation priorities, but first, let me say that, when we talk about Brent, our central scenario goes to, from $60 to 65 dollars a barrel. As of today, the Brent has been, over this year, at $66 a barrel, as average, and today the price is around $70, $71 a barrel.

The net is an improvement with.

I I real improvement coming from more efficiency in our refineries and chemical plants.

And more to emissions coming from the <unk> because the activity for this operational mode in the Spanish electric system has been a higher.

So if we go through our capital allocation.

Priorities.

But first let me say that.

When we talk about Brent.

Our central scenario rose from 60 to $65 a Barbara.

As of today, they're Brent has been over the year at $66, a Barbara a submarine and today. The price is something around 70, 71 bullet shall Barbara and so I see more room for.

Josu Jon Imaz: So, I see more room for, with the current information, of course, things could change, as you perfectly know, Irene, but I see more room for upside than downside. As I mentioned before, we have upsides that are going to come for this Brent price, probably. Secondly, from Venezuela, as I mentioned before, I mean, the metrics of cash flow from operations in Venezuela are not; this potential improvement is not included in the range I mentioned before. We have to look at the impact that the extremely cold winter, January and part of February in North America, is having on our gas business, gas downstream business in North America, plus the Henry Hub price, because remember, the indication of price I gave before.

The current information of course things could change as you perfectly know Irene.

But I see more.

Yeah.

Room for error.

The upside than downside.

I've mentioned before we have a upside so that's how we're going to come.

For the spring price broadly.

Secondly from a Venezuela as I mentioned before I mean to the metrics of our cash flow from operations in Venezuela have not this potential improvement is not included in the range I mentioned before.

We have two.

To look at the impact that the extremely cold winter.

January and they are part of February in in North America.

Is having on our gas business.

Gas downstream business in North America, plus debt every hub.

Right because remember the indication of price I I I I I gave before.

Josu Jon Imaz: And, in case of having, let me say, $50 a barrel in the stress scenario, that, I mean, now is not the centralized area that, of course, could happen. I mean, you know that, we have the capacity in the oil side of the unconventional to reduce a bit the CapEx. In the gas side, of course, it's going to depend mainly from the, mainly from the Henry Hub, and let me say that our distribution guidance and our distribution priority is going to work under any scenario, positive or acid scenario. Thank you, Irene. Thank you very much.

And the engaged of Harbin.

And then you say you're at $50 a button in distress. They argue that I mean.

No it's not the central I'd tell you is that of course grew top and I mean, you know that we have the capacity in the in the oil side of the unconventional to reduce a bit the capex in the gas side of course is going to depend mainly from the mainly from the Henry hub.

And the and let me say that our.

Distribution.

Our guidance and our distribution priority is going to work under any scenario.

Positive.

<unk> scenario.

Thank you.

Thank you very much.

Pablo Bannatyne: Thank you very much, Irene. Our next question comes from Viraj Borkhataria at RBC.

Thank you very much hitting our next question comes from <unk> <unk> at <unk>.

We see.

Biraj Borkhataria: Hi, thanks for taking my question, and looking forward to the CMD. Just two questions. The first one's on asset rotations. You mentioned the smaller gap between gross and net CapEx this year. Is that a function of your view on the market and when it's best to transact, or is just a function of you having done a lot in the last couple of years, and so there's less assets going through the system? And then the second question is on the customer segment marketing. That business has done exceptionally well over recent years. You've sold, this is more for the CMD, but you've sold minority stakes in the upstream and renewables in order to provide those sort of value markers. Would you consider doing something similar for that segment? Thank you.

Alright, Thanks for taking my questions and looking forward to the CMA.

Just two questions. The first one is on asset rotations, you mentioned the smaller gap between gross and net Capex. This year is that a function of your view on the market and when it's best to transact or is just a function of you haven't done a lot in the last couple of years and so there's a list of assets going through the.

The system.

And then the second question is on the customer segment marketing.

That business has done exceptionally well over recent years.

You've sold this is more for the same thing.

<unk> sold minority stakes in the upstream and renewables in order to provide those value markers.

Would you consider doing something similar for that segment. Thank you.

Josu Jon Imaz: Thank you, Viraj. I mean, going to, as you said, the shorter gap between gross CapEx and net CapEx, the main reason is that in the EMP, I mean, we are not forecasting or seeing disposals in our portfolio. I mean, that could happen, of course, disposals or acquisitions, depending on the dynamic of the market. But remember that we had a clear target in the first years of this plan to reduce the countries where we were present in the EMP business, and now with 10, 11 countries, we are comfortable with. So, we are not factoring any disposal coming from the EMP business. And if we go to the low carbon or renewable generation business, I mean, our comfortability comes from two sides.

Thank you I mean.

Growing through it.

As you said the short term gap between the gross Capex.

And the net capex.

And the main reason is that in the E&P I mean, we are not.

Forecasting or seen.

The disposal of a portfolio that can happen of course is controversial acquisition, depending on the dynamic of the market, but if you remember that we have a clear target in the first years of this plan to reduce the countries, where we were a person in our MP business and now with 10 11 countries.

We are comfortable with so.

We don't we are not factoring any disposal coming from the E&P business and if we go to the <unk>.

To the.

The low carbon renewable generation business I mean, our comfort capability comes from two sides first because he knew Spain as I mentioned before.

Josu Jon Imaz: First, because in Spain, as I mentioned before, we have, at the end of the road, a rotation of 700 megawatts, that, I mean, is in the final part of the process, so we are comfortable with. We already rotated, in the US, asset, and the cash came, the taxes came just here, but the cash coming from, from the partner, came in this month, in February. And, I mean, that is the main reason for having, let me say, a shorter gap. First, the answer, we are not considering any minority investment, in this segment of, of marketing or customer-centric business.

Have a at the end of the road.

Our rotation of 700 megawatts.

I mean, you said the final part of the process. So we are comfortable with and we already are.

I'll take it in the U S. A outposts under caching came.

The taxes can you here, but the the the Kashi coming from our from the partner Kenny This month in February.

I mean that is the main reason for having let me say a short term gap.

<unk>.

First the answer.

We are not considering any minority divestment in this segment of our of our Av.

Off market you know customer.

Josu Jon Imaz: I mean, we are in the Iberian Peninsula with our industrial and customer businesses. They are, in some way, fully integrated. We have a common view about our leadership in the Iberian Peninsula, in energy terms, and what we have seen is that there is room for growth in this customer-centric business. So, we'll talk about that in the Capital Markets Day, but we anticipate that two years, the growth forecast by 2027, in 2025, that we are going to go on in this growth roadmap. Our mobility business, including the non-oil part, is growing and is going to go on in this sense, growing in results. Our retail power business is clearly growing in number of customers and in cash flow from operations.

The business I mean.

And we see that I mean, we are in the Bergen pennies of that with our industrial and the.

Customer businesses. They are in some way and fully integrated we have a common view about our leadership in their very own finish line energy tense.

And the what we have seen is that there is room.

For growth in this.

Cash from our centric business, so and we'll talk about that in the capital market day that we anticipated to use their growth.

Our cost by 2027 in 2025, but we are going to go on in these growth roadmap.

Sure.

D business. It doesn't they don't know what part is growing and this is going to go on and defense growing results. Our retail power business is clearly a growing number of customers and in cash flow from operation.

Josu Jon Imaz: Our lubricants is also performing the right way and growing. The aviation segment is very positive. I mean, let me say that that is a quite interesting reference because, I mean, it, it's of course the work of our team and the good performance of our team, and also taking advantage, taking advantage of the place where we are. This year in 2025, we sold the 10% of the total SAF sold in Europe. And that is, I mean, first, because we have a strong position in Iberia, that because Iberia has a strong position in aviation terms, in Europe and in the world. We received last year, more than 100 million visitors, tourists in Spain.

<unk> is also performing the right way and growing the aviation segment is a very positive I mean, let me say that.

That is a quite interesting reference because I mean it is of course is there work of our team and the good performance of our team and also taking it up on day, taking advantage of a place where we are it does here in 'twenty five we sold 10% of the total shop.

Sold in Europe.

And that is I mean first because we have on our strong position in Alberta that because Hibernia has signed a strong position in aviation terms and in Europe and in the wall. We received last year 100 more than 100, new.

Visitors tourist in Spain, I mean, the second country and the number of visitors and after France and the second one in revenues after the U S. So I mean, all that is pushing our.

Josu Jon Imaz: I mean, the second country in the number of visitors, after France, and the second one in revenues after the US. So, I mean, all that is pushing our mobility businesses up, and that is going to go on in coming years. So in this context, we prefer to go on in this advantage we have. We are leading in terms of brand, in terms of digital support for these businesses, with this multi-energy offer, and we are going to go on growing. In this business, as let me say, that is quite hidden, because we are always talking about CMP, refining and so on, and that is okay... but, if you check the figures, and the figure I have in mind, probably, perhaps I'm wrong, but this business had a free cash flow of EUR 1 billion in 2025.

Mobility business is up and that is going to go on in coming years. So in this context, we prefer.

To go on in this advantage. We have we are leading in terms of brand in terms of digital support for these businesses with these multi and your view of where we are going to go on growing in this business. Sometimes you see that these quite hidden because we are always talking about GMP refining and so on and.

Okay.

If you check the figures on the figure I have in mind, probably perhaps I'm wrong, but this business had a free cash flow of 1 billion euros in 2025, I mean, that's I'm on growing so Oh, no. We don't have any any intention of our.

Josu Jon Imaz: I mean, that's growing. So, no, we don't have any intention of consider any minority divestment in this segment. Thank you, Bill.

All four of consider any minority divestment in the shipment. Thank you bill.

Paul Redman: Thank you.

Thank you.

Alessandro Pozzi: Thank you, Bill. Our next question comes from Ignacio Domenech at JB Capital.

Thank you yes. Our next question comes from.

You Dominic.

Capital.

Yeah.

Ignacio Doménech: Hi, yes, thank you for the presentation. Two questions for me. The first one is just wondering if you could provide an update on North America upstream. Okay, what are the plans for 2026 in terms of adding rigs, okay, in North America? And my second question is related with the blackout in Spain in 2025. I was wondering if the company's planning or what is the possibility that the company could receive a compensation from the economic loss of the blackout in the industrial operation? Thank you.

It has been before the presentation two questions for me the first one.

Just wondering if you could provide an update on the north country gobs too okay. What are the plans.

226 in terms of.

<unk>, Okay in North America on my second question is.

Related with the blackout.

<unk> 2025, so I was wondering is.

The Companys plan or what is the possibility that the company could receive a compensation from the continued loss of the of the blackout.

And the industrial operation.

Josu Jon Imaz: Gracias, Ignacio. Thank you. I mean, upstream North America, mainly three parts of the portfolio. Alaska. Alaska is going to start the first oil this quarter in March, and as I mentioned before, a ramp-up achieving 80,000 barrels a day gross. You know, that we retain a 49% of the stake in this project by Q3. So, and on top of that, I mean, I'm not going to elaborate now, but remember that in Alaska we have Pikka, we have Kuparuk, we have a clear possibility of growth in this state. And of course, we are working in the direction of the feed and so on about the analysis of a potential future FID for Pikka, but now fully focused on the production. Second, the Gulf of Mexico.

Hey, Good luck guys. Thank you.

I mean, Australia or something or you got mainly three parts of our portfolio.

Alaska, Alaska is going to start in the first story this quarter in March and as I mentioned before I ramp up actually been at 80000 borrowers are they gross you know that we retain a 49% of the stake in disparate by the third quarter. So I.

And on top of that I mean, I'm not going to elaborate now that remember that in Alaska, we have a bigger tool. We have Qualcomm, we have a clear possibility of growth in in decent state and of course, we are working in the direction of the feed and so on it about the analysis of a potential future if I D.

For pick up too, but now fully focused on the production second the Gulf of summer. He got there we have the production because we already had before that's our buckskin and sensing and we put in operation.

Josu Jon Imaz: There, we have the productions we already had before, that are Bakskin and Sensi, and we put in operation the Leon-Castile project. I mean, and perhaps I have a mistake, but today we have three wells connected. I think that we are going to connect the fourth one in May, June, and connecting the fourth one in May, June, we are going to achieve the net Repsol of 20,000 barrels a day. Going to the unconventional, we put in operation a rig in Marcellus in September. This rig is operating, and it's going to stay the whole year, 2026. And in Venezuela, sorry, in Eagle Ford, I was thinking, I mean, after so many questions about Venezuela.

The young cast your eye.

I I mean, perhaps I missed it but do they really have three wells connected I think that we are going to connect the first one in May June and connecting the first one in May June we are going to achieve the net of repsol of 20000 barrels.

Are they going to the unconventional.

We put in operation I read in Marcellus in September.

The rig is operating and is going to stay at a whole year 'twenty 'twenty six and then.

In Venezuela administered at I'm, sorry, you're going for.

I mean after show so many questions about Venezuela in Eagle Ford.

Josu Jon Imaz: In Eagle Ford, we put in operation a rig in October, I think, September, October, and we are going to stay there till Q2 of the year. Because, you know, oil price is not exactly at the point that the gas price is, so it's... And again, someone could think that, perhaps we could be more aggressive, putting more rigs and so on. I mean, remember the history of the unconventional. If you are prudent, if you, if you are fully focused in maintaining your high productions and so on, you could be clearly free cash flow positive in these assets. If you start increasing in a dramatic way, your CapEx, the risk of having inflation of cost in the area and so on, is always there.

We put in operational Arabian tolerant. He September October and we are going to stay there until the second quarter of the year and because you know.

It's not a sucky at the point that the gas price is always a and again someone cool thing that Oh.

How should we grew or be more aggressive for putting more rigs on so long I mean remember the history of the unconventional. If you are a problem. If you. If you are fully focused in maintaining your high production and so on and so on and you could be do you have any free cash flow positive in these assets. If you start increasing those romantic way your capex at the risk of Harbin.

The inflation of cost in the area and so long as always there. So we have a fully positive view, but.

Josu Jon Imaz: So we have a fully positive view, but in the framework of this financial primacy in the area. The blackout, you know, that there is still an ongoing investigation led by the regulator CNMC. I mean, I prefer not to enter in the public debate about the origin of the blackout, because I prefer to read this important analysis about what happened that day. You know, the consequences for Repsol. Let me explain, because remember that in April, May, June, we talk about three different events. One of them, nothing to do with the blackout. That was a problem with the distributor in Puertollano, and we had a secondary event in Cartagena that could be related to the origin of the blackout, but it's a different event.

In the framework of these financial problems in the area.

The blackout do you know that there is still an ongoing investigation led by the regulator.

C N and M C.

Prefer not to enter into a public debate about the Oregon and the blackout.

Because I prefer to read these important analysis about what happened that day.

The you know the consequences, if a rep. So linear speed because remember that you need.

It really.

May June.

We talk about three different events one of them nothing to do with the blackout that was a problem with a distributor in importer, you know and we have a secondary event in Cartagena.

That could be a real.

<unk> to the origin of the blackout, but these are different event going to a blackout the big blackout tougher April 28th the potential claim only of D. C bench is around it.

Josu Jon Imaz: Going to the blackout, the big blackout of 28 April, the potential claim only of this event is around EUR 125 million that we consider recoverable, not about the rest of events. I mean, we are waiting for this report to have more clarity about the potential responsables of these events. But in any case, we are going to start a claim in legal terms before the end of April, in the time where, in legal terms, this claim is allowed.

125 million a universe that we consider recoverable.

No doubt about the rest of events and the I mean, we are waiting for this report to have a more clarity about the potential responsible for D. C bench, but in any case, we are going to start a claim you gotta terms.

Before the end of April in the in that time, where.

In legal terms disclaimed its shallow I mean, I don't know what is going to happen because I don't have a crystal ball, but let me say and let me remind you a nephew that there was a resolution taken by the Spanish Supreme Court in 2022.

Josu Jon Imaz: I mean, I don't know what is going to happen because I don't have a crystal ball, but let me say, and let me remind you, Ignacio, that there was a resolution taken by the Spanish Supreme Court in 2022, ratifying a full compensation to Repsol's affiliate, Petronor, with EUR 18 million for those, those 12 minutes of blackout that we suffered at that time in, in Petronor, in one of our refineries, that of course provoked the, the, the full blackout and the shutdown of the refinery for days, and we were fully compensated. So roughly speaking, EUR 18 million.... It's a figure very close to the impact of every of our refineries of the blackout we suffer in April.

Ratifying a full compensation for prep source awfully petronel with 18 million liters four dose boast 12 meets.

<unk> needs of blackout that we suffer at that time in petrol or in one of our refineries and that of course would provoke the full blackout on the shutdown of the refinery four days and we were fully compensated. So roughly speaking 18 million users is a figure close to the impact of <unk>.

Three of our refineries of the blackout, we suffered in April because we have to consider that we have five refineries plus a three chemical sites.

Josu Jon Imaz: Because we have to consider that we have five refineries, plus three chemical sites, Puertollano, Tarragona, and Sines in Portugal. So, we are preparing this case, waiting for this report, that attentive to that. But in any case, we are going to work in legal terms to have a fair compensation for this impact on our industrial plants. Gracias, Ignacio.

Personally I don't stomach Rona and she is important so we are preparing this case waiting for this report.

The that attentive to that but in any case, we are going to work in legal terms to have a fair compensation for this impact on our industrial plants and actually I see okay.

Pablo Bannatyne: Thank you very much, Ignacio. Our next question comes from Fernando Abril at Alantra.

We talked about that.

Thank you very much.

Our next question comes from Fernando at Ethan Allen.

Alondra.

Yeah.

Fernando Abril-Martorell: Hola, hola, Josu and your equipo. A few questions, please, if I may. First, on upstream production, you closed the year with 544 thousand barrels, and you guide to 560 to 570. My question is: how should we think about the production ramp-up through the year, and where do you expect output to stand by year-end 2026? Second, on refining margins, you've mentioned they are a very strong refining margin premium year to date. So what are the main drivers, and how sustainable are them? And additionally, what is the potential upside you see from the possible recovery of Venezuela and crude cargos?

Well aim and I guess, you're on you keep them.

Two questions. Please if I may 1st on upstream production you close the year with them.

For 4000 barrels and you got to 560 to 570 <unk>. My question is how should we think about the production ramp up through through the year and where do you expect output to a standby by year end 'twenty six.

Second on refining margins. So you've mentioned that they are very strong refining margin premium year to date.

So what are the main drivers.

And how sustainable.

Of them and how do you see me what is the potential upside that you see from the possible recovery of Venezuela on crude cargos last recent press reports mentioning about the federal Supreme Court ruling for golf and I think the P. S. One.

Fernando Abril-Martorell: Last, recent press reports mention about the federal Supreme Court ruling for Galp, and I think BP as well, regarding the regional hydrocarbon tax in Spain. I don't know if you have similar claims. I don't know if there could be also a material financial impact, or recovery for you as well. Thank you.

Regarding the region on either a carbon tax in Spain, I don't know if you have similar claims I don't know if they could be also a material financial impact or recovery for you as well. Thank you.

Josu Jon Imaz: Buenas tardes y gracias, Fernando. Thank you. Going to the upstream production, I mean, the main increase is going to come from, as I mentioned before, the ramp-up of Leon-Castile, that today could be Leon-Castile in a production of net 12,000 to 13,000 barrels a day. And as I mentioned before, is going to go up to 20,000 barrels a day. Alaska, clearly speaking, is going to be one of the drivers of this growth.

When I started to say, let's yes, Fernando Thank you are going to the upstream.

I mean, the main increase is going to come from a as I mentioned before the ramp up of loan categories that today.

They could be.

Still up in the production of a net 12 13000 barrels a day and as I mentioned before he's going to two two to go up.

To 20000 barrels a day Alaska.

Generally speaking is going to be one of the all of the drivers of this growth and we have a positive impact and that.

Josu Jon Imaz: We have a positive impact that could be at around 10,000 barrels a day, roughly speaking, in UK, due to the first, the effect of the merge with HitecVision, creating NEO NEXT last year, plus the preemption process of calling the gas asset production, that could have a production at around 40,000 to 45,000 barrels a day, roughly speaking, gross, and was incorporated to the JV at the end of the year. So, on top of that, of course, you are going to see some natural declines, and so on. At the end of the year, we could have, after these ramp-ups, a production close to at around 580,000 barrels a day.

That could be at around 10000 barrels a day roughly speaking in U K due to the day.

First the effect of the merch within high Tech and tracking near next.

Yeah.

Yes they.

<unk> shown a process of culling, the gas and asset production.

Uh-huh production out there owns 40 45000 barrels a day roughly speaking gross.

We've also incorporated to the JV at the end of the year and so on top of that of.

Of course, you are going to ZIP some natural declines and so on.

At the end of the year, we grew half of these ramp ups are production closer at around 580000 barrels a day.

Josu Jon Imaz: The average of the year, because as I mentioned before, a part of this growth, Alaska, Leon-Castile, and so on, is going to happen over the whole year, so you have to take the average of the year. The average of the year is going to be at around 560, 570 thousand barrels a day. Refining premium, main drivers, of course, again, and take Fernando please as an indication of my comment, because I don't have a crystal ball. But there are two solid fundamentals for this increase in the premium and for the sustainability of the premium.

The average of the year, because as I mentioned before a part of this growth Alaska Christiana. So long this is going to happen over the whole year. So all you have to take the average of the year that each of the year is going to be at the wrong by 560 570000 barrels a.

Okay.

The refining and premium and main drivers.

<unk>.

Of course, it again and take a Fernando please I assigned indication you might comment because I don't have a crystal ball, but did have two solid fundamentals for this increase in the premium and for the sustainability of the Permian first.

Josu Jon Imaz: First, is that, and that we are seeing that in the market, so that is not, is not something that is going to happen in the future; it's going to be increased in the future, but it's happening today: the supply of heavy oil in the Atlantic Basin. And Venezuela is going to change the game, in this sense. So more heavy oil in the market means, first, a capacity to fulfill our conversion units, mainly cokers, that is higher, so a higher utilization of our conversion units. Plus, I mean, more pressure on prices, pushing prices down, in our discounts, increasing discounts in the case of heavy oil. So that is very important for our system, and it's very important for the premium we could capture.

Is that.

And that we have seen that in America or was that just not it does something that is going to happen in the future is going to be increasing their future, but it is happening today is the supply of heavy oil in the Atlantic Basin.

And Venezuela is going to change the game.

In D C in defence so more.

Heavy oil in the market.

First our capacity to fulfill our conversion units, mainly coker that is higher so a higher utilization of our of our conversion units plus I mean more pressure on prices.

Pushing prices down.

Discounts increasing discounts in the case of a of heavier chunks that is very important for our system and it's very important for the premium we can capture.

Josu Jon Imaz: On top of that, bios. Remember that, last year, I can't remember the exact figure, but we could have, a figure in average, close to $550, maximum $600 per ton, as a margin of HVO minus UKO, for the, the HVO and, and, and bios production. We, we, we were seeing, for the whole year, a figure close to 150 tons dollars per ton this year. But the reality is that as of today, the figure is at around $1,200 per ton. That means that that is supporting-

Of that bias.

Remember that the last year I can't remember the exact figure out who can halfway I figure an average close to 550 <unk> maximum six $600 per ton.

Margin of HBO miners are equal.

The H B O on bias production.

Yeah.

Great.

We're seeing it for the whole year, a figure close to 850.

Tom's has bought us.

On the year, but the reality is that as of today. The figure is at around 1200.

Dollars per tonne that means that that is reporting.

Fernando Abril-Martorell: Okay.

Josu Jon Imaz: - also a higher premium. So on top of that, we have, energy efficiency, we have a good operation on many things.

So a higher premium so.

On top of that.

Energy efficiency, we have a good operation on many things, but the main drivers for this let me say premium momentum or both.

Fernando Abril-Martorell: Mm-hmm.

Josu Jon Imaz: But the main drivers for this, let me say, premium momentum are both I mentioned before, and for that reason, not having a crystal ball, I see them quite sustainable for the year. The potential upside for our recovery of Venezuela, as I mentioned before, I mean, the fundamentals are clear, evident. We have had, and we appreciate the full support of the American government and American authorities, to push our activity in the framework of the licenses we received, and that is, I think that's a very positive step that I want to underline and to recognize.

Both I mentioned before and for that reason not having a crystal ball I see them Oh quite sustainable for the year.

The potential upside for a recovery of Venezuela, as I mentioned before I mean, the fundamentals are clear.

Clear are evident we have hard angry I appreciate the full support of the American government that American authorities.

Bush.

Our activity in the framework of our licenses, we received and that's I think that's a very positive step that they want to.

Two to underline.

And two to recognize secondly, we have a a clear dialogue.

Josu Jon Imaz: Secondly, we have a clear dialogue and a positive dialogue with the government of Venezuela in terms of taking the contracts we have in the country to support these operations we are going to increase. And the potential upside in figures terms, we talk a bit more, as I mentioned before, in the capital market day. But the first upside is that we are going to enter in a normal commercial relationship. That means that we are going to be paid by this product or for this product, sorry, we produce. And secondly, that we are going to have a clear commitment to invest in our production, to increase the oil production of the country.

Positive dialogue with the government of Venezuela in terms of our offer.

Taking the contracts we have in there in the country to support these operations, we are going to increase.

And the potential upside in figures terms, we talk a bit more than they are as I mentioned before at the capital market day.

The first.

The first one upside you said, we are going to enter in a normal commercial relationship that means that.

We are going to be paid by this product for these products, we produce and secondly that we are going to have a clear commitment to invest in our production to increase the oil production out of the country. Because we think that that is important for the social and economic development of Venezuela for the political stability of the country.

Josu Jon Imaz: Because we think that that is important for the social and economic development of Venezuela, for the political stability of the country, and it's also very important in terms of building a win-win dynamic, where more oil means more royalties, more taxes, more production for Repsol, and a better future for Venezuelan people. So we are fully committed in this dynamic, and as I mentioned before, the upsides are not included, sorry, in the figures, in the guidance, in the economic and financial guidance I mentioned before. All that is upside. Going to the Supreme Court ruling, yeah, I mean, the... You know, that, as you mentioned, there were some Supreme Court decisions regarding as non-legal, the autonomic hydrocarbon tax in the past.

On the social very important in terms of building, a dynamic where more or it means more royalties more taxes more production for repsol and a better future for finish it on people. So we are fully committed in this dynamic and as I mentioned before the upsides are not into their into the story in the.

In books.

In the figures in the guidance in the economic and financial guidance I mentioned I mentioned before all of that is upside.

Going to the Supreme Court ruling yeah, I mean a.

You know that.

You mentioned there were.

Some Supreme Court decisions.

Regarding us Nonlegal D and D autonomic hydrocarbons tax in the past.

Josu Jon Imaz: We have a very similar claim, probably, I mean, I'm not a lawyer, I'm a chemist, but I think that in legal terms could be certainly the same. And, as happened in the case of Galp, BP, and some others, there was a first resolution also for Repsol, coming from what is called in Spain the Audiencia Nacional, that was a dismissal, negative related to our claim. And we are now waiting the Supreme Court decision, and the Supreme Court decision was positive for Galp and BP. I can't anticipate what is going to be the decision of the Supreme Court for Repsol, because, I mean, it's not in my hands. But, I mean, let me underline that the claim is almost the same or very similar.

We have a very similar claim.

Probably I mean, I know TV, having a chemist, but they think that the legal terms could be.

70%.

And a.

As happened in the case of our golf BP Young on some others. There was a first for a solution also for rock salt.

Coming from what is called in the spending.

D&C unless you know that dwarfs that is missing or maybe.

Two our claim.

And we are now waiting the Supreme Court decision and the Supreme Court decision was positive for golf and BP I cant anticipate what is going to be the decision of the Supreme Court perfect short because I mean, he's not in my hands.

I mean, let me underline that the claim is almost the same or very similar xiaowei I prefer to talk come over somewhere every day on how to do these kinds of things in the future because now I seem that we have to wait.

Josu Jon Imaz: So, I prefer to talk about recoverability and how to do these kind of things in the future, because now I think that we have to wait for a legal decision of the Supreme Court about that. Gracias, Fernando.

Wait for a legal decision or the Supreme Court about that.

Vazquez from.

Michele Della Vigna: Okay, thank you. Thank you.

Okay. Thank you.

Thank you thank you Fernando.

Pablo Bannatyne: Thank you, Fernando. Our next question comes from Matt Loftin at JP Morgan.

Our next question comes from Matt Lofting of Jpmorgan.

Okay.

Matthew Lofting: Hi, thanks for taking the questions. You've covered a lot of ground, so I'll just ask you two quick follow-ups. On Venezuela, I just wondered if there's any next or additional fiscal regulatory steps that Repsol thinks is required to support you putting forward the activity and investment that you talked about earlier on the call, and how you're thinking about how prudently capital allocation towards Repsol needs to be managed within the sort of the group balance sheet? And then secondly, what, aside from the sort of the recent outage that you talked about at Cartagena, what sort of kind of planned maintenance schedule you're anticipating on the refining system for 2026 within your guidance and any sort of notable waiting on that within the quarters? Thank you.

Hi, Thanks for taking the questions you've covered a lot of ground. So I'll just ask you two quick follow ups on Venezuela, I just wondered if there's any.

Next door or additional fiscal regulatory steps the repsol things as required to support to putting forward the activity and investment that you talked about earlier on the call and how you're thinking about.

Now prudently capital allocation towards repsol needs to be managed within the sort of the group balance sheet.

And then secondly.

What aside from the sort of the.

The reason the outage that you talked about a coffee and whats the kind of planned maintenance schedule, you're anticipating on the refining system for 2026 within your guidance and any sort of notable waiting on that within the quarters. Thank you.

Josu Jon Imaz: Thank you, Matt. I mean, again, as I mentioned before, I'm chemist, I'm not a lawyer. But let me say that the in general terms, and I'm going to add some comments later, but in general terms, the contractual framework we have today in Venezuela for our operations in gas and in oil, is fully valuable and is fully supported by the American government and the licenses we receive. Saying that, we have to adjust a small things in the framework of these contracts, and what is positive is that what we have seen, a full cooperation behavior coming from the Venezuelan government to do that, because, I mean, they are fully interested on that.

Thank you, Matt I mean a.

Again, as I mentioned before I'm chemist I'm, not a lawyer, but.

Let me say that in general terms, and then going to add some comments later, but you know in terms of their contractual framework, we have to date in Venezuela for our operations in gas and in oil.

He is fully vulnerable.

He is fully supported by.

The American government on the licenses that.

We receive saying that we have to adjust its more things in the framework of these contracts.

Contracts and what is positive is that what we are seeing are full.

[noise] Corporation.

Yeah.

Behavior coming from the Venezuelan government to do that because I mean.

They are fully interested from that we have a close relationship with them and we have the full support of the energy Domino's group or in the in the White House and the full support of the Secretary of energy and the Secretary of interior in the U S to support our activity and support our operations.

Josu Jon Imaz: We have a close relationship with them, and we have the full support of the energy dominance group in the White House, and the full support of the Secretary of Energy and the Secretary of Interior in the US to support our activity and support our operations in Venezuela, in Venezuela. So our operational people and our lawyers, they are working together with them in order to adjust some small contractual terms, but I mean, broadly speaking, the framework is fully valuable and is fully supported by the licenses we've received from the American government. The Cartagena, the maintenance scheduling of refineries for this year, it's a year with, let me say, a medium low turnaround program.

So we are our operational people in over two years. They are working together with them in order to our guests. Some small contract terms, that's I mean roughly speaking.

It's pretty vulnerable and is fully supported by the licenses we have received from the American government.

The character Hana and the maintenance is scheduled in our refineries more for this year.

Yeah.

It is a year, where it's a let me say eh.

Medium.

No.

Turning around our program.

Josu Jon Imaz: This quarter, we have a conversion turnaround program that probably is going to enter some days in the second quarter in the smallest of our refineries in Coruña, that is going to impact mainly in the FCC and the coker, so the main conversion units of the refinery. We have a small units in Tarragona, so the visbreaker, that, and it's producing fuel, so it's not, let me say, nuclear, it's not core in the refinery. In the first and the third quarter, the coker of Petronor, 26 days, this quarter, and I'm checking everything. I think that there is a catalyst change or something like that in Tarragona, in the second or the third quarter.

This quarter.

We have a comparison.

Turning their own program.

Perhaps you screen to enter some days in the second quarter in the smallest of our refineries in caronia.

Is that just going to impact in mainly in the in the FCC on the coker.

The main combustion units of the refinery.

And we have a it's more units in Denver I go when I saw the lease breaker and ease pollution fuels. So he's not let me say nuclear you can of.

Core in a refinery in the first time in the third quarter.

In the Coker of a paternal 26 days.

This quarter.

The prime chicken everything I think that there is a catalyst change or something like that and in time I go nine in the second and third quarter. So I mean.

Josu Jon Imaz: So, I mean, in general terms, it's a quite medium low maintenance year. And on top of that, I mean, we have mainly concentrated in the first part of the year, and I mean, with small reformers, high relations units and some small units over the whole year. But I mean, nothing more significant I mentioned before. Thank you, Matt. No, excuse-- Yeah, it's okay. Thank you.

In general terms Isaacs great to.

Medium and low.

Maintenance.

Yeah and on.

On top of that I mean, we have mainly concentrated in the in the first part of the year.

And the smaller reformers hydro this operation you need some.

As more units over the whole year, but I mean, nothing more significant I mentioned before thank you Matt.

Yeah. Its okay. Thank you.

Paul Redman: Thank you.

Thank you.

Okay.

Pablo Bannatyne: Thank you very much, Matt, for your questions. Our next question comes from Henri Patricot at UBS.

Thank you very much Matt for your questions. Our next question comes from Andrey Buttery good at UBS.

Yeah.

Henri Patricot: Hello, everyone. Thank you for the update. Two questions, please. The first one, come back to Venezuela. You mentioned earlier that you anticipate that you can preparing to lift cargos again for payment for the natural gas production. Would that be just for kind of current production, or do you expect that you'll get payments for the past production for which you were not paid over almost the past year? And then secondly, on the cash tax payment, which was quite low in the fourth quarter and the full year 2025 as whole, just wondering, as we look at the 2026 cash flow guidance that you mentioned, what sort of cash tax payments have you assumed? Thank you.

Hello, everyone and thank you for the debate.

Two questions. Please the first one.

Conductor to Venezuela.

You mentioned earlier that you unexpected preparing to lift.

Argo's again for payment for the natural gas production.

Would that be just for kind of current production. How do you do you expect that you'll get payment for the bus production for which you said you were not paid although most of the past year.

And then secondly on the cash tax payment, which was quite low in the fourth quarter and the full year 'twenty fives as a whole just wondering as we look at the 'twenty to 'twenty six cashed.

Cash flow guidance that you mentioned what sort of cash.

Tax payments have you assumed thank you.

Okay.

Josu Jon Imaz: Merci, Henri. In Venezuela, I mean, my approach now is step by step. I think that now is time, first, to recover a normal commercial operation, so being paid by the production we have, that will be a significant step. I think that it's time to use a part of these proceeds to invest in the country and to increase the production. I think that the future of Venezuela is important for, of course, for Venezuelan people mainly, but I think that it's also important for the operators that we are in the country, and Repsol has been there for years, and we have to be part of the recovery of Venezuela.

Yeah.

Next here.

In Venezuela.

And I mean.

My my approach now is.

A step by step I think that now each time.

First to recover a normal commercial operation so being paid by the production we have that will be a significant step.

I think that this time.

Two.

Is it a part of.

These proceeds to invest in the country.

And to increase the production I think that the future. He's been a finished what I see important for of course for minutes spent on people mainly.

They think that is also important for the operators that we are in the country and shoulder has been there for years.

And we have to be part of that cohort of Venezuela. So to do that we are fully focused in recovering normalizing or assuming the normal commercialization of a framework.

Josu Jon Imaz: So to do that, we are fully focused in recovering and normalizing or resuming the normal commercialization framework to invest, to increase the production in a quick way in Venezuela. I mean, I personally even took a public commitment in a statement that we are going to multiply by 3, in 3 years, the production in Venezuela. That was not blah, blah, blah, was fully checked with my team, was fully analyzed, and we see also room in the short term to increasing 50% of production in one year in Venezuela. That is now our priority.

Two invest to increase the production in a quick way in Venezuela, I mean, I personally even took it public.

Public commitments on the statement that we are going to multiply by three in three years of production in Venezuela.

That was no gobbler was fully check with my team.

Fully analyzed.

And we see also a room in the short term to increase and a 50% of production in one year in Venezuela that is now our priorities I think that if we enter we win dynamic if Venezuela recover a normal production economic development of the country.

Josu Jon Imaz: I think that if we enter in a win-win dynamic, if Venezuela recover a normal production, if the economic development of the country is evolving in the right way, I'm sure that we are going to find frameworks and solutions to talk about the past, but now is not the priority. The priority is to recover a normal framework of operation and commercialization of the products in Venezuela. So that is not now in our agenda in the short term. It's of course in our balance, and that is all right, but that is not in our agenda. As I mentioned before, we are not including these figures now, and we talk about that in the CMD.

S a.

Evolving in the right way I'm sure that we are going to find.

Frameworks and solutions to talk about the past.

Now is not the priority the priority is to recover our normal framework of operation and commercialization of the products in Venezuela. So that these notes now.

In honor of our agenda in the short term.

So of course, you know a balance on that and that is all right, but that is not in our agenda.

And as I mentioned before we are not including these figures now and we've talked about back in the CMT a cash tax payments that we are assuming.

Josu Jon Imaz: Cash tax payments, we are assuming in 2026, I mean, the figure could be something between 15 or 20 percent over the... I mean, refer to the cash flow from operations. I mean, as a some kind of guidance of the volume of these tax payments, that of course is before the cash flow from operations. I mean, between the EBITDA and the cash flow from operations, but as a guidance, it could be a figure close to... figure I mentioned before. Merci, Henri.

In 2026, I mean, the figure could be something in between the 15 or 20% to over the I mean, you refer to the cash flow from our operations.

I saw some kind of guidance of the volume of these tax payments that's of course before the cash flow from operations I mean between the EBITDA and the cash flow from operational guidance. It could be a figure close to a figure I mentioned before.

Yeah.

Okay.

Pablo Bannatyne: Thank you very much, Henri. Our next question comes from Paul Redman at Exane BNP Paribas.

Thank you very much and our next question comes from Paul Redmond at Axon body everybody buys.

Paul Redman: Hi, thank you very much for your time. Just one question. Your upstream operating income is down around 15% quarter-over-quarter. I just wanted to see if you could talk me through the main moving parts, and then how we should think about that as we look into 2026. Thank you very much.

Alright, Thank you very much of your time.

Just one question your upstream operating income is down around 15% quarter on quarter I was just.

Wanted to see if you could talk me through the main moving parts and then how we should think about that as we look into 2026. Thank you very much.

Josu Jon Imaz: Thank you, Paul. I mean, it's true that there is a reduction of the operating income in the upstream in the last quarter, and there are two factors for that. And when you analyze a quarter after quarter, is the Brent price evolution, that is, it was, I mean, clearly lower. That is the main reason. Secondly, I mean, you also have to take into account that there are two disposals, Colombia and Indonesia, and probably what is more important is that there are EUR 80 million, roughly speaking, of exploration costs in the last quarter that are influencing the result of the upstream.

Thank you Paul I mean, it's true that there is that he saw a reduction of the operating income in the upstream there last quarter and there are two factors for that I mean.

When you analyze it.

Quarter after quarter is that the Brent price.

Evolution that this it Ross.

I mean clearly.

The lower that is the main reason there secondly, I mean, you also have to take into account that the there are two disposals, Columbia and Indonesia, I'm, probably what is more important is that there are 80 million roughly speaking of exploration.

Costs in the last quarter that Dar and influencing the net result of the of the Africa and so the main reasons I mean a.

Josu Jon Imaz: So the main reasons, I mean, that is—I mean, the explanation, I mean, oil price, the benefits, Indonesia and Colombia disposals, and probably what is the most important fact, in numeric terms, in the last quarter, that is the EUR 80 million of exploration costs that we used to... I mean, because we don't have any expectation of developing these projects, and we pass this cost or factor this cost in our P&L. Thank you, Paul.

And that is I mean, this is finished I mean oil price.

It had been in Venice young on Columbia disposals, I'm, probably what is the most important fact.

In in numeric terms in the last quarter that these that the 80 million of our exploration.

The ears too I mean, because we don't have any expectation of a develop they said projects under way.

But these cost factories cost in our P&L. Thank you.

Pablo Bannatyne: Thank you very much, Paul, for your questions. That was our last question today. With this, we will bring our Q4 conference call to an end. Thank you very much for your attendance.

Thank you very much Paul for your question.

Our last question today with this we will bring our fourth quarter conference call Glenn and thank you very much for your other nuts.

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