MADRID, Feb 19 (Reuters) - Repsol's fourth-quarter results on Thursday marked the debut of a new reporting model under which the Spanish company aims to better reflect the growing importance of
Repsol unveils new reporting model as JV partnerships and IPO plans grow
MADRID, Feb 19 (Reuters) - Repsol's fourth-quarter results on Thursday marked the debut of a new reporting model under which the Spanish company aims to better reflect the growing importance of minority shareholders and joint ventures in businesses like upstream and low carbon.
The change will also make it easier to compare the Spanish firm with peers, it said in quarterly disclosure documents, at a time when it is preparing the upstream unit for a liquidity event - which could mean options like an IPO or a reverse merger with a company listed in the United States.
In 2022, Repsol entered into a deal to sell a 25% stake in the upstream division to U.S. fund EIG, valuing the whole business around that time at $19 billion, including debt.
In recent years, it has also sold minority stakes in renewable projects to the likes of Inditex founder Amancio Ortega's investment firm Pontegadea and U.S.-based investment firm Stonepeak.
Changes do not affect consolidated financial statements and reporting segments remain the same. Under the new model, the contribution of joint ventures will be accounted for using the equity method. That replaces the previous system using proportionate consolidation.
(Reporting by Pietro Lombardi; Editing by David Latona)
