Repsol confirmed yesterday that it will raise its dividend by 10%, which means three things. First, that it will keep its dividend policy that is so attractive with shareholders. Second, it reveals that the petroleum company is in good standing.
They margins and profits are improving, cheered on by new oil discoveries and the rising price of crude.
The third implication concerns Sacyr, its principal shareholder and biggest winner from the dividend increase, which will give them another 141 million euros and pay off some of their debt.
The decision to raise the dividend indicates that Luis del Rivero?s has shelved dissensions between the construction and petroleum companies since the IPO. And both companies are winning now. Repsol up to it in dividends and Sacyr assumes that there are other ways to get rid of its current liability to appeal the dividend as Del Rivero claimed.
