Repsol's investments in Spain - no comments: according to the project up to regulatory stability.

Repsol, one of the largest oil and gas companies in Spain, is considering redirecting its investments to other countries due to the unstable political situation and tax pressure in the country. The company makes decisions about capital investment in each project individually, based on the stability and attractiveness of the conditions to ensure profitability.

One of the projects that has been put on hold is the investment in a 100-megawatt electrolyzer at the Petronor oil refinery complex in Bilbao. The construction of a synthetic fuel industrial plant in the port of Bilbao may also be delayed. These decisions to halt investments until "stable and sufficiently attractive conditions for ensuring the profitability of projects" are established will affect investments in the Basque Country amounting to around 200 million euros.

Analysts at Barclays Research note that the expansion of Spain's extraordinary profits tax on oil and gas companies poses a threat to Repsol's investments in Spain. At the same time, the situation in the United States is much more attractive. Capital allocation will be a key issue in updating Repsol's strategy. The company also needs to consider cash flows and its balance sheet to develop its business in both traditional and new technologies.

Repsol warned that a possible extension of the temporary tax on energy companies could hinder the implementation of industrial projects in Spain. In this regard, the company filed a lawsuit against the government in February, but legal proceedings may take one to two years or even longer, which will inevitably affect the company's investments in Spain, analysts explain.

Despite this, Barclays Research has raised its earnings per share forecast for 2023 by 3%, based on the results of the third quarter. Repsol plans to invest 2.55 billion euros in hydrogen production projects by 2030.

Currently, the construction of a demonstration synthetic fuel plant in the Port of Bilbao is ongoing, with investments amounting to 103 million euros. The plant was expected to be completed by the end of 2025, with an initial capacity of over 2,100 tons per year, or about 18,000 barrels. However, scaling the plant to an industrial level is still delayed. The company is also considering the possibility of going public in partnership with EIG. However, the decision will depend on market conditions at that time. There is still much work to be done before that, including improving overall business efficiency and reducing CO2 and methane emissions.