MADRID (AP) — Spanish energy company Repsol said it will sell $7.1 billion in non-strategic assets and slash spending over the next five years as part of a plan to increase efficiency and cope with weak oil prices.
Repsol SA said Thursday its 2016-2020 strategic plan calls for spending to be cut 38% without altering the company’s profile. A drop in oil prices in recent months is forcing many energy companies to make significant adjustments.
The company said it intends to keep dividend payments stable even if crude prices remain at $50 per barrel. Repsol SA said Wednesday its net profit for the year will fall to between $1.42 billion and $1.7 billion, from $1.83 billion last year, due to lower prices and refining margins.