Josu John ImazCEO of Repsol, used the company’s results presentation to speak out about Pedro Sanchez’s “tax” on large energy companies.

The Repsol leader warned that “the lack of stability in the country’s regulatory and financial framework could impact Repsol’s future industrial projects in Spain.” Imaz thus mentioned the possibility of maintaining a tax on large energy companies, initially temporary and emergency. Imaz noted that Spain is the “key geographic region” where the group is investing and where it plans to continue to develop “this big investment” in its industrial assets, although he added that for this to continue, it is necessary to “have clear regulatory and financial basis, predictable and stable.”

Repsol assured that the “tax”, which was appealed by the industry giants, penalizes companies that invest in industrial assets and favors importers who “do not create jobs or relevant economic activity in Spain.”

Imaz cited as an example the fact that the group’s chemicals division in Spain pays excess profits tax based on turnover, “while on a net level it is making losses and has difficulty competing in the international market.”

Otherwise, Imaz pointed to “other alternatives” such as Portugal, where it could pursue international operations in its industrial business.

“But we are again going to carefully analyze the regulatory and tax framework before making new investment decisions in Spanish geography. Because we must protect, first of all, our shareholders, our employees,” he emphasized.

The current tax applies during 2023 and 2024 to energy companies and is taxed at 1.2% of the turnover generated in those companies with revenues exceeding €1,000 million, excluding regulated businesses and activities outside Spain and outside the peninsula.

Repsol stands out as the company most affected by the tax, with about 450 million euros this year, followed by Cepsa with 323 million euros; Naturgy and Endesa – about 300 million euros each; and Iberdrola with 200 million euros.

Repsol tax payment

During the presentation, Repsol emphasized that more than half of its profits were used to pay taxes. The group’s tax contribution between January and September thus amounted to €10,890 million going to public coffers, with approximately 70% (€7,441 million) coming from Spain.

Accrued own taxes amounted to 3.206 million euros and accounted for more than half of the profit (52%). In addition, the company indicated that during the period it contributed a corporate tax rate of 37%, significantly higher than the nominal rate in force in Spain (25%) and the OECD average, placing it “among the Ibex 35 companies. who paid the majority of taxes in the country.”