Spain’s energy sector is weathering the global supply crisis from a position of strength thanks to years of investment in refining, according to Repsol Chairman Antonio Brufau, who warned Europe against abandoning oil and gas infra amid escalating turmoil in the Middle East.

 

Addressing Repsol’s Annual General Meeting, Brufau said Spain’s refining industry — which he called the strongest in Europe — has become a strategic shield as the conflict involving Iran and the closure of the Strait of Hormuz disrupt global supplies of crude, diesel and especially kerosene.

 

“Refining is strategic for Spain and for Europe and needs to be competitive,” he said.

 

Brufau said Repsol continued investing in refining even without regulatory backing, arguing that those decisions are now proving critical as fuel markets tighten and concerns over jet fuel shortages grow.

 

“Late though it may be, it is welcome,” he said, referring to growing public recognition of the sector’s importance.

 

The chairman drew a sharp contrast between Spain and the wider European market, noting that while Europe has shut down 35 refineries over the last 15 years, Spain maintained and modernized its network of eight refineries capable of processing a wide range of crude oils sourced largely from the Atlantic basin.

 

That strategy, he argued, has left Spain better prepared than much of Europe to absorb the shockwaves now hitting global energy markets.

 

Brufau also warned that Europe’s heavy dependence on imported energy has left the continent exposed at a time of mounting geopolitical instability.

 

The European Union imports nearly 60% of the energy it consumes, placing it in a position of “vulnerability,” he said, adding: “The opposite of the United States, which is self-sufficient.”

 

He urged Brussels to remove barriers to investment in oil and gas infrastructure, avoid imposing excessive costs on European industry, and support renewable fuels on equal terms with renewable electricity.

 

Despite the push toward decarbonization, Brufau insisted conventional energy sources will remain essential for years to come, noting that oil and gas still account for roughly 60% of the current energy mix. He called for a balanced strategy combining domestic hydrocarbon production, diversified imports, renewable energy expansion and emerging technologies such as synthetic fuels.

 

Repsol CEO Josu Jon Imaz used the meeting to reinforce the company’s growth and shareholder return strategy, promising “competitive and attractive” remuneration through 2028.

 

Over the 2026–2028 period, Repsol plans to allocate between 30% and 40% of operating cash flow to dividends and share buybacks.

 

“As a result of the capital reductions associated with these share buybacks, the dividend per share will increase by between 6% and 9% per year until 2028, subject to the variability of operating cash flow and the evolution of the share price,” he said.

 

Repsol will raise its 2026 cash dividend to €1.051 per share, up 7.8% from the previous year. Imaz also highlighted that total shareholder returns reached 47% last year, far ahead of the 14% average posted by European rivals.

 

The company is continuing to prioritize upstream oil and gas production, with more than 80% of exploration and production investment directed toward the United States. Repsol aims to produce between 580,000 and 600,000 barrels of oil equivalent per day on average.

 

At the same time, the company is accelerating investment in low-carbon and renewable fuel projects, including a new renewable fuels plant in Puertollano, a synthetic fuels demonstration facility in Bilbao, the expansion of the Sines industrial complex in Portugal, and the Ecoplanta project in Tarragona, scheduled to begin operations in 2029.

 

In power and gas, Repsol aims to surpass 4 million customers by 2028, while its low-carbon generation business plans to add 1 gigawatt of capacity annually to reach 9 GW by the end of the decade.

 

Against the backdrop of escalating geopolitical tensions and tightening energy markets, Imaz said governments are increasingly focused on safeguarding access to affordable energy and critical raw materials.

 

“Having reliable and price-competitive energy, critical raw materials, and our own industrial and technological capabilities is essential,” he emphasized.